Etherlink Enables Institutional-Grade Lending via Oku and Morpho Partnership

Oku, a non-custodial decentralized finance (DeFi) aggregator, has integrated Morpho Protocol on Etherlink, a Layer 2 blockchain built on Tezos technology, to introduce institutional-grade lending and borrowing capabilities to the Tezos ecosystem, according to a Finbold report. This development marks a significant expansion of Etherlink's DeFi infrastructure, combining Morpho's peer-to-peer lending architecture with Oku's user-friendly interface to create a platform that appeals to both retail and institutional participants, as noted in a FinanceFeeds article. Users can now manage collateral, access real-time analytics, and leverage algorithmic interest rates—all while maintaining self-custody of their assets, the Finbold report adds.

The integration leverages Etherlink's high-speed, low-cost transactions, which are critical for scalable DeFi applications, FinanceFeeds notes. By tapping into Uniswap v3 liquidity—one of the deepest in the industry—Oku enhances capital efficiency for traders and lenders, positioning Tezos as a competitive alternative for institutions seeking performance-driven DeFi solutions, the Finbold report adds. Dan Zajac, Business Development Lead at Oku, emphasized the platform's accessibility: "Users can now control their assets or borrow at competitive rates, all in one place. It's simple, efficient, and accessible."

A key milestone in this rollout is the launch of the first curated vault by MEV Capital, a prominent DeFi curator. The vault allows users to lend USDC against three yield-bearing tokens from Midas—mMEV, mBASIS, and mTBILL—offering a diversified strategy with institutional-grade risk management, the Finbold report notes. Laurent Bourquin, CEO of MEV Capital, highlighted the strategic importance of this move: "Etherlink's performance characteristics enable the institutional lending infrastructure we've pioneered on other chains. This collaboration brings institutional-grade vault curation to users seeking DeFi lending on Tezos Layer 2." The vault's design emphasizes self-custody, real-time market adaptation, and optimized capital allocation, aligning with the growing demand for transparent, risk-managed on-chain lending, FinanceFeeds adds.

Anthony Hayot, Head of DeFi Adoption at Nomadic Labs, described the integration as a "major milestone" for the Tezos DeFi ecosystem. He noted that the combination of Etherlink's infrastructure and Morpho's lending framework paves the way for Real-World Asset composability, enabling "efficient, transparent, and user-centric markets," the Finbold report records. Etherlink users now have access to multi-asset collateralized lending, adaptive interest rate models, and real-time data insights, all supported by the network's high throughput and low fees, FinanceFeeds notes.

The integration underscores Tezos's evolving role in the DeFi landscape. Etherlink's EVM compatibility allows seamless deployment of Ethereum-based applications, while its Tezos Smart Rollups technology ensures scalability and security, the Finbold report observes. For institutions, the platform offers a blend of performance-driven features and compliance-ready infrastructure, addressing a gap in the market for decentralized alternatives to centralized lending platforms, FinanceFeeds adds.

Users can begin exploring Oku's Etherlink integration by visiting oku.trade and connecting their wallets. The move reflects broader trends in DeFi, where institutional participation is increasingly driven by platforms that balance innovation with risk management. As Tezos's DeFi ecosystem matures, Etherlink's partnership with Oku and Morpho could catalyze further adoption, particularly as projects like Mutuum Finance and DeLeion Capital also seek to address market volatility and institutional needs, according to a Morningstar article.