DeFi lending protocols operate accordingly to their smart contracts and are perfect examples of ‘Code is law’, even if some recent exploits have not quite abided to this harsh truth. From well established protocols to degenerate DeFi farms with astronomic APYs, they all mainly use liquidity pools. Morpho Labs proposes a peer-to-peer approach that operates on top of another protocol’s liquidity pool (i.e. Aave, Compound), offering better rates for lenders as well as borrowers.

We were joined by Paul Frambot, co-founder and CEO of Morpho Labs, to discuss about the benefits and challenges that arise from a peer-to-peer lender-borrower matching system and what failsafes are in place.

Topics covered in this episode:

Paul’s background and diving into DeFi
Founding and funding Morpho
The concept behind Morpho
Improving lending & borrowing APYs
How lenders and borrowers are matched
Managing gas fees in a P2P setting
Securing collateral in peer matches
Sharing liquidity with Aave and Compound
Morpho token economy
Managing liquidations
User experience & integrations
Morpho’s business model
Future roadmap

Episode links:

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This episode is hosted by Sebastien Couture & Friederike Ernst. Show notes and listening options: epicenter.tv/480

Paul Frambot: Morpho Labs – Peer-to-Peer DeFi Lending Protocol