Tezos' DeFi Matures as Institutional-Grade Lending Platform Goes Live on Etherlink

Oku Integrates Morpho Protocol on Etherlink, Expanding Institutional-Grade Lending to Tezos Layer 2

Tezos' Layer 2 ecosystem has taken a significant step forward with Oku, a non-custodial DeFi aggregator, integrating Morpho's lending protocol on Etherlink. This collaboration introduces advanced lending and borrowing functionalities to the Tezos network, positioning it as a competitive player in decentralized finance (DeFi) and attracting institutional participation, according to a FinanceFeeds report.

The integration combines Morpho's peer-to-peer lending architecture with Oku's user-friendly interface, enabling traders and investors to manage collateral, lend assets, and access algorithmic interest rates—all while maintaining self-custody of funds. Dan Zajac, Business Development Lead at Oku, emphasized the platform's accessibility: "Morpho on Etherlink is a game-changer for lending. Users can now control their assets or borrow at competitive rates, all in one place. It's simple, efficient, and accessible." The FinanceFeeds piece provides additional detail on the rollout and platform features.

A key milestone in this rollout is MEV Capital's launch of the first curated vault on Etherlink. The vault allows users to lend USDC against yield-bearing tokens from Midas—mMEV, mBASIS, and mTBILL—offering a risk-adjusted strategy tailored for institutional-grade returns. Laurent Bourquin, CEO of MEV Capital, noted that Etherlink's performance characteristics align with the infrastructure required for on-chain lending: "This collaboration brings institutional-grade vault curation to users seeking DeFi lending on Tezos Layer 2."

Etherlink, an EVM-compatible Layer 2 network built on Tezos, provides the high-speed, low-cost infrastructure critical for scalable DeFi applications. By leveraging Uniswap v3's liquidity depth and Etherlink's transaction efficiency, the integration bridges institutional performance metrics with decentralized transparency. Anthony Hayot, Head of DeFi Adoption at Nomadic Labs, highlighted the significance: "The deployment of Morpho on Etherlink marks a major milestone for the Tezos DeFi ecosystem. By combining Etherlink's performance with Morpho's lending framework, we're enabling efficient, transparent, and user-centric markets."

The move follows a broader trend of institutional adoption of DeFi protocols. For example, Coinbase recently partnered with Morpho to offer USDC lending yields of up to 10.8%, while Crypto.com plans to integrate Morpho into its Cronos blockchain for similar services, as reported in a Cointelegraph article. These developments underscore Morpho's growing role in bridging traditional finance and decentralized ecosystems.

Etherlink users can now access multi-asset collateralized lending, adaptive interest rate models, and real-time analytics—all supported by the network's low fees and high throughput. The integration's seamless design aims to make DeFi more approachable for users of all experience levels while maintaining institutional-grade standards.

As the Tezos DeFi ecosystem matures, the integration of Morpho on Etherlink highlights the network's potential to compete with Ethereum and other Layer 1 chains in attracting large-scale capital. With MEV Capital's vault and Oku's platform already operational, the stage is set for further innovation in on-chain lending and capital efficiency.