**Morpho** is a decentralized finance (DeFi) lending and borrowing protocol on Ethereum. It has recently become the first layer-2 to launch on Base, an L2 scaling network for Ethereum introduced by Coinbase in 2023.

While Morpho initially launched on the Ethereum blockchain, its move to Base aims to tap into a growing DeFi ecosystem. Morpho offers a peer-to-peer platform for liquidity, allowing users to benefit from a more robust capital utilization rate.

Morpho: First L2 on Base

Paul Frambot, CEO of Morpho Labs, commented on the deployment on Base. Initially opposed to expanding onto a second chain, he noted that circumstances have changed. In a recent update, Frambot expressed optimism about Morpho’s potential on Base, suggesting it could become the top lending and borrowing protocol on the new L2 network.

“Today, Morpho is launching on Base, the first L2 in its history. For the past two years, I have been opposed to deploying on any other chain because I wanted Morpho to maintain a narrow focus. At the time, we couldn’t envision a new deployment doubling Morpho’s TVL. But things have changed.”

Frambot added that the Base platform could potentially outpace the Ethereum version within the next year.

Earn, Borrow, Build

Morpho’s launch on Base introduces several features for the community to leverage. These include MetaMorpho Vaults, offering optimized yields through passive lending. Users can earn by depositing assets into a vault. Additionally, users can borrow from Morpho Markets by depositing collateral. For example, the cbETH/USDC market allows borrowing the USDC stablecoin using cbETH as collateral.

With Base seeing greater adoption, the potential onboarding of the next wave of users will be crucial to Morpho’s growth. Currently, data indicates Morpho has a total value locked (TVL) of $1.82 billion. At the start of the year, the TVL stood at approximately $597 million, suggesting an increase of nearly 205% year-to-date.

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