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- [00:03]
David Hoffman
Bankless Nation. We got Paul from Morpho back on the podcast talking about a new thing out of the world of Morpho called Morpho Midnight. We're going to talk about it and everything else that's going on in the world of Morpho and vaults broadly. Paul, welcome back onto the show.
- [00:15]
Paul
Hey, thanks for having me again.
- [00:16]
David Hoffman
Paul, what is Morpho Midnight?
- [00:19]
Paul
Yeah, Morpho Midnight is basically the next version of Morpho after Morpho Blue. So Morpho we're infrastructure that allow people to earn interest on one end and get some financing on the other end. So we give you a stack that allows you to create some lending markets, right? In Morpho Blue you could select one collateral, a loan asset, an Oracle, and you had this like variable rate open term lending experience that was like pretty convenient and pretty passive to get into. And we've done this for the last two years. But what we realized as we were talking to more and more institutions, that one thing was lacking, it was control over the interest rate. Right? Whether you're consumer, you know, a retail user of a large app like, you know, Robinhood or Coinbase, you want predictability on your rate like you want, you know, you want to know what, how much you're going to pay. But most importantly, if you're a large institution, you would, you want control on the rate because you want to price the risk accurately, right? You, you, it's actually not a thing in traditional finance to have your interest rates rely on like arbitrary formulas or arbitrary governance, like it is the case in DeFi. And so basically the combination of those two feedbacks made it obvious that the future of DEFI financing had to move away from the so called interest rate model that we have today that basically dictates what the rate is going to be to a much more, you know, traditional way, which are zero coupon obligation. So long way of saying more for Midnight is like a fixed rate, fixed term lending and borrowing infrastructure that allows you to build lending and borrowing markets that have a term and has a fixed rate.
- [01:58]
David Hoffman
And this, to me this seems like Morpho is building financial infrastructure that is very ubiquitous in Tradfi and in, you know, in Morpho and also Defi broadly, we kind of built the things that made sense for us to build in the first place, like aave, Morpho, Morpho, you know, Morpho Blue, things that don't really mesh well with Tradfi but do mesh well for retail participants. The amm, for example, is just a retail Friendly phenomenon and more for booze. Like, the same thing is just like, like retail actually doesn't really care about stable interest rates. They just, you know, they're okay to be exposed to the market of whatever the market wants to pay them in that moment. And it can flex up, it can flex down and, and that's just like not true for institutions. And so based off of your customer feedback from talking to institutions, I'm like, I'm sure they were like, we are looking for the form factor that we are familiar with. Please build it. And that's what Morpho Blue is.
- [03:01]
Paul
Yes, I think pretty much. I like the way you explain that is in the early days of Defi, basically you had multiple constraints. GAS was high. And also the set of users that was interacting with the chains was basically users with their MetaMask wallet that had a little bit of money and they were in no way financial experts. Right. So basically the protocols initially had to internalize a lot of the complexity in order to provide a passive experience to users. And they could not rely on any other intermediaries to do that. Right. So this is why the early versions of Uniswap, for example, is passive both on the LP side and on the trader side. Right. You can do passive LPs on Uniswap V2 and passive trading. This is why compounds or AAVE manage the risk for you, they manage the rate for you, they manage everything for you. Right. But as the ecosystem grows and the complexity of the players, they're more and more complex and understand they want more control. Right. And so as a DEFI protocol, you have an interest in modularizing some parts of your code and of the responsibilities that you have and leave it to the market because the market will price it better and it will scale much more because they'll be able to discover much more use cases. So what does that mean in practice? In the case of Uniswap, they turn Uniswap V2 into Uniswap V3, that, you know, externalize the LP like some of the LP management a little bit more. And, and so it's not Easy to passively LP on Uniswap V3, it's still easy to take, but in Uniswap before, it's actually hard to take and it's actually hard to LP directly at the smart contract level because like Defi is like in layers now. You have a wide set of, you know, you have those MEV bots or like market makers that are going to run the different auctions In Unis, Apex, whatever that basically overall provides the market efficiency that is closer to traffi infrastructure and lending followed the same thing, which is it started with the very passive thing that managed both the risk and the rate for you. And then Morpho Blue, we came in like Morpho Blue is harder to use than it is to use aave, right? Because you have to choose beyond like this, like you know, 2000 markets, 1000 vaults. Like you know, it's hard. And so you rely on those curators to basically simplify the experience. So you have one extra layer and. And Midnight goes one step further in that direction and says, hey, you know what? The protocol should not manage the risk, but it should also not manage the rate and the ecosystem participants should do it anyway. Long way of saying that defi is layering and that's a good thing in my opinion, is just going to provide us much more flexibility and much more market efficiency. And it will give the serious institution the control they want.
