Decentralized Finance (DeFi) platform Oku revealed its collaboration with the Morpho Protocol to bring Bitcoin-backed lending and borrowing to the Corn Network and expand the BTC-based decentralized finance (BTCFi) ecosystem.
DeFi Platforms Partner To Unlock New Opportunities
On Thursday, Oku, an interface simplifying access to complex DeFi protocols across multiple networks, announced the launch of the DeFi lending protocol Morpho on the Corn Network. The integration marks the first major lending protocol deployment on the Arbitrum-powered specialized network built for BTCFi.
Corn is set to bring Bitcoin-collateralized loans fully on-chain with DeFi’s security and transparency advantages. The announcement explains that “the potential market for Bitcoin-backed lending on decentralized platforms is enormous,” with over $1 trillion in BTC’s market capitalization “largely sitting idle.”
As such, the integration aims to offer the opportunity to participate in overcollateralized lending markets using BTCN, Corn’s 1:1 BTC-backed token that leverages Bitcoin bridging mechanisms for cross-chain functionality.
According to DeFiLlama data, Morpho is the third-largest lending protocol with a Total Value Locked (TVL) of $2.61 billion. In January, the protocol hit a TVL of $6.5 billion, including borrow volume, and recently expanded to multiple chains like Unichain, POS, Ink, Polygon, and Arbitrum.
Corn’s co-founder, Spadaboom, considers that “Morpho’s arrival on Corn represents exactly the kind of high-quality DeFi protocol integration we envisioned when building the network,” adding that “This integration creates a powerful foundation for Bitcoin-backed lending that maintains security while unlocking new utility for Bitcoin within the broader DeFi landscape.”
Expanding The BTCFi Ecosystem With Bitcoin-Backed Lending
Morpho’s deployment on the Network “represents a strategic expansion of the BTCFi ecosystem,” enabling users to provide collateral using BTC-backed assets to borrow other cryptocurrencies.
Moreover, it seeks to allow users to earn yield on BTC holdings through Morpho’s lending markets, access dynamic interest rates optimized for market conditions, and maintain noncustodial ownership of crypto assets throughout the lending and borrowing process.
Starting April 14, users can access the lending protocol on Corn through the Oku interface, which supports lending and borrowing with multiple assets. They can interact with Morpho’s lending protocol using a 1:1 Bitcoin-backed token, leveraging Corn’s BTCN gas token system.
According to the announcement, the network is introducing a year-long CORN incentives program for Morpho users. The program will be part of Cornfields S1, a Network-wide incentive to earn CORN tokens through key protocols.
Oku’s CEO, Getty, stated that the team is “excited to collaborate with Corn, Morpho, and Steakhouse Financial to drive BTCFi forward,” explaining that “At Oku, we want everyone to have a buttery smooth user experience, whether you’re an experienced farmer or just entering the arena.”
Bitcoin trades at $84,130 in the one-week chart. Source: BTCUSDT on TradingView
