Morpho has publicly launched Midnight, a fixed-rate, fixed-term lending protocol on Base, after unveiling the protocol in May. Morpho Midnight complements Morpho Blue, the project's existing variable-rate lending protocol.
The launch is aimed at expanding onchain credit markets by bringing fixed-rate lending onchain. Traditional credit markets rely on fixed interest rates and defined loan terms, while most decentralized lending protocols today use variable rates. Morpho co-founder and CEO Paul Frambot said Midnight is designed to close that gap by allowing participants to structure loans with defined rates, maturities, and counterparties in a way that aligns more closely with institutional credit markets.
"Fixed-rate lending is fundamental to how global credit markets operate," Frambot said. "Without it, onchain markets remain incomplete."
Morpho said Midnight allows lenders and borrowers to negotiate their own loan terms rather than relying on protocol-set pricing formulas. It is available to both institutional and retail users and is designed to support a broader range of onchain credit activity, including financing backed by tokenized real-world assets, structured credit products, and repo-style transactions.
