David

Probably the most interesting thing about Morpho is that they've really nailed the architecture of

in B1, right?

So a good example of this is in contrast to Aave where things are a lot more interdependent, for lack of better words, Morpho has very, very clean risk isolation.

Each of these markets is an independent market and you have curators which basically deposit into these markets and manage users who want to lend to these markets.

And this very clean separation and management of risk makes it very, very compelling for institutions and makes them the prime candidate for lending newer assets or spinning up markets on newer assets like more long tail RWAs.

So it's very hard not to be bullish from that perspective.

Beyond that, you know, there are a lot more, I would say, corporate minded almost in the sense that they are, you know, they nailed the Coinbase Morpho integration.

I wouldn't be surprised to see

At least half a dozen more fintech unicorns implement a similar playbook after seeing how well it's gone for Coinbase.

And again, Morpho is just very well set up to do that versus other lending markets.

And then maybe the last reason why I think they're very compelling is if you look at it since January 2024, both Aave and

Morpho's total active loans were pretty much directly correlated with the price of ETH.

That's actually still true or largely true of Aave.

That is not largely true of Morpho and it's actually decoupling more by the day.

Right.

So that is, you know, they're just very well positioned to absorb a lot of these institutional capital inflows.

And my prediction is I suspect right now they're 10% of total active loans issued.

I suspect that'll grow to maybe 25 to 30% this year.

Yeah, the one thing that Morpho's really nailed is that the...

Risk isolation there is very, very compelling for institutions.