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For Paul Frambot 🦋, variable-rate lending fails the basic test of a true financial primitive: “If you have variable rate, what does it vary on?” “The answer is that it’s arbitrary. You rely on something to say what is the rate, which makes it not a primitive.” “A primitive...

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Bankless

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29,978 views • 1 month ago •via X (Twitter)

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DeFi has always run on variable rates. The next unlock is fixed-rate, fixed-term lending onchain. Paul Frambot 🦋, co-founder and CEO of Morpho 🦋, joined DeFi Drip at the Real-World Asset Summit in Cannes. - The DeFi Mullet, and how Morpho became the backend for major earn products - Why fixed-rate, fixed-term lending is the unlock for institutional capital - RWAs as Morpho's fastest-growing collateral category: treasuries, credit, and indices Watch the full episode ↓
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DeFi has always run on variable rates. The next unlock is fixed-rate, fixed-term lending onchain. Paul Frambot 🦋, co-founder and CEO of Morpho 🦋, joined DeFi Drip at the Real-World Asset Summit in Cannes. - The DeFi Mullet, and how Morpho became the backend for major earn products - Why fixed-rate, fixed-term lending is the unlock for institutional capital - RWAs as Morpho's fastest-growing collateral category: treasuries, credit, and indices Watch the full episode ↓

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Introducing Term V2: The next layer of fixed-rate DeFi. Term V2 brings a peer-to-peer order book and atomic execution layer. With Term V2 live, the complete experience of Terminal 1 — an interface and routing system for fixed-rate markets— is unlocked. Users can express fixed-rate terms while capital stays productive, then route and execute positions in a single transaction. True fixed-rate, fixed-term markets, made executable. What’s live ↓
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I told you not to watch that "What Is a Woman" movie and some of you did it anyway. I hope you're happy with the way Matt Walsh mocked the ignorance of these primitive Masai people.
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EXCLUSIVE: Morpho 🦋 CEO Paul Frambot 🦋 on how Morpho Midnight is new infrastructure for institutional private credit. This week, Morpho launched Midnight, which enables fixed-rate, fixed-term onchain lending, starting with one cbBTC/USDC market on Base across multiple maturities. This is unlike most DeFi today, where protocols like Aave and Compound set your risk, rate, and term using their formulas. This is not ideal for large institutions with their own risk appetite. Morpho 🦋 Midnight hands risk, rate AND term to the open market, so investors can set their risk appetite, and borrowers can apply to meet that in the marketplace. Lending on Midnight means buying a claim on future cashflows, where you pay 0.95 today, receive 1.00 at maturity. The difference (discount) is your rate as a lender. That's exactly how a zero-coupon bond works, the primitive bond markets are built on. Some other nuances that came out in the interview Prior fixed-rate protocols split liquidity into a pool per maturity, so markets stayed thin and most died. This is how a bond desk runs a book. Morpho aims to ensure liquidity isn't fragmented into individual pools. It offers source funds only at fill, and one balance sheet can quote fixed rates across all maturities at once. So you quote once in many places. The fees are capped in the code with settlement at 50bps a year, a lender fee at 1%, and governance can *never* raise them. Infrastructure that can't reprice you is infrastructure a treasurer can underwrite. Wall St is coming to these DeFi protocols For example, Apollo (roughly $940bn AUM) is contracted to buy up to 9% of MORPHO supply over four years. So I sat down with Paul Frambot, Morpho's CEO, days after his most ambitious launch yet. DeFi lending reached tens of billions without a single maturity date. Now we find out what it builds with one.
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EXCLUSIVE: Morpho 🦋 CEO Paul Frambot 🦋 on how Morpho Midnight is new infrastructure for institutional private credit. This week, Morpho launched Midnight, which enables fixed-rate, fixed-term onchain lending, starting with one cbBTC/USDC market on Base across multiple maturities. This is unlike most DeFi today, where protocols like Aave and Compound set your risk, rate, and term using their formulas. This is not ideal for large institutions with their own risk appetite. Morpho 🦋 Midnight hands risk, rate AND term to the open market, so investors can set their risk appetite, and borrowers can apply to meet that in the marketplace. Lending on Midnight means buying a claim on future cashflows, where you pay 0.95 today, receive 1.00 at maturity. The difference (discount) is your rate as a lender. That's exactly how a zero-coupon bond works, the primitive bond markets are built on. Some other nuances that came out in the interview Prior fixed-rate protocols split liquidity into a pool per maturity, so markets stayed thin and most died. This is how a bond desk runs a book. Morpho aims to ensure liquidity isn't fragmented into individual pools. It offers source funds only at fill, and one balance sheet can quote fixed rates across all maturities at once. So you quote once in many places. The fees are capped in the code with settlement at 50bps a year, a lender fee at 1%, and governance can *never* raise them. Infrastructure that can't reprice you is infrastructure a treasurer can underwrite. Wall St is coming to these DeFi protocols For example, Apollo (roughly $940bn AUM) is contracted to buy up to 9% of MORPHO supply over four years. So I sat down with Paul Frambot, Morpho's CEO, days after his most ambitious launch yet. DeFi lending reached tens of billions without a single maturity date. Now we find out what it builds with one.

