garΞth

👋 I build web3 things. 💼 Eng Manager @MorphoLabs, prev @Balancer. 🦮 Big fan of dogs. 🚴‍♂️ Enjoy cycling.

[Morpho 🦋 @Morpho]

The Morpho Midnight Whitepaper

A noncustodial protocol for fixed rate, fixed term credit markets

https://t.co/0Sws6JiRsA

[garΞth @GarethAFuller]

The shape and work of an engineering team has fundamentally changed within the past 6 months. The impact on the tech industry is going to be colossal.

[Paul Frambot 🦋 @PaulFrambot]

Morpho's fixed rate protocol now has a name: Morpho Midnight.

Morpho Midnight is not an iteration of Morpho Blue. It is a completely new paradigm for onchain lending, and should not be considered a "V2" of Blue.

Blue = pool-based open term variable markets with externalized risk management.
Midnight = intent-based fixed term fixed rate markets with externalized risk AND rate management.

The two will coexist, complementing one another to extend the capabilities of the Morpho network. We’ll start sharing more updates on Midnight as audits finalize.

[a16z crypto @a16zcrypto]

"Finance is like essentially 50,000 different banks and credit unions that all have segregated infrastructure.”

@Morpho cofounder @PaulFrambot on why crypto can reshape lending:

“Ethereum is like one single database for the entire world, like one single computer for the entire world.”

“Instead of going to a specific bank, you’re gonna come to the open blockchain … and then you’re gonna have the entire world quote you on your interest rate.”

[Paul Frambot 🦋 @PaulFrambot]

https://t.co/FuV2Vto6nm

[Paul Frambot 🦋 @PaulFrambot]

As we approach the official release of Morpho’s fixed rate markets protocol it’s becoming clear that it should not be seen as an iteration of the existing Morpho variable rate markets (today known as Markets V1). It is a completely new paradigm that’s unlike anything DeFi has seen before.

Fixed rate markets are an extension of Morpho's offering, not a replacement. Variable rate markets remain a foundational part of DeFi for the few years to come. The two will complement one another.

For that reason, we’re drop the versioning naming we've been using up until now, and the protocols will no longer be named Markets V1 and Markets V2. We’re changing:

Markets V1 → Morpho “Blue” (as it was originally) Markets V2 → Morpho “[TBA]”

Blue introduced permissionless open-term variable rate markets, with externalized risk management. [TBA] will introduce fixed term, fixed rate, intent lending, with externalized risk and rate management. A completely different structure for pricing and matching that will take Morpho from $10B to $100B+.

As a side note: Morpho Vaults retain versioning because Vaults V2 is a direct improvement designed to supersede Vaults V1, exactly what versioning is meant to signal.

It has been an incredibly hard 2 years of building [TBA], but we are very excited to share more information about Morpho fixed-rate markets soon.

[Paul Frambot 🦋 @PaulFrambot]

Four years building @Morpho taught us what actually matters for onchain lending to truly scale.

In 2026, these learnings are compounding into our next phase—continuing to bring some of the biggest institutions into DeFi, while also shipping Morpho V2, which will unlock the last bottleneck of DeFi loans: pricing.

By the end of the year, DeFi will look very (very) different. 👇

[Paul Frambot 🦋 @PaulFrambot]

https://t.co/0aROdhUys8

[garΞth @GarethAFuller]

Tailwind have CMF (Code Model Fit) now, not PMF. Hopefully they can find a way to leverage that...

[garΞth @GarethAFuller]

The trickiest bit was actually iterating on the quiz generation prompt. It was surprisingly hard to get it to generate good quality but random quizzes every time.

[garΞth @GarethAFuller]

A little experiment in vibe coding over the last few weekends.

This was built almost entirely by speaking to my laptop whilst on a bike...

Kudos to @claudeai & @WisprFlow, You made a great app!

https://t.co/oHVe8hsyrQ

[garΞth @GarethAFuller]

A little experiment in vibe coding over the last few weekends.

This was built almost entirely by speaking to my laptop whilst on a bike...

Kudos to @claudeai & @WisprFlow, You made a great app!

https://t.co/oHVe8hsyrQ

[garΞth @GarethAFuller]

Granola Crunched is marketing genius! Bravo sers! 👏

[garΞth @GarethAFuller]

Probably my favourite ever sci-fi book. This will be amazing, can't wait. https://t.co/e3HcEzNTpL

[garΞth @GarethAFuller]

Are there any apps that turn github comments into a chat app?

[Paul Frambot 🦋 @PaulFrambot]

I am very down. @StaniKulechov, are you in?

[garΞth @GarethAFuller]

“The bitterness of the silk-weaver thrown out of work by machinery came, not solely from his own poverty, but from the sense that a whole tradition of craftwork was being thrust into oblivion by inferior products.”
- The Fatal Shore (England in 1800s)

How to not become the silk-weaver of the 2000s? 😅

[Paul Frambot 🦋 @PaulFrambot]

A vault is comparable to an onchain fund, and just like traditional funds, some will perform well and others won't, but this is what we must accept and mitigate if we want to build a truly open and decentralized system.

The fact that only 1 out of ~320 vaults on the Morpho App had limited exposure to xUSD isn't evidence that the model doesn't work — quite the opposite. Morpho's isolated market + vault model meant all 319+ other vaults and their depositors, each with different risk profiles, had zero exposure.

Many assume losses equal system failure. However, in open financial systems, losses are a natural consequence of risk-taking, even when systems operate exactly as designed. As an industry, we should not fall for the fallacy that yield is risk-free. Instead, we should focus on better surfacing and educating about risks — ourselves included.

For DeFi to be the backend of finance and scale to trillions in lending volume, lending infrastructure must remain separate from risk management. We firmly believe that this open and permissionless approach is the right one, and how DeFi was intended to work.

[Fernando @fcmartinelli]

Even though I stepped back from active work on Balancer, it still represents many years of work and a vision I deeply believe in. Watching today's events unfold has been difficult, and very painful to be honest.

The team is handling this with the professionalism and dedication I would expect. They are working with leading security experts and pursuing every angle to investigate and recover what was lost.

What strikes me most is seeing the DeFi community rally around Balancer. The support from partners, other protocols, and community members reminds me why we built this space in the first place. We are all in this together, learning and evolving.

Balancer has weathered challenges before: I'm sure the team and security experts will do all they can and Balancer will come out of this stronger.

[lauren @poteto]

we don't have to live this way. senior engineers have the duty of building guardrails and teaching the next generation of programmers the practices that lead to high quality software.

AIs may write most of the code, but you still decide what ships. we should never lose our taste for quality software.

i made this analogy a while back: everyone can cook at home but yet restaurants still exist. the floor is rising, but so is the ceiling. the best software will always be made by those who care.

[Tarik @tarikbell]

im thrilled to announce im now head of engineering @MorphoLabs 🦋

ive spent most the last 7 years in defi (fun fact - my first startup was built on @compoundfinance) and im as bullish on morpho as i am @Uniswap.

why morpho is inevitable and what i’ll be focused on 🧵