# The Morpho Effect: January 2025 By [Morpho](https://paragraph.com/@morpho) · 2025-02-05 --- A monthly digest of what's happening in the Morpho Ecosystem. TLDR: ----- 🔹 Coinbase crypto-backed loans are powered by Morpho 🔹 Morpho core contracts are deployed across multiple new chains 🔹 Bundler3 is now available as a public good 🔹 Highlights from the Morpho Ecosystem **Highlights of the Month** --------------------------- ### **Coinbase introduced crypto-backed Loans powered by Morpho** [![User Avatar](https://storage.googleapis.com/papyrus_images/5c1d7bab69176b942910d3750e4884c21f17680c13027b7dec89f307f12bb6b5.jpg)](https://twitter.com/MorphoLabs) [Morpho 🦋](https://twitter.com/MorphoLabs) [@MorphoLabs](https://twitter.com/MorphoLabs) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/MorphoLabs/status/1879903267146309805) Crypto-backed loans on [@coinbase](https://twitter.com/coinbase) powered by Morpho. Now, millions of users can borrow against their BTC on Coinbase. ![](https://pbs.twimg.com/amplify_video_thumb/1879903187009974272/img/Bgb1BW8BN95l_rx0.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 2,380](https://twitter.com/MorphoLabs/status/1879903267146309805)[ 8:47 AM • Jan 16, 2025 ](https://twitter.com/MorphoLabs/status/1879903267146309805) This marks the first time a large-scale consumer application serving millions of users has directly integrated DeFi infrastructure to power its core financial services. The integration is built on Morpho Markets. Specifically, it taps into the cbBTC/USDC market on Morpho. Here is the announcement from Coinbase, and how easy it is to get an onchain loan via the Coinbase App: [![User Avatar](https://storage.googleapis.com/papyrus_images/ba1e5a02fef3c6b2276076fd0db4587dce3b352490ee647ee0ac9a63c151f5ef.png)](https://twitter.com/coinbase) [Coinbase 🛡️](https://twitter.com/coinbase) [@coinbase](https://twitter.com/coinbase) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/coinbase/status/1879902782163193977) It takes less than a minute to get a loan. Get started on the Coinbase app. ![](https://pbs.twimg.com/tweet_video_thumb/Gha5AL3XQAAaGKJ.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 366](https://twitter.com/coinbase/status/1879902782163193977)[ 8:45 AM • Jan 16, 2025 ](https://twitter.com/coinbase/status/1879902782163193977) Crypto-backed loans are progressively rolling out to Coinbase users. Currently, the integration has facilitated $2.5M in USDC loans with close to $5M in cbBTC collateral. ![](https://storage.googleapis.com/papyrus_images/662da86734111e48b460f2e5f0552ed90befcb4e70f74adba60f74cbd331673c.png) ### **Morpho Everywhere** The first batch of Morpho core contracts has been deployed on Polygon POS, World Chain, Ink, Arbitrum, Scroll, Fraxtal, and OP Mainnet. These deployments are infrastructure-only, meaning they won't initially be supported on the Morpho App or receive MORPHO rewards. Independent contributors on these chains are encouraged to build on Morpho, following models similar to Moonwell on Base. Builders can operate under their own brands, pursue chain-specific grants, and apply for MORPHO grants to drive growth. [![User Avatar](https://storage.googleapis.com/papyrus_images/5c1d7bab69176b942910d3750e4884c21f17680c13027b7dec89f307f12bb6b5.jpg)](https://twitter.com/MorphoLabs) [Morpho 🦋](https://twitter.com/MorphoLabs) [@MorphoLabs](https://twitter.com/MorphoLabs) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/MorphoLabs/status/1884617560865607688) Morpho Everywhere ![🦋](https://abs-0.twimg.com/emoji/v2/72x72/1f98b.png) Morpho contracts are now deployed on Polygon POS, World Chain, Ink, Arbitrum, Scroll, Fraxtal, and OP Mainnet. More deployments coming soon. ![](https://pbs.twimg.com/amplify_video_thumb/1884617536710557696/img/Y6KUFzNf0IJBT86n.