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Sam Altman: AI in April 2023 was primitive compared to what we have now and in another 18 months the gap between now and then will be even bigger and the rate of adoption and integration into society is unprecedented
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Sam Altman: AI in April 2023 was primitive compared to what we have now and in another 18 months the gap between now and then will be even bigger and the rate of adoption and integration into society is unprecedented

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Social Capital is the only currency that matters. Except it’s illiquid as hell. Gigi fixed that, creating a new primitive: one-click network sharing. Waitlist opening soon. Register.
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Thousands of tokens, NFTs, and TCG cards on Solana now have access to a worldwide, permissionless credit desk. Jupiter Offerbook is now in Public Beta, which means you can borrow against anything at a fixed rate and for a fixed term. Offerbook is different from every lending protocol you've ever used. Here's how it works:👇
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Jupiter

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Fixed Rate Mortgage Versus Variable: The Age Old Debate Heats Up Today borrowers choice of a Variable Rate Mortgage has risen from less than 15% in 2023 to over 40% of all new mortgages today Is that a good idea? Bad idea? How to decide? What's the right advice?
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this one is for the ecom data nerds it is importnat to work out your true ROAS when scaling ads retention rate, churn rate, customer lifespan, etc... the goal is for you to have the ability to calculate the AOV & LTV per customer comment "LTV" and I'll DM you the Gsheet
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The ‘Thunderstone’ of the late 1700’s is often used as an example to “prove” that ancients could move enormous stones with primitive methods. However, it’s utterly debunked when you learn the true details…👇🏻
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ELON MUSK: “One of the things that is overlooked by probably most historians is the role of low birth rate in the decline of civilizations. Around 50 BC, Rome passed a bill to give a bonus to any Roman citizen that would have a third child. So a birth rate was a problem in Rome in 50 BC. The Romans weren’t making Romans. The same is true of ancient Greece. The birth rate far exceeded the death rate, which is why you had Greek cities popping up all over the Mediterranean. But then it seems to be that prosperity destroys the birth rate. When a civilization feels like it has no meaningful external threat and is very prosperous, that is what causes the birth rate to plummet.”

