Morpho, a cryptocurrency loan protocol without authorization, has revealed an update that aims to further align decentralized finance (DEFI) with traditional loans bringing more in terms of tailor-made and predictable loan conditions.
Morpho V2 offers fixed rate loans based on the market with customizable terms, invisible features previously in DEFI, which are necessary to respond to the requests of institutions and companies seeking to build or migrate financial products in mind, Morpho said in a press release on Thursday.
DEFI, a system based on blockchain and automated loans and borrowing on chain assets, should increase this year, as in 2021, in particular due to the involvement of institutional finances and active world (RWAS).
But the infrastructure DEFI must exceed certain chain limits such as dependence on over-collateralization and fixed formulas to calculate rates in order to move on to institutional quality potential.
“With Morpho V2, we wanted to go beyond the rigid structures based on the swimming pool which dominate today where users have little control over rates or terms,” said the CEO of Morpho Labs, Paul Frambot, in an email. “V2 presents a model based on the intention where lenders and borrowers express exactly what they want, such as the fixed rate, fixed -term loans, specific guarantee preferences, etc., and the system finds the best correspondence.”
While the previous version of Morpho has limited loans to unique types of guarantees, V2 supports unique assets, multiple assets or whole warranty wallets, including RWAS and niche assets, according to a press release.
“This level of precision and flexibility is what is necessary to serve both users and institutions of sophisticated defi in search of predictable and customizable chain loans,” said Raspomb. “V2 unlocks the potential of chain loans by introducing a free market where users are those who decide if a loan should be issued, not the protocol.”
The upgrade also goes further with compliance, in particular an improvement of the knowledge customer (KYC) and the white list, but without modifying the open source attributes, without authorization and not guardians of the platform, according to the press release.
Morpho V2 will be deployed in the coming weeks, said a company representative in an email.