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 399](https://twitter.com/MorphoLabs/status/1884617560865607688)[ 9:00 AM • Jan 29, 2025 ](https://twitter.com/MorphoLabs/status/1884617560865607688) ### **Introducing Bundler3** Morpho Labs introduced Bundler3 - an open-source contract that lets users batch any onchain actions in one click, with any wallet they may have (including EOAs). Bundler3 is available as a public good. Here is an introduction of Bundler3 and how it works: [![User Avatar](https://storage.googleapis.com/papyrus_images/5c1d7bab69176b942910d3750e4884c21f17680c13027b7dec89f307f12bb6b5.jpg)](https://twitter.com/MorphoLabs) [Morpho 🦋](https://twitter.com/MorphoLabs) [@MorphoLabs](https://twitter.com/MorphoLabs) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/MorphoLabs/status/1882443500610035924) Watch how the Bundler3 can enable an EOA to perform a series of simple to complex actions, including callback flows, in a single transaction ![👇](https://abs-0.twimg.com/emoji/v2/72x72/1f447.png) ![](https://pbs.twimg.com/amplify_video_thumb/1882443483916783616/img/JIZKJ_c4zBeuo8OC.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 52](https://twitter.com/MorphoLabs/status/1882443500610035924)[ 9:01 AM • Jan 23, 2025 ](https://twitter.com/MorphoLabs/status/1882443500610035924) **Ecosystem Highlights** ------------------------ Morpho is a permissionless financial infrastructure - many teams are building their specific use cases on top of Morpho. Here are a few to highlight from the past month: 1. [![User Avatar](https://storage.googleapis.com/papyrus_images/3b619d87244bb6c89da8aa0db1f1c5254e1b079a0afbc3accb7dd5b3ff4b7f21.jpg)](https://twitter.com/pauljlei) [Paul](https://twitter.com/pauljlei) [@pauljlei](https://twitter.com/pauljlei) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/pauljlei/status/1885436590761058612) Compound brought us DeFi summer. The DAO is making moves once again The lending landscape is changing. With infra becoming shared, competitive advantages are shifting to user trust, partner integrations, and active management of liquidity Compound user loyalty, [@MorphoLabs](https://twitter.com/MorphoLabs) ![](https://storage.googleapis.com/papyrus_images/784dee59c95990beae8f94c75f4ac7da9e23afddb4b3ed980da4bad1df2b74b7.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 120](https://twitter.com/pauljlei/status/1885436590761058612)[ 3:14 PM • Jan 31, 2025 ](https://twitter.com/pauljlei/status/1885436590761058612) 2. [![User Avatar](https://storage.googleapis.com/papyrus_images/70b1a4c6f89a893efb8fffcbf100962dff71e51e5b530533ff3eb135eb360b78.jpg)](https://twitter.com/MurrLincoln) [lincoln.base.eth](https://twitter.com/MurrLincoln) [@MurrLincoln](https://twitter.com/MurrLincoln) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/MurrLincoln/status/1882433567961342177) AgentKit is quickly growing to support a comprehensive set of actions on [@base](https://twitter.com/base) . We’ve added [@MorphoLabs](https://twitter.com/MorphoLabs) vault deposit, NFT get balance/transfer, wrap ETH, more soon. Builders and protocols: submit a PR to the AgentKit repo and get your action in front of 10,000+ agents. ![](https://pbs.twimg.com/ext_tw_video_thumb/1882432701942157312/pu/img/UJVvEAz_SS78cwKm.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 136](https://twitter.com/MurrLincoln/status/1882433567961342177)[ 8:21 AM • Jan 23, 2025 ](https://twitter.com/MurrLincoln/status/1882433567961342177) 3. [![User Avatar](https://storage.googleapis.com/papyrus_images/74336c23d249de86aba1967d1bc80ea442b1ed3d97f5f7f1ff887fdb867e54f9.jpg)](https://twitter.com/BrahmaFi) [Brahma](https://twitter.com/BrahmaFi) [@BrahmaFi](https://twitter.com/BrahmaFi) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/BrahmaFi/status/1881387071774048390) "Get me the highest Morpho APY using only [@gauntlet\_xyz](https://twitter.com/gauntlet_xyz) & [@Re7Capital](https://twitter.com/Re7Capital) vaults, 7.5%+ APY, daily rebalance" Your AI agent executes this 24/7, automatically. Introducing