Gelato and Morpho have announced a new service for crypto loans aimed at making decentralized lending more accessible to a wider audience.
New Crypto Loan Service
On June 25, Gelato launched a new service with Morpho that offers non-custodial crypto loans across various blockchains. Users can borrow stablecoins like USDC by using crypto assets such as Bitcoin as collateral.
Convenience and Accessibility
According to Paul Frambot, CEO of Morpho Labs, the service aims to simplify access to decentralized loans, making it available for both retail and institutional users without requiring credit checks.
Risks of Crypto Lending
The teams have also emphasized the risks associated with crypto lending. A sharp decline in crypto prices could make collateral insufficient to cover outstanding loans, leading to potential platform collapses.
The new crypto loan service from Gelato and Morpho highlights the rapid evolution of decentralized finance and the effort to attract a wider user base, while emphasizing the importance of understanding associated risks.
