Recently, I have had a very noticeable feeling on-chain: in the past, I had to specifically open a DeFi website, connect my wallet, select a pool, and adjust parameters to start 'making money work'; now more and more apps suddenly pop up a small button in the corner—'Activate Earnings', 'One-Click Earn Interest', 'Upgrade Your Balance'. Upon clicking, I see that most of the backend is related to Morpho. OnchainKit on Base directly provides a component called Earn to developers; anyone writing applications on Base can integrate Morpho's Vault with just a few lines of code, allowing users to easily turn on earnings for stablecoins while checking in, playing games, or completing tasks.
A more typical case is when I was looking at materials from Stable. What Stable wants to do is to 'bring every dollar on-chain', and the task passed to Morpho is very simple and straightforward: to turn all these stablecoins that have been brought on-chain into productive assets. After both sides announced their cooperation, the lending and Earn modules in the Stable ecosystem will uniformly use Morpho as the underlying interest rate engine, including what seems to be 'ordinary' interest on balances in future Stable Pay, which is essentially tying up idle USDT and USDC through Vault and the Blue market. The official summary of this relationship is — 'Stable brings money on-chain, Morpho ensures that every stablecoin no longer lies flat.' This statement is very powerful for someone like me, who calculates capital utilization every day, because it’s not just storytelling, but rewriting the interest distribution logic of the entire payment chain.
If the Stable side demonstrates 'how applications connect with Morpho', then Morpho itself has also introduced two new tools in the past few months, further lowering the 'integration threshold.' One set is the Morpho SDK, which the official explained very directly in the latest Morpho Effect: previously, integrating a lending protocol would take several weeks or even months, but now with the SDK, you can package deposits, loans, Vault, and position queries all within a few days; the other set is the OnchainKit Earn, developed in collaboration with Base, which makes 'integrating Morpho Vault' into a ready-made component, allowing front-end developers to focus on providing users with a 'switch' at the right position without worrying about on-chain details. From Azu's perspective, this is equivalent to making Morpho a 'rate operating system', where developers can simply insert a 'yield module' into their own applications to immediately activate the underlying lending network.
In this round of updates, Morpho has also clearly defined a 'professional user channel', which is Morpho Prime. You can understand the previous Morpho App as the 'consumer version for ordinary users,' while Prime is more like a 'research backend' for curators, institutional traders, and treasury managers: it has separate curation and reward interfaces that allow these professional players to design specific lending markets, interest rate ranges, and position combinations, and then deliver these opportunities to end users through Vault and integrated front ends. The official website and media emphasized one point when introducing Prime: there will be more and more 'opportunities' appearing not on Morpho's own website, but packaged into layers of products by these professional curators, scattered across wallets, exchanges, RWA platforms, and payment apps. For me, this essentially means the official admission — what Morpho wants to do is infrastructure; the truly user-facing 'product form' will become increasingly diverse.
On the rules side, Morpho has a very important change in 2025 that I care about: Pre-Liquidations. In simple terms, the logic of most lending protocols before was 'the knife falls before it cuts', meaning that positions would only be forcibly liquidated when they hit the liquidation line; now Morpho has provided developers with an open-source factory, allowing any integrator to provide users with 'risk management in advance' features on their own front end, such as automatic deleveraging, automatic liquidation, and proactively reducing positions when approaching thresholds, instead of waiting for liquidation bots to collect the corpses. The technical documentation clearly states that this pre-liquidation logic is opt-in, meaning whoever wants to use it can turn it on, and it can be packaged into various applications, from strategy platforms to CEXs, and even regular wallets. From Azu's perspective, I would understand this as 'new rules of lending': truly mature infrastructure does not just give you a cold liquidation record at the moment of a big drop, but breaks down the entire risk management process into several configurable nodes, allowing you to make choices in advance.
These changes translate into very specific practical experiences. To give an example from my own scenario: I do tasks and earn points in a small application based on Base, and I usually don't bother to move my USDC balance; now, because OnchainKit Earn has integrated Morpho Vault, I just need to check 'automatically start earning' during the first authorization, and all the USDC that comes in from subsequent task settlements will automatically enter the Vault for interest according to the set strategy, while the Vault itself may be connected to multiple Blue markets or even borrow more stablecoins against collateral like mF-ONE. In this series of actions, I only see one 'annualized range' and one 'maximum drawdown prompt,' but I understand that the interest rate actually comes from the real-time supply and demand of multiple underlying markets. For veteran DeFi players who are used to manually managing positions, this feels somewhat like being 'incorporated into the infrastructure,' but when I calculated the gas, time costs, and the opportunity cost of missing interest, it was hard to deny that this setup is more efficient.
More importantly, Morpho has also clarified the layers of 'who creates these strategies and who bears the responsibility'. After the launch of Vaults V2, each vault has clear role definitions: who is the Owner, who is the Curator, who is actually executing the strategy, and who is responsible for governance and veto power; combined with Prime's professional interface and public curator page, ordinary users can finally understand what kind of risk control system they are putting their money into before saving. For someone like Azu, who often helps friends check positions, this greatly improves communication efficiency — you no longer have to use vague phrases like 'this team is reliable, I trust them,' but can present on-chain parameters, authorizations, and voting records, allowing the other party to judge whether this is a risk structure they can accept.
From a more macro perspective, the advantages brought by this round of 'embedded Morpho' are actually not just a bit of extra yield. For ordinary users, the benefits are very direct: first, you no longer have to run around looking for 'which APY is higher', but can naturally enjoy the rates brought by Morpho through the wallets, payment products, and RWA platforms you already use; second, risk information starts to be transmitted from the bottom layer to the front end, with pre-liquidation, LLTV, and strategy explanations being packaged into easy-to-understand prompts, placed at the moment you make decisions; third, overall capital utilization rises, and the stablecoins, RWA certificates, and reward assets that were previously idle in wallets all have the opportunity to be uniformly integrated into the lending network, rather than becoming 'dead balances'. For developers and project parties, the advantage is that you can finally outsource the complex infrastructure of 'lending' and 'yield,' focusing on user experience, business logic, and compliance stories that you are truly good at.
So if you now ask Azu what this round of new dynamics from Morpho means for us on-chain users, I would give three very specific action recommendations. First, if you are already using the Base ecosystem or some wallets and apps with Earn buttons, you might as well pay attention to whether Morpho is behind it, trying out a round of 'embedded yield' with small amounts of money to see if the new rules of pre-liquidation and risk prompts suit your appetite; second, if you are a builder, you should carefully read the documentation for Morpho SDK, OnchainKit Earn, and Prime, evaluating whether using Morpho as an interest rate base can help your product go live faster and clarify risk control more easily; third, if you are involved in RWA, treasury management, or stablecoin business, it is even more necessary to break down cooperative cases like Stable for research, considering whether your assets can become new 'underlying building blocks' like mF-ONE through Morpho, which can be both collateralized and amplified. If the answer is yes, then maybe it's time for you to stop letting stablecoins 'lie flat'.
