How Morpho Is Redefining Money Markets | Paul Frambot | S9 E4
Episode publishedPodcast: Bell CurveBell Curve
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I think it's it's a new experiment. Like, you know, more for v two is unlike anything that has been done in DeFi. We like to take bets, and I think that's a a huge one, you know, to could have, like, tremendous upside that goes way beyond, like, the current state of landing today if it succeeds.
Quick shout out to today's sponsor, Katana. We'll hear more about Katana and their pre deposit campaign later today. But for now, let's get into the episode. Quick shout out to permissionless four coming this summer to New York, June 24 through June 26. We'll have speakers from all across the industry, including Hayden Adams, Kyle Simani, Guy Young, and more. Get your tickets today by following the link in today's show notes, and make sure to use code Bell 10 to save 10% on your purchase. See you there. Hey, everyone. Quick disclaimer before we get into today's episode. Nothing said on Bell Cu
for having me. This
one is gonna be a really fun one. Paul, I didn't mention this to you or Monet, actually, before we recorded, but Bell Curve is about a two year old podcast. And, actually, the very first season that we did was on the need for fixed rate borrow lend in DeFi. So this is a podcast actually two years in the making. Happy to see that Morpho is taking the lead here. And, yeah, really wanna spend a bunch of time talking about Morpho v two. So, actually, we were we were discussing here before we got on that, so the fixed rate, borrow lend is kind of the headline of Morpho v two, but that actually wasn
Sure. So, you know, Morpho is a nonchain lending and borrowing infrastructure, that lets, you know, anyone trade their own lending and borrowing use cases on one end to earn yields, with a specific risk profile or compliance profile, and on the other hand, to get financing with collateralized loans. Right? And, think of Morpher just as, like, a permission less immutable, like, flexible infrastructure where Drupal can deploy and and do what they want with this. And so we we, the v one of Morpho was focused on, like, a variable rate primitive where, essentially, you could only create landing and
Excellent. Okay. So, before we get into the unique design here, I I would love to get a sense. So fixed rate barland is actually something that has been iterated on, or tried in crypto at least before. There are solutions that exist. I think what we did season one, we talked to Teddy from Notional. You know, term, is another attempt at this, but we haven't really been able to achieve, like, anything over, like, a billion in TVL or really take off. And I remember a couple years ago reading about, you know, people look at the, you know, total addressable market of debt in The US, and they look a
Right. So So I think few things. On the need side of things, pictures is definitely needed. I think, especially if we want to, you know, grow DeFi beyond, like, crypto users, it's not crucial for DeFi native users and funds that are quite active that, you know, value a lot flexibility and ability to withdraw and and exit. So liquidity is is actually more important than predictability of the rate for very crypto, you know, DJ and DeFi users, etcetera. And even in crypto, like, in exchanges, you have a lot of, like, perpetual, you know, exchanges, which also don't have, like, those those those k
I I, am hearing that, like, basically, the curators will kind of solve that UX UX challenge that's been hamstringing fixed rates, from the perspective of lenders. But I I also kind of see that it might be a bit of work, especially for, like, retail users, who are wanting to borrow at
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