Morpho Labs, a DeFi lending project supported by a16z, releases Morpho Blue white paper

Odaily Planet Daily News Morpho Labs, a decentralized lending project supported by Variant and a16z, released a white paper on the new protocol Morpho Blue, which aims to provide a stronger and more efficient foundation for the decentralized lending market. Morpho Blue’s core goal is to reinvent the way decentralized lending is structured, removing the reliance on DAO participants to manage asset processing parameters and introducing a simpler alternative based on what it describes as permissionless risk management. The white paper states: “DAOs are not the best suited for operational scaling, and as protocols grow, they often become bottlenecks. What we will demonstrate is consistent with the vision that DeFi should be organized into layers around trustless and open protocols like the Internet. .” To achieve this, Morpho Blue adopts a strategy of isolating the market through individual asset pools that can operate autonomously without requiring manual intervention from a DAO to adjust risk parameters. This approach enables lenders to provide higher levels of funding to borrowers while still maintaining lower overall risk compared to multi-asset pools, as they only need to focus on the risk of one asset. In addition, Morpho Blue claims that it will reduce gas consumption by 60% compared with other lending protocols. (The Block) It was reported in July last year that DeFi lending protocol Morpho completed $18 million in financing through native token sales, led by Andreessen Horowitz and Variant, with participation from Nascent, Semantic Ventures, Cherry Crypto, Mechanism Capital, Spark Capital, Standard Crypto and Coinbase Ventures.