morpho, Licenseless cryptocurrency loan agreement, released an update designed to remain consistent further Decentralized Finance (Defi) brings more loans through more customized loan terms through traditional loans.
Morpho said in a press release on Thursday that the Morpho V2 offers a market-driven fixed interest rate with customizable terms, a fixed interest rate that was previously characterized in DEFI, which is necessary to meet the needs of institutions and businesses that want to establish or migrate financial products on the chain.
defiblockchain-based lending and lending chain asset systems will surge this year, just like in 2021, especially because of the participation of institutional finance and real-world assets (RWAS).
However, Defi infrastructure needs to go beyond certain on-chain limitations, such as relying on fixed formulas that over-straighten and compute rates in order to extend to the institutional level potential.
“With Morpho V2, we want to go beyond rigid pool-based structures that dominate today’s DEFI, where users have little control over prices or terms,” Morpho Labs CEO Paul Frambot said in an email. “V2 introduces intent-based models where lenders and borrowers can accurately express what they want, such as fixed interest rates, fixed term loans, specific collateral preferences, etc., and the system finds the best match.”
According to the press release, while Morpho’s previous Morpho restricts loans to single-outside types, V2 supports a single asset, multiple assets or an entire portfolio as collateral, including RWAS and NICHE assets.
“This accuracy and flexibility is needed for sophisticated Defi users and institutions that need to provide predictable customizable loan links,” Frambot said. “V2 unlocks the potential of chain loans by introducing an open market where users decide whether a loan should be issued, not an agreement.”
The upgrade also has further compliance, including enhanced Knowledge Customers (KYC) and whitelists, but has not changed the platform’s open source, licenseless and non-monitoring properties, the release said.
A representative for the company said in an email that the Morpho V2 will be launched in the coming weeks.
