Home›Crypto›Market Structure›Morpho launches Midnight fixed-rate USDC lending on Et…

Morpho launches Midnight fixed-rate USDC lending on Ethereum

The protocol went live Sept. 8, but about $5 billion in Morpho Vault deposits remains unable to allocate to Midnight until a DAO transaction enables vault access.

Reported · Written up by our desk · Market Structure

Morpho has launched its Midnight fixed-term, fixed-rate lending protocol on Ethereum, expanding the product beyond Base on Sept. 8, to give Ethereum users access to USDC loans backed by WBTC or cbBTC.

The launch is aimed at providing rate certainty. HousingWire reports that, compared with Morpho Blue’s open-ended loans whose rates shift with a formula, Midnight uses credit units priced in the market for fixed maturities, allowing borrowers and lenders to establish financing terms in advance rather than recalculating every block.

Morpho said Midnight lenders buy credit units below their one-to-one redemption value at maturity, with Morpho documentation noting that two lenders in the same market can receive different rates because each rate depends on the price at which the lender trades.

Despite the Ethereum rollout, Morpho Vaults still cannot supply capital to Midnight. The report said Morpho Vaults hold about $5 billion in deposits that can allocate only to Morpho Blue markets until the DAO enables Midnight allocations, and Morpho expects vault activation in the fourth quarter.

Latest closeEthereum $2,494.80 ▲0.1%

More like this

Sources