Morpho, a permissionless cryptocurrency lending protocol, unveiled an update that tries to further align the decentralized financing (Defi) with traditional loans by bringing more tailor -made, predictable loans conditions.
Morpho V2 supplies market-driven, fixed-term loans on fixed periods with adjustable conditions, functions that are previously unseen in Defi, that must meet the requirements of institutions and companies that are looking for financial products on the chain, said Morpho on Thursday in a press release.
Defi, a blockchain-based and automated system of loans and borrowing on chains, will stretch this year, just like in 2021, in particular because of the involvement of institutional finances and Real-World assets (RWAS).
But Defi infrastructure must exceed certain limits to the chains, such as dependence on over-collection and fixed formulas for calculating speeds to scale to potential of institutional quality.
“With Morpho V2 we wanted to go further than the rigid, polar-based structures that Defi dominate today where users have little control over the rates or conditions,” said Paul Frambot, CEO of Morpho Labs in an e-mail. “V2 introduces an intent -based model in which lenders and borrowers express exactly what they want, such as fixed interest rates, loans with a fixed term, specific collateral preferences, etc., and the system finds the best match.”
While the previous version of Morpho Limited Loans to a few colland types, V2 supports some assets, multiple assets or entire portfolios such as collateral, including RWAS and Niche assets, according to a press release.
“This level of precision and flexibility is what is needed to operate both advanced Defi users and institutions that are looking for predictable, customizable loans on the chain,” said Frambot. “V2 unlocks the potential of lending on the chain by introducing an open market where users are those to decide whether a loan should be issued, not the protocol.”
The upgrade also continues with compliance, including improved Knowledge-you-Customer (KYC) and white list, but without changing the open source, permissionless and non-recess of the platform, the release said.
Morpho V2 will be rolled out in the coming weeks, said a company representative in an e -mail.