Spool DAO and Morpho Labs are taking their partnership to the next level, building on a foundation that took shape when Josh Bate from Spool hosted an AMA with Paul Frambot, CEO of Morpho Labs in 2022. Since then, we have worked together to introduce Morpho-Aave strategies in Spool Smart Vaults.

A Growing Partnership

This partnership is now moving forward with the introduction of Spool V2. Morpho is a leading platform in the DeFi space offering an efficient and flexible way to supply and borrow assets on Ethereum, combining peer-to-peer lending’s benefits with the adaptability of lending pools like Aave. For Morpho, just like for Spool, the safety and security of investors are top priorities.

Morpho stands as the third-largest lending platform on Ethereum, boasting over $1.5 billion in deposited assets. In October 2023, they released the whitepaper and code for “Morpho Blue,” a new lending primitive that enables permissionless market creation.

One of their key innovative products built using Spool V2 is the “Diversified Morpho Vault” which operates with 0% management and performance fees.

This vault makes it simpler for users to diversify their DAI investments without an owner, truly a “common good”. This Vault contains two Morpho strategies, Morpho-CompoundV2 DAI, and Morpho-AaveV2 DAI, both very appealing to DeFi investors and combined to give lower risk through diversification in a single Smart Vault.

Future Directions

This partnership underscores Spool’s role in providing infrastructure that allows institutions to easily create custom products using the best DeFi options, like those offered by Morpho, without needing deep technical DeFi knowledge. The “Diversified Morpho Vault” is now available for investment in the Spool dApp, and the Morpho strategies are available for anyone to add to new Smart Vaults.

This collaboration between Spool DAO and Morpho Labs is more than just a business partnership; it’s a step forward in making DeFi more accessible and secure for everyone.

To find out more about Spool DAO and our V2 release, visit Spool.fi.

About Spool

Spool is a permissionless DeFi platform that connects Capital Aggregators with DeFi Yield Generators. Funds are dynamically and efficiently allocated to ensure optimized yields, for custom strategies, managed by DAO-curated Risk Models.

Spool was established as a DAO, with a selection of founding contributors representing a diverse cross-section of the blockchain community.

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