How DeFi lending actually works (with Paul Frambot, cofounder and CEO of Morpho Labs)

Morpho is a non-chain lending and borrowing infrastructure that allows people to earn yield or take loans on-chain in an open way. Paul Frambot explains that Morpho aims to create a more efficient and open financial system by operating on a single database (like Ethereum) rather than the current fragmented system of numerous banks and credit unions. This approach seeks to reduce the need for intermediaries and promote fairer competition, ultimately benefiting consumers through lower rates and broader access to personalized financial services. Frambot notes that while traditional finance institutions require significant education about DeFi, asset managers have shown impressive speed in adopting these concepts, while banks lag due to regulatory constraints. He also sees a significant opportunity for a Euro-denominated stablecoin to gain traction, particularly if it offers yield.