the [@MorphoLabs](https://twitter.com/MorphoLabs) Agent alpha on [@base](https://twitter.com/base), built on ConsoleKit - DeFAI Agents are here. [earn.brahma.fi](https://t.co/vSGYN0MFQ3) ![](https://storage.googleapis.com/papyrus_images/891e3544c3d2833548a32fc0a9d7935e6f340eb650a0350e510b760ecce523a8.png) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 1,582](https://twitter.com/BrahmaFi/status/1881387071774048390)[ 11:03 AM • Jan 20, 2025 ](https://twitter.com/BrahmaFi/status/1881387071774048390) 4. [![User Avatar](https://storage.googleapis.com/papyrus_images/5c1d7bab69176b942910d3750e4884c21f17680c13027b7dec89f307f12bb6b5.jpg)](https://twitter.com/MorphoLabs) [Morpho 🦋](https://twitter.com/MorphoLabs) [@MorphoLabs](https://twitter.com/MorphoLabs) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/MorphoLabs/status/1882069857963008395) Balancer's Boosted Pools now tap into Morpho Vaults to generate additional rewards for its Liquidity Providers. [![User Avatar](https://storage.googleapis.com/papyrus_images/28ef6e6389ee4483fee5cdd5d1e28463f30862599d4f0d6cc2082264bb82132d.jpg)](https://twitter.com/Balancer) [Balancer](https://twitter.com/Balancer) [@Balancer](https://twitter.com/Balancer) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/Balancer/status/1882065965581779071) 1/ Why limit yourself to swap fees when you could BOOST rewards further with exposure to lending market rewards? Powered by [@MorphoLabs](https://twitter.com/MorphoLabs), DeFi users just unlocked a major yield-generation upgrade. ![⬇️](https://abs-0.twimg.com/emoji/v2/72x72/2b07.png) ![🧵](https://abs-0.twimg.com/emoji/v2/72x72/1f9f5.png) ![](https://storage.googleapis.com/papyrus_images/59dd9f979d94780eda0ce0599e759c2e4d25aee400935fdfdd2ac2a127ba256b.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 86](https://twitter.com/MorphoLabs/status/1882069857963008395)[ 8:16 AM • Jan 22, 2025 ](https://twitter.com/MorphoLabs/status/1882069857963008395) 5. [![User Avatar](https://storage.googleapis.com/papyrus_images/84ad69f86434ad497138174b592bffc442779d266f3768c5980b280b13f5b3f2.jpg)](https://twitter.com/DeFiSaver) [DeFi Saver](https://twitter.com/DeFiSaver) [@DeFiSaver](https://twitter.com/DeFiSaver) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/DeFiSaver/status/1881734085573284173) Based on continued community requests, Boost on Target Price is now live for Morpho! With Boost on Target Price, you can set a threshold price for your collateral, and once met, your position will automatically leverage up (aka Boost) to your configured Safety Ratio, allowing you ![](https://storage.googleapis.com/papyrus_images/ce79a9d20ca7ee9d2d23e61631229c75c97bece0c3dde42c698ab9ff7a59eeda.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 25](https://twitter.com/DeFiSaver/status/1881734085573284173)[ 10:02 AM • Jan 21, 2025 ](https://twitter.com/DeFiSaver/status/1881734085573284173) 6. [![User Avatar](https://storage.googleapis.com/papyrus_images/7b5c045eea685a8ab5974e155504c092e310cd86a356e4f38ccbf4eba623cb60.jpg)](https://twitter.com/SeamlessFi) [Seamless Protocol](https://twitter.com/SeamlessFi) [@SeamlessFi](https://twitter.com/SeamlessFi) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/SeamlessFi/status/1881431480196333994) Builders of [@base](https://twitter.com/base), Baldmas is here ![🧑‍🦲](https://abs-0.twimg.com/emoji/v2/72x72/1f9d1-200d-1f9b2.png), and Seamless is lighting the way with a brand new USDC Vault on @morpholabs curated by [@gauntlet\_xyz](https://twitter.com/gauntlet_xyz)! ![🕯️](https://abs-0.twimg.com/emoji/v2/72x72/1f56f.png) This isn’t just another vault—it’s the start of a new era, surrounding efficient markets on Base. Highlights of this new vault: ![🔹](https://abs-0.twimg.com/emoji/v2/72x72/1f539.png) ![](https://storage.googleapis.com/papyrus_images/ca68c6105b117d41b8a6500741a94a5e5c5c845ecd916e07f58cb4561fe45753.