Morpho Powers New DeFi Lending Solutions

Morpho has reached a significant milestone with $2 billion in total value locked (TVL) on Base Layer 2 network. This achievement makes it the largest DeFi protocol instance on any L2 platform. - Previously recognized as Base's largest lending protocol by active loans - Offers optimized lending and borrowing services - Available at [Morpho Base](https://app.morpho.org/base/earn) The protocol maintains consistent growth while providing enhanced rates and preserving core lending functionality.

Morpho has released three key borrowing features across multiple networks (Ethereum, Base, Unichain, Polygon): - **Multiply**: One-click position looping via VeloraDEX integration, allowing borrowers to increase exposure through automated collateral swaps - **Repay With Collateral**: Flexible loan repayment using collateral assets through VeloraDEX swaps - **Auto-Deleverage**: Automated protection against full liquidation through passive position management All features are accessible through Morpho's Bundler3 system, enabling single-transaction execution. Users should note increased exposure carries higher liquidation risks. [Start using these features](https://app.morpho.org/ethereum/borrow)

Morpho announces a significant upgrade with V2, transitioning from their V0 platform. The new version introduces an intent-driven lending system featuring: - Fixed-rate, fixed-term loans - Enhanced onchain loan capabilities - Streamlined lending processes The upgrade represents a strategic evolution from Morpho's previous role as a lending pool optimizer for Compound and Aave. V2 aims to provide more efficient and flexible lending solutions while maintaining robust security measures. [Learn more about Morpho V2](https://morpho.org/blog/morpho-v2-liberating-the-potential-of-onchain-loans/)

Morpho Association announced the final phase of deprecating its Optimizer products, which improved capital efficiency on existing lending protocols. After reaching $2B in deposits, Morpho evolved beyond being an optimization layer to launch Morpho V1 in 2024. Key updates: - Frontend support ends September 7, 2025 - Migration tool will help users move to Morpho V1 - Direct contract interaction via Etherscan will remain available Morpho V1 has grown to: - $7B in total deposits - 20+ active curators - Presence on 20 chains - Integration with Coinbase ($520M+ in BTC-backed loans) Users should prepare to migrate their positions before the September deadline.

Morpho has launched a Conditional Funding Market in collaboration with Butter Markets, specifically for Unichain grants. This development follows significant ecosystem growth, including: - Compound Finance building on Morpho - SeamlessFi migrating from Aave V3 fork - Integration with Telegram via tacbuild - New vault risk disclosures through Credora Network The market is accessible through [Butter Markets platform](https://app.butter.markets/market/fjngcoqscrmfvy6y/0x472953c65c2b2b43d1df9b98a1f54faaab6c18e5).