DogeDesigner

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trUSD and strUSD are live on Pendle. PT, for a fixed rate: PT-strUSD is at 12.25% for the 119 days to maturity, whatever strUSD's yield does in the meantime. It costs $0.9629 and redeems for 1 trUSD. YT, for the variable yield and the Cores: YT-strUSD costs $0.0368. A YT is a claim on that yield until 26 November, and nothing after it. It only pays off if the yield and Cores it collects beat what you paid. LP, for a mix of both plus swap fees: You supply either side and hold a share of the pool, part PT and part SY. The SY side keeps earning strUSD's yield, with swap fees and PENDLE incentives on top. Pendle reads the strUSD pool at 16.25%, 1.41% of that in PENDLE. The rate moves with volume and the SY ratio. Cores: YT-strUSD earns 6x and YT-trUSD earns 30x. Lock the YT on Tori and both rise 50%, to 9x and 45x. An LP earns 9x on strUSD and 45x on trUSD, against 5x for holding strUSD on its own. An LP holds PT alongside SY, so it carries less of the variable yield than holding strUSD, and its Cores land on the SY portion rather than the whole position. trUSD runs the same structure. It does not accrue yield, so its entire PT rate is the discount to par, 13.95%. YT-trUSD costs $0.0415. PT markets go live on Morpho on Sunday 2 August. PT looping follows. Links below.
0:40

trUSD and strUSD are live on Pendle. PT, for a fixed rate: PT-strUSD is at 12.25% for the 119 days to maturity, whatever strUSD's yield does in the meantime. It costs $0.9629 and redeems for 1 trUSD. YT, for the variable yield and the Cores: YT-strUSD costs $0.0368. A YT is a claim on that yield until 26 November, and nothing after it. It only pays off if the yield and Cores it collects beat what you paid. LP, for a mix of both plus swap fees: You supply either side and hold a share of the pool, part PT and part SY. The SY side keeps earning strUSD's yield, with swap fees and PENDLE incentives on top. Pendle reads the strUSD pool at 16.25%, 1.41% of that in PENDLE. The rate moves with volume and the SY ratio. Cores: YT-strUSD earns 6x and YT-trUSD earns 30x. Lock the YT on Tori and both rise 50%, to 9x and 45x. An LP earns 9x on strUSD and 45x on trUSD, against 5x for holding strUSD on its own. An LP holds PT alongside SY, so it carries less of the variable yield than holding strUSD, and its Cores land on the SY portion rather than the whole position. trUSD runs the same structure. It does not accrue yield, so its entire PT rate is the discount to par, 13.95%. YT-trUSD costs $0.0415. PT markets go live on Morpho on Sunday 2 August. PT looping follows. Links below.

Tori Finance

13,000 views • 1 month ago

.Morpho 🦋's Midnight could become a machine for pricing trust. Paul Frambot 🦋: “There’s a module in the protocol that lets you express why you should be trusted.” “That could be collateral, but that could also be your identity, your receivables, whatever.” “A piece of code is not here to give credit to people. Credit is complex.” “The key is externalizing the rate and externalizing the risk, such that the market can price any type of risk.”
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.Morpho 🦋's Midnight could become a machine for pricing trust. Paul Frambot 🦋: “There’s a module in the protocol that lets you express why you should be trusted.” “That could be collateral, but that could also be your identity, your receivables, whatever.” “A piece of code is not here to give credit to people. Credit is complex.” “The key is externalizing the rate and externalizing the risk, such that the market can price any type of risk.”

Bankless

22,397 views • 1 month ago

Bullseye is leverage on a fixed yield, in one deposit. You put in $10,000. The vault buys PT, posts it as collateral, borrows against it, buys more PT, and loops until it hits your target. Now you control ~$30,000 of PT earning 4.8%, paying interest only on what you borrowed. Net ~$1,040 on $10,000. That's 8–12% depending on leverage and rates; ~10% is the midpoint. PT is calm collateral, it trends toward face value as it matures, so the loop rarely has to move. And the vault deleverages itself before liquidation, not after. The yield is variable. It moves with the borrow rate. This is leverage, know what you're holding. Fletch. Split it. Basket it. Bullseye it.
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Bullseye is leverage on a fixed yield, in one deposit. You put in $10,000. The vault buys PT, posts it as collateral, borrows against it, buys more PT, and loops until it hits your target. Now you control ~$30,000 of PT earning 4.8%, paying interest only on what you borrowed. Net ~$1,040 on $10,000. That's 8–12% depending on leverage and rates; ~10% is the midpoint. PT is calm collateral, it trends toward face value as it matures, so the loop rarely has to move. And the vault deleverages itself before liquidation, not after. The yield is variable. It moves with the borrow rate. This is leverage, know what you're holding. Fletch. Split it. Basket it. Bullseye it.

