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Key Takeaways
- Uniswap launched Earn with Morpho, adding lending directly to its app.
- Users can deposit USDC, USDT, and ETH into three Gauntlet curated vaults.
- The launch expands Uniswap beyond swaps as Morpho grows as lending infrastructure.
Uniswap has launched Earn, a lending product built with Morpho that lets users deposit USDC, USDT, and ETH into three Gauntlet-curated vaults directly inside the Uniswap app. The launch pushes the largest decentralized exchange by trading volume beyond swaps and liquidity provision into on-chain lending.
Users Can Lend USDC, USDT, and ETH Through Earn
Earn is live on Ethereum mainnet through the Uniswap Web App and Wallet. Users select an asset, choose an amount and authorize the deposit with a single signature. Assets are then lent to borrowers through Morpho’s lending markets, with borrower interest becoming depositor yield.
There are no Uniswap-specific fees, though standard Ethereum network costs apply. The product carries no lockup or cooldown period, and users retain custody throughout.
Deposits appear alongside other holdings in the Uniswap portfolio interface, showing the amount deposited, current yield rate and total earnings.
Gauntlet curates the three vaults and determines how deposits are distributed across eligible markets. The firm can set exposure limits and rebalance capital as conditions change, though depositors still carry the risk of those allocation decisions.
Earn Targets Lending While DualPool Combines Two Strategies
Anthony Beshay, staff product manager at Uniswap, framed the product as an extension of the exchange’s original purpose.
“Uniswap was built to give people open, direct access to onchain markets and Earn is a natural next step. It gives users a simple way to put their assets to work without needing to manage concentrated liquidity positions.”
A Uniswap spokesperson said Earn targets users who want yield through lending, while DualPool, developed with Spark, is intended for users who want to both provide liquidity and lend. The spokesperson declined to comment on whether Uniswap earns revenue from the Morpho integration.
Curated Vault Structure Raises Regulatory Questions
The product arrived shortly after SEC Commissioner Hester Peirce said crypto vaults and on-chain lending strategies may already fall within existing federal securities laws depending on how they are structured.
Her comments bear directly on curated vault products, where a third party like Gauntlet makes allocation decisions on depositors’ behalf, a structure that resembles managed investment products under some readings of existing law.
Asked about those remarks, the Uniswap spokesperson said the company is confident it is acting in compliance with all applicable laws.
Morpho Adds Uniswap to Its Growing Integration Network
Coinbase, Robinhood, Bitwise Asset Management and Société Générale have all integrated or built products on Morpho, which reported roughly $11.79 billion in deposits and $4.15 billion in active loans at the time checked.
Morpho co-founder and CEO Paul Frambot said in a statement that the protocol’s value comes from network effects, with each integration adding liquidity and making Morpho more useful to everyone using it.
More integrations could deepen its lending markets and strengthen the pitch to future partners. Any protocol-revenue impact would still depend on the DAO activating its fee switch.
UNI traded near $4.32, up about 1% over 24 hours, with a market capitalization of $2.7 billion. MORPHO traded around $1.95, down 1.8%, with a market capitalization of $1.3 billion.
