Crypto.com users are about to lend wrapped crypto assets and earn produce to Stablecoins through Morpho, a decentralized financial lending protocol (DEFI).
According to a statement on Thursday, Morpho will launch Stablecoin Lending Markets in the Cronos Blockchain, along with the first vault expected this year. Integration will allow users to deposit wrapped ether (Eth) or bitcoin (Btc) in Morpho vaults and borrow stablecoins against them to earn yield.
Wrapped possessions are tokens that represent another cryptocurrency in another blockchain. In Cronos, wrapped tokens such as CDCETH and CDCBTC Mirror ETH and BTC, allowing users to bring value to the network and access defi lending markets without leaving the chain.
Merlin Egalite, co-founder of Morpho, told Cointelegraph the goal was to provide “a trustworthy user experience, with a defi infrastructure in the background.” The protocol will be integrated directly on the Crypto.com platforms, making the lending features accessible to platform users.
Morpho, who matches lenders and borrowers at the top of platforms such as Aave and Compound, has become the second largest defi lending protocol, with a total amount locked around $ 7.7 billion, according to Delete.
Egalite also confirmed that the protocol will be accessible to US users. While the Genius Act prohibits stablecoin who provided stablecoin from paying reserves directly to holders, “lending a stablecoin and producing the yield is a separate activity, independent of the giver, so the restriction does not apply,” he said.
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Genius Act leaves questions around the stablecoin yield
The cooperation between morphos and Crypto.com Just a few weeks after a similar integration between Morphos and the US Crypto Exchange Coinbase.
On September 18, Coinbase announced it Integration of Morpho Lending Protocol Directly to its app with vaults managed by the Defi Advisory Company Steakhouse Financial. Like Crypto.com Integration, the feature gives users to lend the USDC (USDC) without leaving the platform for external defi services or wallets.
According to Coinbase, the new integration will provide users to accessing onchain lending markets and earn potential yield of up to 10.8%Significantly higher than the current 4.5% APY on the rewards provided for handling the USDC on the platform.
A few days later, the CEO of Coinbase, Brian Armstrong, said the company was aimed at becoming a Full crypto service “Super App,” And ultimately change people’s needs for traditional banks.
Not surprisingly, the banks are pushing back. In August, the Bank Policy Institute (BPI) and several United States financial institutions wrote a letter to the US Congress that drives them Close stablecoin loopholes That they claim to allow Stablecoin readers to compete with banks without equivalent supervision. According to the letter, failing to do so can remove nearly $ 6.6 trillion in deposits from the US banking system.
On September 16th, Coinbase called allegations on banks False in a blog post, stating that there is no evidence that the growth of Stablecoin has led to deposits of deposits to local banks. The Post said:
“The institutions that now warn ‘systemic risk’ are the same pockets of ten -ten -billion -billions from card processing fees, which stablecoins can avoid.”
Although the Genius Act.
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