Compound’s Bold Move: Vaults, Morpho, and a Dash of Drama!

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So, here we are, folks! Decentralized finance protocol Compound is strutting its stuff, ready to tango with its rival Morpho by launching some shiny new lending vaults on Polygon. Because, you know, why not add a little drama to the DeFi soap opera? 🎭

These vaults made their grand debut on March 13 at precisely 11:30 a.m. Eastern Time. Because if you’re going to launch something, it might as well be at a time that sounds important, right? ⏰

Now, this isn’t just any old launch. Oh no! It comes after a governance proposal that’s basically a love letter to Morpho (MORPHO) — a proposal that’s as exciting as a rom-com plot twist! Gauntlet and Compound (COMP) are throwing in a whopping $3 million in incentives. That’s $1.5 million from each party, which is basically like splitting the bill on a fancy dinner. 🍽️

While the DeFi community is buzzing like a caffeinated bee about this, it’s clear that Compound is making a significant pivot. They’re ditching their own tech stack for Morpho’s infrastructure. Talk about a makeover! 💅

Morpho’s co-founder and CEO, Paul Frambot, described this as a “full-circle moment.” I mean, who doesn’t love a good circle? It’s like a never-ending rollercoaster ride of finance! 🎢

“We’ve come full circle with Compound choosing to build on Morpho. Morpho started as an optimizer on top of Compound before evolving into a fully independent lending primitive. Now, Compound is transitioning to build on Morpho,” Frambot noted. Isn’t that just the sweetest thing? 💖

Back in January, Gauntlet introduced this proposal, which is basically their way of saying, “Let’s make this partnership work!” They’re hoping to improve risk controls, speed up asset listings, and create a sustainable future for Compound. Because who doesn’t want a sustainable future? 🌍

But wait, there’s more! Compound has been feeling a bit overshadowed lately, with Aave (AAVE) and Morpho stealing the spotlight. Aave’s v4 is like the new kid on the block, and it’s not helping Compound’s revenue or market size. Talk about a tough crowd! 😬

Using Morpho to generate yield has been criticized by some, but according to the governance proposal, it’s all about benefiting those lovely COMP holders. Because, let’s face it, they deserve a little love too! 💌

Compound is all set to leverage Morpho’s lending infrastructure, Gauntlet’s risk management wizardry, and Polygon PoS’s low fees and deep liquidity. It’s like assembling the Avengers of the on-chain lending world! 🦸‍♂️

And just to sprinkle a little more excitement, Morpho raised a cool $50 million in a funding round backed by Coinbase Ventures and a16z in 2024. They’re currently sitting pretty with a total value locked of over $3 billion. Meanwhile, Aave’s TVL is over $17 billion, and Compound’s is a modest $2.3 billion. But hey, every little bit counts, right? 💰

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2025-03-13 19:38