Coinbase launches crypto-backed loans powered by Morpho in its main app!
This is the largest-scale DeFi integration ever, with far-reaching implications for the future of DeFi, Crypto, and the entire financial industry.
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1/ Crypto-backed loans on Coinbase, powered by Morpho.
Borrow USD with Bitcoin collateral, directly within the Coinbase main app.
Feels like a web2 product (no gas/chain/wallet) but with the full power of onchain infrastructure (liquidity, efficiency, collateral guarantees)
2/ Mass consumer meets DeFi
For the first time ever, a large scale consumer app directly integrates a blockchain network to offer financial services. As outlined in @FortuneMagzine a few days ago:
- Fintechs/Exchanges in the front.
- DeFi in the back.
How token incentives can actually slow down DeFi ecosystem growth
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I never read long threads so I’ll be quick:
1/ Too much focus on token design rather than mechanism design. 2/ Incentives conceal actual innovation. 3/ Some mechanisms weirdly rely on incentives. 4/ What can we do about it?
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After discussing it with many VCs, a lot of DeFi founders' attention has been on token designs lately (and how to pump a protocol) rather than improving primitives themselves.
Why? Most DeFi users are farmers: incentives make founders feel like they found product market fit.