
The Morpho Effect: May 2025
Newsletter
TL;DR
🔹 Morpho’s vision refined: build an onchain system to price & settle any loan
🔹 Morpho reached $1.4B in total deposits on base
🔹 Safe{Wallet} Earn: institution-grade yield, powered by Morpho
🔹 Polygon PoS now available on the Morpho App
Highlight of the Month
The Price of Trust & Morpho's Vision
Morpho’s co-founder and CEO Paul Frambot lays out the vision for Morpho’s future:
Build an onchain system to price and settle any loan.
This requires three key elements:
🔹 creating open & competitive markets
🔹 enabling the expression of different trust assumptions
🔹 minimizing infrastructure impact on these assumptions
Institutional-Grade Yield, within the Safe{Wallet} App
Safe{Wallet}, the leading multisig wallet for institutions and enterprises, now offers a native earn product that is exclusively powered by Morpho.
Agglayer Vault Bridge, Powered by Morpho
Morpho powers the Agglayer VaultBridge, where deposited assets earn yield through vaults curated by Steakhouse, Gauntlet, and other curators on Ethereum.
Based Morpho is now 1.4B Total Deposits Strong
Morpho on Base has become the dominant lending protocol on Base, reaching over $1.4B in total deposits.

New on the Morpho App
Morpho App now supports Polygon PoS
With $180M+ in total deposits since its deployment in March, Polygon PoS is now officially supported in the Morpho App.
Morpho App Light Mode
Vault and Market Pages Refined
What Do the Numbers Say?

🔹 The DeFi Mullet continues to grow.
Coinbase crypto-backed loans have now generated over $250M in active loans.

🔹 Apollo ACRED leveraged strategy keeps growing on Morpho Polygon PoS
🔹 Deposits from Trust Wallet’s integration with Morpho now has $20M+ in TVL

🔹 Curators are a category of their own.
9 out the top 10 curators on DeFillama are curators on Morpho.


Ecosystem Updates
- LevelUSD now generates yields from Morpho Vaults curated by Steakhouse — learn why the LevelUSD team is bullish on Morpho
- Morpho has launched on Flame, Camp, and Plume
- OP and WELL incentives are now live for the OP Mainnet USDC Vault on Moonwell
- DeFi-native platforms now feature Earn options powered by Morpho
- DeFi pioneer Yearn enters the curation space
- Backed launches markets for USDC borrowing against tokenized stocks on Based Morpho
- Index Coop expands its Morpho-powered offerings with Smart Loops and uSUL & uSOL levered strategies
- Brahma launches enhanced version of its Morpho-powered DeFi AI Agent