Bell Curve Morpho: Ushering in DeFi’s Next Era | Paul Frambot
Dec 17, 2024
Paul Frambot, Co-founder and CEO of Morpho Labs, shares insights on the evolution of decentralized lending and borrowing. He discusses the innovative design of the Morpho protocol, which aims to optimize lending rates while addressing the challenges of high-interest spreads and code immutability. Frambot emphasizes the importance of simplicity in codebases to enhance security. He also explores the impact of network effects, institutional adoption of crypto, and the recent trends reshaping DeFi, including the crucial role of traditional finance in the on-chain landscape.
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Morpho's History
- Paul Frambot initially built Morpho as an optimization layer on Aave, achieving $1B in deposits.
- They transitioned to a primitive protocol due to limitations with building on Aave.
Decentralized Brokers vs. Protocols
- Aave operates like a decentralized fund, managing risk and code, offering simplicity for users but less flexibility for builders.
- Morpho prioritizes building immutable infrastructure for others to create tailored products.
Balancing Immutability and Innovation
- Immutability builds trust but can limit innovation; evolving codebases attract builders.
- Paul Frambot suggests shipping new, immutable codebases and using aggregation layers for state transitions.