@abcwap
Morpho Labs is pulling drip funding from the Arbitrum DAO to build isolated lending markets that are growing faster than Aave and Compound combined on Arbitrum.
Its modular architecture lets anyone launch custom lending markets without fragmenting liquidity — a design advantage legacy monolithic protocols can’t match.
Arbitrum is using its treasury strategically to lock in top DeFi builders before Base gets serious about lending.
Morpho’s risk-isolated lending model is quietly winning where others can’t adapt.