According to The Block, DeFi lending protocol Morpho Labs has released a white paper for a 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 goal, 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.
According to previous news in July, Morpho completed US$18 million in financing, led by a16z and Variant .
