Morpho launches Midnight to bring fixed-term lending to Base

Unlike standard decentralized protocols that rely on automated pricing formulas, Midnight utilizes an intent-based, peer-to-peer matching system. CEO Paul Frambot stated that the architecture allows users to define specific interest rates, maturity dates, and counterparty requirements, mirroring the structure of conventional bond and term loan markets. This approach ensures that capital remains productive, as lenders can continue earning variable yields through Morpho Blue until their fixed-rate offers are matched.

Midnight is designed to support both institutional and retail participants, with a focus on tokenized real-world assets and repo-style transactions. The protocol allows for the transferability of fixed-term loan positions, fostering secondary market activity. This launch follows a significant $175 million funding round earlier this year, which valued the project at approximately $2 billion. With over $11 billion currently deposited across its broader network, Morpho intends to leverage its existing ecosystem of curators to accelerate the adoption of these fixed-rate primitives.