Morpho launches fixed-rate lending protocol Midnight on Base

Morpho has launched Midnight on the Base mainnet, adding fixed-rate, fixed-term onchain loans to its credit network. The protocol initially supports cbBTC and USDC and lists multiple maturity dates so lenders and borrowers can choose specific durations.

Midnight uses an offer-driven market where lenders and borrowers post custom loan offers and match directly. Loans are issued as fixed obligations with terms determined by competing offers rather than by an algorithmic pool pricing model based on utilization.

Under the design, capital can continue to earn variable yield until a fixed-rate offer is accepted. Morpho described the approach as an ‘offered capital’ model intended to avoid liquidity being locked or fragmented across many maturity buckets, a common challenge for fixed-rate DeFi systems.

Morpho said fixed rates and defined maturities could appeal to institutions and businesses that need to plan funding costs and manage risk in advance. The company kept the launch intentionally limited and said the rollout will be progressive with a focus on security.

Users of Morpho’s existing variable-rate platform, Morpho Blue, have shown interest in Midnight, according to the company. Several unnamed enterprises and institutions are testing products built on the protocol in beta, with public announcements expected as those products go live.

The fixed-rate project dates back to Morpho’s 2025 Morpho V2 roadmap, which described an intent-based, peer-to-peer marketplace where users submit custom offers and price loans through market demand. Morpho named the fixed-rate protocol Midnight in April and published a whitepaper and an open-source codebase in May to explain the design and mechanics.

Midnight is designed to operate alongside Morpho Blue rather than replace it. Blue will continue to provide variable-rate, open-ended lending pools where borrowing costs change with market utilization, while Midnight places rate, duration and loan risk under the control of the parties that set and accept offers.

Morpho’s launch of Midnight follows a $175 million funding round announced in June led by Paradigm, Andreessen Horowitz’s a16z crypto and Ribbit Capital. The company has said it plans to expand integrations with banks, asset managers and larger platforms and to add features common in traditional credit markets. Earlier this year, a major exchange began offering Morpho-powered USDC loans in the U.K. under variable-rate terms, illustrating the open-ended borrowing model that Midnight is intended to complement.

Morpho emphasized a phased release and ongoing security work as it brings fixed-rate features to its decentralized lending infrastructure.