Morpho, the first L2 protocol to be launched on Base using DeFi protocol
Morpho, the decentralized finance protocol (DeFi), which allows for lending and borrowing on Ethereum, is now the first layer-2 launch on Base. Base, an Ethereum L2 scaling network that Coinbase launched in 2023, was formerly known as Coinbase.
Morpho launched initially on the Ethereum Blockchain, but is now going live on Base in order to tap into an expanding DeFi ecosystem.
Morpho offers a peer to peer platform for liquidity. Users can tap into a robust capital utilization rate.
Morpho is the first L2 to arrive on base
Paul Frambot commented on the deployment of Base. He noted that although he initially opposed the idea of expanding to a second chain “things have evolved.”
Frambot stated in a posting that appeared on X Tuesday that Morpho has the potential to be the leading lending and borrowing protocol at Base.
“Today Morpho launches on Base as the first L2 of its history. In the last two years, I’ve been against deploying to any other chain as I wanted Morpho maintain its narrow focus. We couldn’t have imagined a new deployment that would double Morpho’s TVL. But things have changed.”
The CEO of Morpho Labs said that the Base platform, which is the protocol’s base, could surpass the Ethereum version within the next year.
Earn, Borrow, Build
The launch of Morpho on Base offers several features to the community. MetaMorpho Vaults is a feature which provides optimized yields through passive lending. Users can earn money by depositing assets in a vault.
Morpho Markets also allows users to borrow, by depositing collateral. The cbETH/USDC exchange, for example, allows users to borrow USDC stablecoins with cbETH collateral.
Morpho will need to onboard the next generation of users as Base is becoming more popular.
DeFiLlama indicates that Morpho currently has a TVL (total value locked) of 1.82 billion dollars.
The TVL was approximately $597 millions at the beginning of the year. This suggests that the P2P layer on the chain has seen a TVL growth of almost 205% from year to date.
Will crypto regulations change after the SEC’s former head of crypto leaves?
In his LinkedIn posting he referred to securities trading as a “team game” and thanked his SEC co-workers for their collaboration and shared efforts in order to achieve a goal.
He did not provide any details about his future employment. He wrote, however, that he was going to take a vacation and travel with family.
Nine Years in the SEC
Hirsch served as an advisor to SEC commissioner Caroline Crenshaw, working on issues related law enforcement, digital assets and cybersecurity.
He has trained regulators, law enforcement officers, and other SEC employees on digital assets, cybersecurity and related issues.
Hirsch spent about nine years working for the SEC. He began his career as a lawyer, but later became the head of the department that dealt with crypto exchanges ( defi ) and projects.
Is there a new role?
The meme project Pump.Fun announced that Hirsch will join the project as its Head of Trading. The team stated that David concluded that his role as a regulatory was no longer fulfilling, and that he needed to start a brand new chapter.
Pump.Fun noted that David had allegedly launched more than 100 coins and would now be in charge Pump.Fun’s new internal trading division, which will be responsible for launching 1,000 coins each day. Hirsch denied the statement later.
The role of Hirsch in crypto regulation
Hirsch was appointed to the position of division head in October 2022 when the cryptomarket was at its lowest point in recent years. In October 2022, the crypto market was in its worst position since the early 2000s.
The SEC launched a law enforcement campaign while Hirsch was the head of the department. Kraken Coinbase Binance Ripple and other industry giants were under pressure.
Legal battles have been long and drawn out over the lawsuits filed against Binance and Cobase in separate cases within a few days. Kraken settled with the Commission by paying a fine of $30 million.
What is the future of cryptocurrency in the U.S.
Hirsch’s departure removes from the industry a prominent figure who openly advocated strict cryptocurrency regulations. The question remains as to who will be the next leader of the cryptocurrency industry.
The SEC will be largely influenced by the new president of the United States, who is expected to take office in the fall. Grayscale commissioned a survey that showed Americans are more interested in cryptocurrency ahead of the U.S. Presidential election. 53% of respondents said they would vote for a candidate with cryptocurrencies knowledge.
The administration of U.S. president Joe Biden now tries to earn loyalty from voters who own digital asset. This is reflected in a number of recent initiatives including the adoption of spot Ethereum ETFs.
Biden’s main opponent, former president Donald Trump (previously ), called himself the “crypto-president” and promised many good things for industry if elected. He promised to stop the war against crypto started by Biden and to do everything he could to secure the future of Bitcoin and other cryptocurrencies.
Gary Gensler who calls all cryptocurrencies, except BTC, cryptocurrencies, is still the SEC chairman. After the American elections, perhaps it will be possible for things to improve.
