Morpho, a crypto-lending protocol founded by Paul Frambot, has successfully raised $50 million in a strategic funding round led by Rabbit Capital. The round saw participation from notable investors including a16z crypto, Coinbase Ventures, and Pantera. Launched in 2022, Morpho has rapidly ascended to become the fifth-largest lending protocol by total value locked (TVL), according to DeFiLlama, with a TVL of $1.74 billion.
Morpho's primary product, Morpho Blue, allows investors to earn yield by depositing into a marketplace vault, while offering borrowers low borrowing costs and higher liquidation loan-to-value (LLTV) rates. The platform supports Ethereum and Base blockchains, ranking fourth and second respectively in terms of TVL.
The protocol has facilitated over $1.6 billion in deposits and more than $600 million in loans. Morpho also enables other crypto companies to design lending and borrowing use cases without fragmenting liquidity. Frambot emphasized the importance of bridging the gap between DeFi and traditional fintech, highlighting potential integrations with real-world applications.