0/ How the DeFi Mullet will bring the benefits of Ethereum to billions of real users.

A guest thread by @paulframbot from @morpho.

Earn, Borrow, Build on Morpho 
/morpho and app.morpho.org

Co-founder & CEO at @morpho labs. Making financial infrastructure a public good.

The universal platform for crypto, blockchain apps, stablecoins & decentralized tech. An account about the Ethereum ecosystem maintained by @ethereumfndn.

1/ Today, fintech companies own their distributions, but not the financial infrastructure their apps are built on.

They rely on legacy infrastructures that are expensive, inefficient, and difficult to integrate into their backends.

2/ With the ‘DeFi Mullet’, Ethereum helps solve these challenges. 

🔹User-friendly fintech apps ‘in the front’
🔹Ethereum DeFi infrastructure ‘in the back’

3/ Ethereum’s DeFi Mullet offers Web2 & fintech apps:

🔹Efficiency
🔹Easy & flexible integrations
🔹Transparency
🔹End-to-end control

4/ Efficiency

All distributions connect and aggregate every financial opportunity to a single backend: Ethereum.

With open intents and settlement, markets become hyper-efficient, offering the best prices to consumers.

5/ Ease of Integration

🔹 DeFi is permissionless & modular, offering great customization
🔹 Mature tooling makes DeFi integration plug-and-play
🔹 Open code further compounds network effects

Fintechs can build and launch scalable financial products in weeks, not years.

6/ Transparency

DeFi’s auditable architecture fosters trust better than any traditional infrastructure — a major opportunity for fintechs competing with legacy banks.

No more FTX-like scenarios — you can audit the health of financial products in real time

7/ Immutability means control

Building on immutable DeFi infrastructure on Ethereum gives fintechs more control.

No reliance on third parties. No custody risks.
 
Fintechs have end-to-end ownership over their tech stack, and worry less about platform risks.