Crypto lending platform Morpho V2 enhances DeFi with fixed-rate loans and real-world asset support.

From Yahoo Finance: 2025-06-12 10:00:00

Morpho, a crypto lending protocol, introduces Morpho V2 with market-driven fixed-rate loans, customizable terms, and support for single or multiple assets as collateral, including real-world assets. This update aims to bridge DeFi with traditional lending, catering to institutions and enterprises seeking on-chain financial products. V2 emphasizes user control over rates and terms.

DeFi, a blockchain-based lending system, is expected to grow in 2022 with institutional finance and real-world assets driving the surge. To reach institutional-grade potential, DeFi infrastructure must overcome limitations like over-collateralization and fixed rate formulas. Morpho V2 aims to address these challenges by offering customizable, fixed-term loans with specific collateral preferences, enhancing user experience and flexibility.

Morpho Labs CEO Paul Frambot emphasizes the importance of user control in DeFi lending, stating that V2’s intent-based model allows lenders and borrowers to express their loan preferences for a more tailored experience. V2’s support for various collateral types, including real-world assets and niche assets, enhances precision and flexibility, catering to both sophisticated DeFi users and institutions looking for customizable on-chain loans.

Morpho V2 also enhances compliance measures with improved KYC and whitelisting processes while maintaining its open-source, permissionless, and non-custodial attributes. The upgrade is set to be rolled out in the coming weeks, providing users with a more refined and flexible lending experience on-chain.

Read more: Crypto Lending Platform Morpho V2 Brings DeFi Closer to Traditional Finance