Crypto-Backed Loans Get Simpler with New DeFi Partnership
DeFi takes a leap closer to traditional finance. Gelato and Morpho have teamed up to launch Embedded Crypto-Backed Loans.The initiative promises a seamless心得experience for users on multiple blockchains.
Paul Frambot, CEO of Morpho Labs, highlights the partnership’s goal: making self-custodial crypto loans more accessible. “Users can now borrow USDC stablecoins using crypto like Bitcoin as collateral,” he said. this user-friendly option comes without credit checks, perfect for both retail and institutional users.
The platform features one-click borrowing with collateral and wallet creation through social logins. It’s available on popular blockchains like Polygon and Arbitrum,with plans to expand.
Crypto-collateralized loans offer liquidity without the need to sell assets. Traders can use them as leverage for trading. Though, there are risks. A significant drop in crypto prices could led to insufficient collateral and potential collapse.
Gelato and Morpho’s move aims to bridge the usability gap between DeFi and traditional platforms. It’s a sign of DeFi’s growing influence in the financial world.