- [05:41]
David Hoffman
I've been trading crypto assets for almost a decade and I've used so many wallets, exchanges, aggregators, front end, and I'm kind of always looking for the same thing. One interface with deep liquidity across a bunch of chains and assets and the ability to act in private. And I still control my own funds and I've never really found it. And I'm always switching wallets, juggling gas fees or getting eaten by slippage. Near.com feels fundamentally different to me. My account is easy to use and I can take all the actions I want from any chain while my activity remains confidential. It runs on near, which has moved over $23 billion cross chain using post quantum signing and has over 5 years of uptime. Near.com is the best way to be on chain and be in control. Get 20% of your trading fees back through the bankless link. It's in the show notes, not investment advice. Markets don't move one asset at a time. One day it's bitcoin, the next Nvidia, then gold, and then the S and P. But most traders are still managing their portfolio across different platforms, different accounts and different pools of capital. Bitget just changed that. Their new Stocks 2.0 product lets you trade tokenized equities directly with USDT all inside the same app you already use for crypto. This is not just another tokenized stock product. Stocks 2.0 is designed around deeper liquidity, faster execution and the lowest fees in the market. At just 0.04% and 1 to 1 economic exposure to the underlying stock bit dividends, stock splits and other corporate actions are reflected automatically, helping your position stay aligned with the asset you actually want. Exposure to one platform, one account, multiple markets, crypto equities, commodities and more. All accessible with USDT Bitget Trade Smarter. Start trading today through the link in the show notes. This is not investment advice. The thing that I want to know is that when, when we discovered crypto or discovered defi, there are some defi primitives that just felt really elegant because it gave some numbers in the, some parameters and it gave it up to the market, right? And so we learned that Ether Delta, the first order book exchange on Ethereum, is like not the way that we're going to build that. And what came after Ether Delta, Uniswap and Uniswap created X times Y equals K. And it worked well with blockchains. It resonated with the construction of blockchains and the, you know, the inputs and the outputs are all determined by the market. And it felt very elegant and it felt very defi native. It was intuitive to, you know, financial first timers like myself who, who learned finance through crypto. And it all worked. And that was like the early era of 2021, DeFi and beyond. And now we have things like morpho midnight coming online. And you know, what are the, what are the four ingredients of a morpho midnight loan? You have the loan token, the collateral asset, a maturity date, and then permissions for any sort of permissioning system that a vault manager would want to want to create. And this is all. It doesn't feel defi resonant. It feels very much like tradfi asking for product features and then morpho midnight building them. But that's my bias as a like a individual defi, like on chain enthusiast. And I want to know, the question I have is like, is fixed term, fixed rate lending, borrowing and lending, is that also a logical conclusion for finance or is that just kind of how finance we built finance top down? Do you get what I'm saying?
- [08:58]
Paul
Oh yeah, it's a great question. I love that question because I have a strong perspective on this. I. So first I would. So the answer is I think yes, I think fixed rate, fixed term is the right primitive for financing.
- [09:12]
David Hoffman
It is a true primitive.
- [09:13]
Paul
It is the true and it's the only true primitive. And it's a deep, deep conviction that I have because if you have variable rate, what does it vary on, right? What is the function? And the function, the answer to that is that it's arbitrary. You rely on something to say what is the rate? Which makes it not a primitive. A primitive does not rely on anything for its existence, right? Whereas a fixed rate, fixed term market, the primitive is a zero coupon obligation, which is an extremely simple construct, much simpler than the mess that a lending pool is. Because a lending pool is a mess, right? It's a very simple construct which you could describe in even simpler parameters than xy =k. It's basically the idea that you have this object that you can trade that at the maturity will be valued at 1 and the interest rate is determined by the discount that you have compared to one. And so this object is extremely simple. And I think I like to believe this is the right primitive because it does not depend on anything. And the reason we could not get there in the first place is that we needed to manage the rate for, for people, which. Once you have this layer of curators that are able to handle the complexity on behalf of simpler users, then it does not make sense anymore to. To internalize this by, by, by, by the protocol.
