Fintech firms will move to DeFi lending within 3 years: Morpho co-founder

Key Points

1. Fintech firms recognize that integrating DeFi is a strategic move to stay competitive, as they compete on user experience (UX) and product quality.

2. DeFi offers advantages such as no intermediaries, trust in code, and better financial products in terms of lending and borrowing compared to traditional banking.

3. Morpho is the second-largest DeFi lending protocol with over $5.5 billion in total value locked (TVL), trailing AAVE's $31 billion TVL.

4. DeFi lending reached a cumulative all-time high of $66.7 billion in TVL, with AAVE accounting for 47% and Morpho for 8.2% of the total value.

5. The shift to DeFi comes as centralized finance (CeFi) lenders like Genesis, Celsius Network, BlockFi, and Voyager faced bankruptcy in recent years.