Compound DAO greenlighted Morpho-powered lending vaults on Polygon, proposed by its major delegate. The decision has sparked debate—some see it as a strategic move to revitalize the stagnant protocol, while others view it as a shift away from Compound in favor of its competitor, Morpho.

Additionally, the project is significantly altering its security model, reducing risks for AAVE token holders, and improving capital efficiency of the protocol.

Morpho’s custom lending markets are rapidly capturing significant market share in the DeFi lending space. Its growth has not been welcomed by its leading competitor, also decentralized, Aave lending protocol.

The project's DeFi suite is quickly gaining popularity among users, with its capital-efficient lending and trading protocols rapidly increasing in TVL and trading volume.

Aave’s growth is fueled by increased leverage demand and a surge in monthly active users. The protocol is also expanding its integration with Layer 2 networks and preparing to launch a major upgrade in mid-2025.

The man who promised to "unbank" millions and created one of the worlds largest crypto lending platforms now faces up to three decades in prison after admitting to extensive market manipulation and fraud.

The positive trend is largely attributed to optimistic market sentiment, a bullish outlook, and a general “risk-on” attitude among investors.

A relatively small segment of decentralized finance aims to replicate the processes and workflows of traditional financial institutions in the digital asset realm.