Crypto.com just announced they’re hooking up with Morpho, which is the second biggest DeFi lending protocol out there, to bring lending and stablecoin yields directly to their Cronos blockchain. This is a pretty big move that’ll let users earn interest without having to jump through a bunch of hoops or use multiple platforms.
The whole thing works by letting people deposit wrapped versions of Bitcoin and Ethereum on Cronos, then borrow stablecoins against those deposits to generate yield. Wrapped assets are basically tokenized versions that let you use Bitcoin or Ethereum on different blockchains without having to bridge your actual coins across networks.
What makes this interesting is that it’ll all happen right inside Crypto.com’s regular interface. You won’t need separate wallets or have to navigate confusing DeFi protocols on your own. Morpho’s co-founder said they’re trying to make the whole experience smooth while keeping everything decentralized under the hood.
Morpho has over $7.7 billion locked up in their protocol right now, which puts them second in the DeFi lending space. They basically match up lenders and borrowers across different protocols like Aave and Compound to optimize interest rates through peer-to-peer connections.
Here’s something that caught my attention – US users will actually be able to access this despite that Genius Act that got passed in July banning stablecoin issuers from paying yield directly. Apparently lending stablecoins is legally different from getting reserve yields, so they found a workaround.
This comes right after Morpho integrated with Coinbase a couple weeks ago, letting users lend USDC for yields up to 10.8%, which absolutely crushes the standard 4.5% USDC rewards.
Conclusion
Crypto.com partnered with Morpho to launch DeFi lending on Cronos, allowing users to deposit wrapped BTC and ETH to borrow stablecoins and earn yields directly on-platform.
Also Read: MEXC Joins Forces With Falcon Finance
