Morpho Expands Fixed-Rate Midnight Markets to Ethereum

Morpho on Sept. 8 deployed its Midnight fixed-term, fixed-rate lending product on Ethereum, introducing USDC markets collateralized by WBTC and cbBTC. The rollout brings the fixed-rate offering that was available on Base to Ethereum users and will expand progressively, the protocol's co-founder Merlin Egalite said.

At the time the Ethereum-filtered Markets page was captured, it showed $7.41 million in total deposits and $2.63 million in loans outstanding. The retained output did not include the individual market rows, so those aggregate figures could not be split between the two new markets.

Midnight differs from Morpho Blue by offering rate certainty. Blue provides open-ended loans whose interest rates shift according to a formula, while Midnight issues credit units for fixed maturities that trade at market-set prices. Lenders purchase those units below their one-to-one redemption value and lock in returns in advance; because each trade price sets the rate for that lender, different lenders in the same market can realize different yields.

The launch does not yet open Midnight to Morpho Vaults, the protocol’s curated deposit vehicles that currently hold about $5 billion. CEO Paul Frambot said enabling vault allocations would require a single DAO transaction but that the team prefers to let curators and users gain familiarity and supporting tools to mature first. Morpho expects to enable vault activation in the fourth quarter; until the DAO acts, the Ethereum Midnight markets must draw capital through direct offers rather than from the protocol's existing vault deposits.