- [10:34]
David Hoffman
Maybe if I'm hearing your answer correctly, you know, aside from all the other reasons why, why it failed, one reason why Ether Delta failed was because there just weren't enough people trading on it. It was Dog UX in addition to that. And maybe the best thing, the best mechanism in that moment of time was actually Uniswap X times Y equals K because that matched the amount of participants that we had on Chain in that moment. And there was Dharma was a startup that I Remember back in 2017 and it was actually doing Morpho Midnight, it was doing fixed term fixed rate loans, peer to peer style loans, no central contract, unlike aave, unlike Morpho.
- [11:16]
Paul
And even AAVE had Eastland before, which looked like Dharma to some, exactly some extent. That was.
- [11:21]
David Hoffman
And so we've actually tried this before, but it never worked back then. And I think your answer is, well, we had not nearly enough market participants in the level of sophistication and liquidity in order to bootstrap that whole thing.
- [11:32]
Paul
I think that's mostly right. I think there's a few reasons, three reasons I think the design, so, okay, first thing is like gas at the time would not allow you to, you know, do crazy stuff, right? The second is the most important, which is the liquidity. And by liquidity I mean the collection of participants that altogether make markets active and easy to enter and leave without moving the price too much. You did not have that at all back then, right? And so of course Like a product like Compound, when it came out that, you know, provides you that simple user experience, was a much broader product market fit because the market at the time was like basically us with our Metamask wallet, right? And we knew nothing about it. Now our users, like, you know, Apollo is like the largest private credit fund in the world. They're, you know, you know, investing in Morpho. Those guys are the most complex portfolio manager in the entire world. Like they don't need someone to tell them, hey, my, you know, Dao is going to set the rate for you. They hate that. And I've pitched to all the largest traditional financial institutions in the world and pretty much half of them are like this interest rate model thing is the most stupid thing we've ever seen.
- [12:44]
David Hoffman
Which why do they think it's stupid?
- [12:47]
Paul
Because they don't. From their perspective as portfolio managers, they want to control for a given risk. They want to be able to control their rate and their terms. And the defi construct does not let you, does not make you owner of your terms. You basically the terms that you have are dictated either by a formula in the case of Morpho Blue or a governance in the case of aave. And basically to their eyes it's a retail product. It's basically like AAVE is the asset manager and you deposit money into it and they choose the risk profile for you. Right. And so, and, and so like basically they don't, they're. And from their perspective, they're the good asset managers. They don't want to rely on anybody doing that for them. Right. Which by the way is different than trading. I think defi trading and defi lending had a very different trajectory. And I think Uniswap has been able to get to much cleaner primitives sooner because it's lower dimension like lending involves risk and risk is multidimensional, which requires some management and everything if you want to handle it properly. But yeah, and I think the third reason is that frankly when you look at Eastland and Dharma, it's like the designs have a lot of problems, right? In general, you know, you mentioned the UX of East Delta and everything. It's just like there's a lot of thought that goes into midnight that for example, you don't have liquidity fragmentation in midnight. Like you can post one liquidity across 10,000 markets that are isolated and your liquidity will be available to borrow in all of those markets at the same time. Those are like key features that are truly zero to once in terms of, of like liquidity etc. That, you know. Yeah, basically would make that work.
- [14:31]
David Hoffman
Can we go through the actual, just construction of a Morpho midnight market? You talked about it a little bit and I kind of gave the four ingredients. But I want, I want to hear from you. Maybe you can explain from bottom up, like the, the building blocks that go into a Morpho midnight market. And then once we have that market and we have many markets, how do those kind of compose together too? But let's start from the bottom and we can go higher.
- [14:51]
Paul
Let's, let's construct the whole thing. So the core primitive is actually not so different from Morpho Blue. You have collateral assets, you have a loan assets, you have an oracle to price those collaterals and those loan assets. And instead of having an interest rate model, instead you have a term, right?
- [15:09]
David Hoffman
And so, and an interest rate model is the utilization curve, right? That's the same thing. Right. And that's the thing that the institutions are like. I don't want somebody else to tell me what that curve. Want to set that for myself.
