Pantera Capital invests in decentralized lending protocol Morpho

U.S.-based hedge fund Pantera Capital revealed today its investment in the decentralized lending protocol Morpho. The firm did not reveal the amount of the investment.

“Morpho set out to develop a more robust, user-controlled risk assessment platform with a unique lending pooling and matching system,” Pantera said in the announcement.

Morpho previously raised $18 million in a round led by Andreessen Horowitz and Variant via a native token sale in July 2022.

The protocol allows various protocols and apps to be built on top of its base layer, Morpho Blue, which externalizes risk management and allows institutions to integrate it into their own risk and compliance management systems.

End users on Morpho’s lending and borrowing protocol are able to choose risk assessors, while other DeFi protocols employ third parties to manage risks, the release noted. Morpho has over $970 million in total value locked.

New York-based research firm Gauntlet announced yesterday that it will work on designing and managing risk for Morpho’s lending vaults.

Pantera did not immediately respond to The Block’s request for further details on the investment.