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 136](https://twitter.com/SeamlessFi/status/1881431480196333994)[ 1:59 PM • Jan 20, 2025 ](https://twitter.com/SeamlessFi/status/1881431480196333994) 7. [![User Avatar](https://storage.googleapis.com/papyrus_images/cd583bfe434e5cb1d087046065d48119f45982f02f5aa087b026f547b7ea51d0.jpg)](https://twitter.com/balmy_xyz) [Balmy](https://twitter.com/balmy_xyz) [@balmy\_xyz](https://twitter.com/balmy_xyz) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/balmy_xyz/status/1881416605281747266) 1/2 EARN GUARDIAN'S INCENTIVES START THIS THURSDAY (23rd)!! ![🔥](https://abs-0.twimg.com/emoji/v2/72x72/1f525.png) ![💰](https://abs-0.twimg.com/emoji/v2/72x72/1f4b0.png)$70,000 in [@axelar](https://twitter.com/axelar) bridged OP rewards are waiting for you in two [@MorphoLabs](https://twitter.com/MorphoLabs) vaults on [@base](https://twitter.com/base): ![1️⃣](https://abs-0.twimg.com/emoji/v2/72x72/31-20e3.png) [@MoonwellDeFi](https://twitter.com/MoonwellDeFi)'s Flagship $ETH ![2️⃣](https://abs-0.twimg.com/emoji/v2/72x72/32-20e3.png) [@gauntlet\_xyz](https://twitter.com/gauntlet_xyz)’s $USDC Prime Watch how to use Earn Guardian and climb the tiers to ![](https://pbs.twimg.com/ext_tw_video_thumb/1881415624808615936/pu/img/dvyRhXuKTx9KrDmc.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 16](https://twitter.com/balmy_xyz/status/1881416605281747266)[ 1:00 PM • Jan 20, 2025 ](https://twitter.com/balmy_xyz/status/1881416605281747266) 8. [Resolv Labs](https://x.com/ResolvLabs/status/1876739725090001030), [Stakestone](https://x.com/Stake_Stone/status/1876946809211306220), [Kelp DAO](https://x.com/KelpDAO/status/1874881561302372693) and [Level](https://x.com/levelusd/status/1879182919547429055) now have new Morpho Markets. 9. [![User Avatar](https://storage.googleapis.com/papyrus_images/41bbcddf12265c6ea022f2d087e8d6876a45bd792cdba0426e9e77bf3fbbb705.png)](https://twitter.com/avantisfi) [Avantis](https://twitter.com/avantisfi) [@avantisfi](https://twitter.com/avantisfi) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/avantisfi/status/1881376022421209529) Multi-collateral USDC borrowing is now live on Avantis, powered by [@MorphoLabs](https://twitter.com/MorphoLabs)![🦋](https://abs-0.twimg.com/emoji/v2/72x72/1f98b.png). Unlock more USDC with your idle BTC or ETH directly within Avantis. Trade more, increase your vault deposits and maximize your XP. Here's what this integration enables for our LPs and traders.![🧵](https://abs-0.twimg.com/emoji/v2/72x72/1f9f5.png) ![](https://pbs.twimg.com/ext_tw_video_thumb/1881375366494797824/pu/img/UInP8k91QT-p5xWS.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 122](https://twitter.com/avantisfi/status/1881376022421209529)[ 10:19 AM • Jan 20, 2025 ](https://twitter.com/avantisfi/status/1881376022421209529) 10. [![User Avatar](https://storage.googleapis.com/papyrus_images/d4430807ebcd275f17842aff6c39c0b808cd357aa675fb34ad3d5e68ea03de16.jpg)](https://twitter.com/indexcoop) [Index Coop 🎟️](https://twitter.com/indexcoop) [@indexcoop](https://twitter.com/indexcoop) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/indexcoop/status/1879578080781771256) We're Upgrading hyETH with @Gauntlet\_xyz & [@MorphoLabs](https://twitter.com/MorphoLabs) Same methodology targeting high ETH yields, new flexible infra \- Significantly reduced issuances costs \- Boosted yields via compounded rewards \- No action required for hyETH holders Learn why we're migrating ![⤵️](https://abs-0.twimg.com/emoji/v2/72x72/2935.png) ![](https://storage.googleapis.com/papyrus_images/d02ce44ad94d0182201c8e5ee213d760b15c75fd20105653283f7acc795ab9c6.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 32](https://twitter.com/indexcoop/status/1879578080781771256)[ 11:15 AM • Jan 15, 2025 ](https://twitter.com/indexcoop/status/1879578080781771256) --- *Originally published on [Morpho](https://paragraph.com/@morpho/the-morpho-effect-january-2025)*