I recently learned that @coinbase lets you borrow money using @bitcoin as collateral (powered by Morpho). This led me down the @MorphoLabs rabbit hole and I was surprised to learn that there's a lot I didn't know about them. Morpho is basically a coordination platform for lenders and borrowers. Think of it like a big, open pool of money on the blockchain. Different companies and people can participate on the platform to lend and borrow money. In the case of Coinbase, instead of building out their own lending/borrowing product, they simply wrap your Bitcoin into a special token, send it to Morpho, borrow US dollars from Morpho, and give you the money. This allows Coinbase to: 1/ Offer better interest rates because Morpho connects lots of lenders and borrowers, so there's more money available. 2/ Offer this new lending service without having to build out their own system (composability), and 3/ not require a full banking license to offer lending (which it doesn't have and would...
Crypto-backed loans on @coinbase powered by Morpho.
Now, millions of users can borrow against their BTC on Coinbase.
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