Morpho recently closed its fundraising round co-led by Variant and a16z after raising 18 million dollars. Over 80 more investors participated in the event, including power users, founders, advisors, and builders.
The venture will use these funds to revolutionize decentralized lending. Morpho introduced a lending protocol that merges the existing liquidity pool mechanism operating in AAVE or Compound with the efficiency of peer-to-peer matching engines used by order books.
Named Morpho-Compound, the protocol will elevate Compound with an enhanced APY using P2P matchings. At the same time, it will maintain the same liquidation parameters, user experience, and liquidity.
Spencer Noon, Variant Fund’s General Partner, praised Morphon after the event. According to Spencer, the past three years have shown the incredible potential of decentralized lending protocols. They have been used to facilitate billion dollars in loans while fending off unfavorable market situations.
However, their past successes do not mean they offer the most competitive rates. Thus, Morpho offers a new lending system that watches borrowers and suppliers while sitting directly on top of lending pools like Compound and Aave.
It unlocks rates that are competitive off and on-chain. If executed properly, Morpho-Compound can become the hub for the new global, decentralized financial ecosystem, added Spencer.
Within a few weeks of its market experience, the protocol has already amassed 30 million dollars of liquidity. Users can easily access the protocol via Morpho’s optimized gateway.
Besides Morpho-Compound, the network also plans on launching Morpho-Aave in a few weeks. The updates regarding the same will be posted on its official Twitter account. Seeing how well the market has received the project, it will surely become a global hit.