Fletch

10,856 views • 1 month ago

Y Combinator co-founder Paul Graham says he's constantly telling founders that all that matters is growth rate, not the absolute numbers. His rationale is straightforward: mathematically, if your growth rate is high enough, it simply doesn't matter what the absolute numbers are. "And the great thing about focusing on growth rate is you can focus on selling to startups for cheap, instead of having to go and do these big deals with big companies that take a long time and make your product stupider."
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Y Combinator co-founder Paul Graham says he's constantly telling founders that all that matters is growth rate, not the absolute numbers. His rationale is straightforward: mathematically, if your growth rate is high enough, it simply doesn't matter what the absolute numbers are. "And the great thing about focusing on growth rate is you can focus on selling to startups for cheap, instead of having to go and do these big deals with big companies that take a long time and make your product stupider."

TBPN

82,621 views • 6 months ago

🚨Chamath on why the Fed could keep holding off rate cuts: "The only answer is political." The FOMC's June rate cut decision is happening this week. It is expected they will keep rates unchanged. The chances of a Summer rate cut are extremely small. According to Polymarket: -- June: ~98% chance of "No change" -- July: ~87% chance of "No change" Chamath's take: "Let's just scenario play. What happens if Powell rips in a 100 basis point cut right now?" "I'll tell you. So one part, which is mathematical, is the interest on the debt goes down. We save $300B." "But there's something else that happens, which is the Fed does control the front end of the curve." "Meaning how do people borrow money for small amounts of time from one day to about two years." "If you make that cheaper, it's a test as true as time, what happens is people borrow more money." "That fuels more growth. That will end up in GDP." "So what actually happens if you cut rates 100 basis points is not just the $300B, but you can get this reflexive positivity in the economy." "What that allows you to do is, even if that causes a little bit more inflation, you're actually growing yourself out of this whole thing." "If the numerical justification is there to lower rates and it has all of these other positive externalities for the United States economy, why don't (you) do it?" "The only answer is political."
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🚨Chamath on why the Fed could keep holding off rate cuts: "The only answer is political." The FOMC's June rate cut decision is happening this week. It is expected they will keep rates unchanged. The chances of a Summer rate cut are extremely small. According to Polymarket: -- June: ~98% chance of "No change" -- July: ~87% chance of "No change" Chamath's take: "Let's just scenario play. What happens if Powell rips in a 100 basis point cut right now?" "I'll tell you. So one part, which is mathematical, is the interest on the debt goes down. We save $300B." "But there's something else that happens, which is the Fed does control the front end of the curve." "Meaning how do people borrow money for small amounts of time from one day to about two years." "If you make that cheaper, it's a test as true as time, what happens is people borrow more money." "That fuels more growth. That will end up in GDP." "So what actually happens if you cut rates 100 basis points is not just the $300B, but you can get this reflexive positivity in the economy." "What that allows you to do is, even if that causes a little bit more inflation, you're actually growing yourself out of this whole thing." "If the numerical justification is there to lower rates and it has all of these other positive externalities for the United States economy, why don't (you) do it?" "The only answer is political."

The All-In Podcast

632,242 views • 1 year ago

Web3 is missing a secure and composable messaging primitive. Today, we’re fixing that. Introducing the Sui Stack Messaging SDK - private, programmable, wallet-linked messaging for apps on Sui. Here’s how it works 👇
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Web3 is missing a secure and composable messaging primitive. Today, we’re fixing that. Introducing the Sui Stack Messaging SDK - private, programmable, wallet-linked messaging for apps on Sui. Here’s how it works 👇

Sui

9,037,008 views • 11 months ago