Overview
- Morpho launched Midnight on Base on Tuesday, July 21, opening an initial cbBTC/USDC market with multiple maturity dates available from day one.
- Midnight runs isolated, immutable markets where offers are matched by intent and positions are recorded as tradable zero‑coupon units so same‑maturity credit can be bought, sold, or exited early.
- The system makes collateral price the primary state variable and uses an offer‑based matching book so makers do not have to lock capital before a match, reducing fragmentation that affected earlier fixed‑rate designs.
- Morpho is shipping Midnight inside its existing lending network, which the company says holds more than $11 billion in deposits and follows a $175 million funding round to accelerate institutional integrations.
- Third parties are already building on Midnight: Tenor Finance launched an institutional front end on Base with auto‑renewal, limit orders and OTC features, and Morphos plans vault adapters, cross‑chain support and auto‑rolling to broaden use and secondary‑market activity.