Morpho Raises $18M Co-led by a16z and Variant to Transform Decentralized Lending!

12 Jul 2022
Paul Frambot

Today, we are thrilled to announce that Morpho has raised $18M from a16z Crypto and Variant, with participation from 80 additional investors, including advisors, founders, builders, and power users. This is a huge step forward in taking decentralized lending to the next level.

formal verification

Taking decentralized lending to the next level.

Morpho introduces a groundbreaking lending protocol that combines the current liquidity pool model used in Compound or AAVE with the capital efficiency of P2P matching engines used in order books. Morpho-Compound improves Compound by providing the same user experience, the same liquidity, and the same liquidation parameters but with enhanced APY thanks to peer-to-peer matchings.

“Over the course of the past 3 years, decentralized lending protocols have shown incredible promise, as they have facilitated billions of dollars in loans and have been battle-tested in the face of extreme market conditions. However, despite their successes to date, these protocols still don't offer the most competitive rates to users. This is a major unsolved problem. Morpho is a brand new type of lending primitive that directly matches suppliers and borrowers and sits directly on top of lending pools like Aave and Compound, unlocking rates that are competitive both on and off-chain. If successful, we believe it has the potential to become a go-to coordination layer of a new global and decentralized financial system.”— Spencer Noon, General Partner at Variant Fund.

Morpho-Compound has been live for a few weeks and has already accumulated $30M of liquidity. You can start using Compound through the Morpho-Compound optimized gateway right now.

Morpho-Aave will be launched in the coming weeks. Follow Morpho Labs Twitter account to be kept informed!

Optimal lending for all

Our focus with Morpho is to bring the most efficient, unbiased, and secure lending services to anyone who needs them. By improving the native yields, we believe Morpho can enhance the current state of DeFi and extend its reach to much broader horizons.

To continue to work in this direction, we must unite a community of committed contributors worldwide. That is why we founded the Association for the development of Morpho DAO, to pursue the development, adoption, and decentralization of Morpho. This shareholder-free entity holds the intellectual property of the protocol and the funds raised. It embodies the vision of building Morpho as a common good, developed by and for all.

Sourcing much more than capital

We raised this round with a strong belief that an investor should not be a mere source of capital but a faithful supporter of the Morpho DAO. That is why each fund or angel participating in this round was also chosen for the added value they could bring Morpho. The breadth and diversity of this round are a fundamental asset to bringing efficient lending services to all.

We are truly honored by this renowned group of investors' confidence in Morpho. Here is the complete list of participants:

Funds & Angels Collectives

  • a16z
  • Variant
  • Nascent
  • Semantic Ventures
  • Cherry Ventures
  • Mechanism Capital
  • Spark Capital
  • Standard Crypto
  • Coinbase ventures
  • Daedalus Angels
  • Stake Capital
  • Re7
  • Angel DAO
  • Atka Capital
  • Faculty Capital
  • Nima Capital
  • Fasanara
  • Spaceship DAO
  • GCR
  • Project A
  • Cryptoast
  • Alven
  • xAnge
  • Daphni
  • TLC
  • Templiers

Founders and builders

  • Joey Santoro
  • FEI Brianna Montgomery
  • FEI Fernando Martinelli
  • Balancer James Simpson
  • mStable Aseem Sood
  • Uniswap Nicolas Bacca
  • Ledger Jai Bhavnani
  • Rari — Fuse William Bergamo
  • Iddle Finance Nicholas Tong
  • Perp Scott Lewis
  • DefiPulse — Slingshot — Code4rena Pablo Veyrat
  • Angle Hadrien Charlanes
  • Sismo Will Price
  • Locke Angelo Min
  • Degenscore Frederic Montagnon
  • Arianee Julien Romanetto
  • Arianee Itamar Lesuisse
  • Argent Sebastien Couture
  • Epicenter Pascal Tallarida
  • Jarvis Network Benjamin Simon
  • Locke Protocol Thomas de Phuoc
  • Kiln Emiliano Bonassi
  • Rentable Olivier Chevillon
  • Dfi Labs Patrick Bucquet
  • Coqnut

Power Users

  • Philippe Honigman
  • Nathan Sexer
  • Stefano Bernardi
  • Lily Liu
  • Yuriy Myronovich
  • John Lilic
  • Pierre Laurent
  • Ivailo Jordanov
  • Luka Sucic
  • Nemanja Cerovac
  • Nicolas Feignon
  • Valentin Mihov
  • Dydymoon
  • Federico Nitidi
  • Gabriel Rebibo
  • Thomas Klocanas
  • Roshun Patel
  • Ashwin Ramachandran
  • Didier Valet
  • Vishesh Choudhry
  • Jean Brasse
  • Nicolas Steegmann
  • Théo Rochaix
  • Eduardo Ronzano
  • Manu Red Pills
  • Nicolas Debock
  • Thomas Turelier
  • Jason Novack
  • Laurent Benichou
  • Yassine Hargane
  • Phoebe Beigbeder
  • Remi jansseune
  • Tom Reppelin