Key facts
- Morpho has launched its new fixed-rate lending protocol, Morpho Midnight, on the Base network.
- Morpho Midnight allows lenders and borrowers to propose custom interest rates and maturities.
- The protocol aims to bring traditional credit market features like predictable rates and defined maturities to DeFi.
- Initially, Morpho Midnight supports cbBTC and USDC with various maturity dates.
- The launch follows Morpho's $175 million funding round and aims to expand integrations with financial institutions.
Lending protocol Morpho has launched Morpho Midnight on the Base network, introducing fixed-rate, fixed-term loans to its on-chain credit offerings. This new protocol complements Morpho Blue's existing variable-rate lending markets by allowing users to propose and agree upon specific interest rates and maturities, rather than relying on algorithmic pool pricing.
The introduction of predictable rates and defined maturities aims to make on-chain lending more appealing to institutions and businesses that require advance planning for funding costs, returns, and risk management. These features are standard in traditional credit markets but have been less common in decentralized finance.
Morpho stated that Midnight is now live on the Base mainnet, initially supporting cbBTC and USDC across various maturity dates. The launch was described as a controlled, progressive rollout prioritizing security. Crypto-native users active on Morpho Blue have shown interest, and several unnamed enterprises and institutions are developing products on the protocol in beta.
Morpho first detailed its fixed-rate system in 2025 as part of a broader "Morpho V2" roadmap, envisioning a peer-to-peer marketplace for custom loan offers. The protocol's "offered capital" model is designed to circumvent liquidity locking or fragmentation issues that have affected previous fixed-rate DeFi protocols. The launch follows Morpho's $175 million funding round in June, led by Paradigm, a16z crypto, and Ribbit Capital, with plans to expand integrations with traditional financial entities.