New protocol allows lenders and borrowers to set fixed interest rates and maturities, targeting institutional demand for predictable DeFi credit.
Morpho has launched a fixed-rate lending protocol, Morpho Midnight, on the Base blockchain. The protocol enables users to propose specific interest rates, maturities, and loan terms, departing from traditional DeFi’s variable-rate models tied to pool utilization.
Fixed-rate lending remains rare in decentralized finance, where borrowing costs typically fluctuate with market demand. Traditional credit markets rely on predictable rates and terms, a feature Morpho aims to replicate to attract institutions and businesses managing funding costs in advance.
Midnight is live on Base’s mainnet, initially supporting cbBTC and USDC with multiple maturity dates. Morpho described the launch as a controlled rollout prioritizing security, with early interest from crypto-native lenders and borrowers already active on its variable-rate platform, Morpho Blue.