Morpho (lending network)
Morpho is an open-source decentralized finance (DeFi) lending network that operates on Ethereum and other EVM-compatible blockchains. It was founded in 2021 and allows businesses and financial applications to develop and access customized lending markets. The project has raised over $70 million from various investors, including a16z, Ribbit Capital, Variant, Coinbase Ventures, Pantera, and Nascent. In 2024, Morpho was included in Forbes' 30 Under 30 list, recognized for its contributions in the finance sector in Europe.
History
Morpho was established in August 2021 by Paul Frambot, Merline Egalite, Julien Thomas, and Mathis Gontier Delanuey, focusing on research and software development related to blockchain technology. In September 2021, Frambot obtained a $1 million seed round, while completing his fourth year as an engineering student, followed by an $18 million investment from Andreessen Horowitz and Variant in June 2022. Morpho was launched in June 2022 with the introduction of Morpho V0, also known as the "Morpho Optimizer", which is a peer-to-peer layer that operates on top of the Aave and Compound platforms.
In January 2024, Morpho released Morpho V1, which includes an immutable protocol featuring Morpho Markets and Morpho Vaults, characterized by a modular, permissionless architecture. In August 2024, the project raised $50 million in a funding round led by Ribbit Capital. In June 2025, Morpho announced Morpho V2, a fixed-rate, fixed-term lending protocol designed for institutional-scale on-chain lending.
Philosophy
Morpho aims to develop open, permissionless financial infrastructure. The network focuses on reducing intermediaries and facilitating capital allocation through market forces.
Adoption and governance
Morpho has been integrated into various platforms, including Coinbase, Cryoto.com, Gemini, and Bitpanda. The network is recognized for its role in the "DeFi mullet" model, where centralized platforms function as user-facing frontends supported by decentralized protocols. Morpho is governed by the Morpho DAO, which utilizes the MORPHO token for decision-making. Proposals are discussed in community forums and implemented through on-chain voting mechanisms.