DeFi is maturing - and Morpho V2 is a signal. @MorphoLabs's latest upgrade marks a shift from retail-first lending to infrastructure built for institutions. Here’s why that matters: Since @aave (2017) and Compound (2018), on-chain credit has grown fast - but mostly via variable-rate, permissionless lending pools. These solutions were highly effective for early crypto-native users, but they had limited appeal to institutional clients (which is precisely why Aave launched Arc in 2022) The rise of tokenised RWAs is exposing the limitations: - No fixed maturity - Unpredictable rates - Weak credit risk tools - Poor alignment with compliance Morpho V2 offers an interesting model: - Fixed-rate, fixed-term loans - P2P matching (not pools) - Tokenised RWAs as collateral - Modular markets w/ custom terms - KYC-compatible, yet non-custodial - Cross-chain credit (Base, OP, Ethereum) This isn't just a product redesign - it's a strategic transformation, as we explain in @TheBigWhale_. 👉 Morpho is positioning itself as a B2B credit infrastructure, not a consumer-facing protocol. Think: credit rails for DAOs, fintechs, and funds - not just yield-chasing users. In 2025 alone: - $300M+ in institutional loans - $500M in tokenised collateral - $359M in BTC-backed loans (via @coinbase) - $1B in deposits on @base - $4B in total value locked @PaulFrambot: "Morpho is an infrastructure for banks" Whether or not you agree, one thing’s clear: DeFi’s next growth curve may come from professional capital - not retail. As crypto infrastructure gets more B2B, protocols like Morpho may define how RWAs and on-chain finance converge.