- [15:21]
Paul
Yes, exactly, exactly. Is, is basically in Moro Blue, you, the market had a formula that dictates the race based on the amount of liquidity, like supply and demand that was in the market. In the case of Morpho Midnight, we externalize that and we say, hey, you know what? The market is going to price the interest rate, the market is going to set what it is. Right? And that's true in our perspective. That's true technology like, like we as morpho are computer scientists, we're not finance people. We want every financial component to be removed from the infrastructure. And that's what Midnight truly achieved in a way that we will never be able to do it. So anyway, basically a morpho midnight market should think of as a zero coupon bond that can be traded in order or like a zero coupon, like obligations. It's not exactly a bond, but an obligation that can be traded and the price of that obligation until the term dictates the amount of interest rate that you will have. Just like a traditional, like zero coupon obligation, basically. So that's the core primitive. Now in order to access those, those, those, those obligations. It's a bit like Morpho Blue. Morpho Blue, you have thousands of markets, Morpho midnight, you have thousands of like, you know, obligations. So you probably want to make sure, like to route through all those like different markets. You probably want to use a vault, right? And this vault is basically going to be in charge of allocating across the different markets that it's interested in. When you're a vault and you deposit into Morpho Blue, you just have to select the risk, right? Like the risk parameters, but you don't really choose the rate at which you invest, right? Whereas in midnight you can say, hey, here's the risk I'm willing to take. I'm willing to lend to a bitcoin backed loan market. And this time you can say, hey, I'm willing to lend at like 5% and not below 5%, right? And not only you can do that, but you can also manage the liquidity. So you can manage the rate, but also the liquidity. And you can say, hey, you know what? Happy, I don't care if I have my money right now, I can lock it for six months, in which case I can achieve higher capital utilization. Or you could want to say, hey, I really want a lot of liquidity. In which case you can, you, you can also do that. So to the eyes of the user, it looks, the vault looks like Morpho Blue vault, right? But behind the scenes, the curator, when you use Morpho bid night behind the scenes, they're gonna basically buy those obligations. And you should think of the vault as like aggregating those different obligations, right?
- [17:54]
David Hoffman
Aggregating the different obligations. But still below the hood are the two market participants that are new. So this is a new behavior from the, both the borrower and the lender, because the borrower is borrowing for a fixed lender is lending for a fixed term. And so that part of the whole supply chain, it needs to get bootstrapped by the whole midnight angle product arm, right?
- [18:16]
Paul
Yes, it has to be bootstrapped by the midnight product arm. But from a user perspective, you probably still want to be passive. Like the users in the Coinbase app and the Robinhood app, they still want to be passive to some extent. So this is why vaults are still important. And they will basically roll the different obligations on your behalf, et cetera. And it's actually part of, it's like
- [18:38]
David Hoffman
there we have like Dex aggregators and this is a little bit like Morpho Midnight. Like, I don't know what you call these things, the, the individual market for a morpho midnight market, obligations, these are aggregated. And so like if I'm a, if I'm a depositor looking for yield and I want, like, you know, I just want to get utilization on my usdc, then Morpho Blue will allocate across Morpho Midnight according to like my Intent, if you will.
- [19:04]
Paul
Yes, I think, I think that's right. But as a user of the vault, you would never see any of that like, you know, the curator is going to.
- [19:10]
David Hoffman
But it gets, but that's helping you bootstrap liquidity on the Midnight side because like there is USDC or whatever available to immediately come and fill in borrowing requests.
- [19:20]
Paul
Yes, exactly. And this is the sort of like, you know, part of the strategy of the launch of Midnight is that Midnight has billions of dollars already accessible. If we turn on the switch of vaults being able to allocate, it's a parameter in the code of Morphovaults is that we can basically say now all the morphovaults that have all those billions of dollars of liquidity, they can allocate into Midnight. We are conscious this is a big decision, there's a lot of liquidity involved. So we really want to take our time. We want the launch of Morpho Midnight to be as slow as possible. We want ecosystem participants, market makers, lenders, bars, to get familiar with the code, integrate into their API. We want to take our time. Define as Defi has been rough, like for the last, you know, six months. And then once we feel confident about the state of the market, you know, we can vote for basically the, the, the vaults to allocate into Midnight and that will bring like, you know, nine figure scale, ten figure scale, pretty, pretty,
- [20:20]
David Hoffman
pretty easily, I suppose, building the mechanism, the primitive of fixed rate, fixed term loans, that's one thing. And it's nice to have that on chain as a feature. But the uniquely Defi thing is the fact that there is also Morpho Blue right next door that you're able to flip the switch and then these things, you know, one plus one equals three. And there's some synergies here. I guess that that part is uniquely enabled by Defi.
- [20:45]
Paul
Oh, definitely. I think there's a million things that are uniquely enabled by, by Defi. I think the first thing is, you know, I like to sum up all the advantage of crypto by one word, which is openness. Because the system, the infrastructure is open, basically have two concrete benefits. The first one is you have better pricing because of very open and fierce competition. Right. When you think about it, like when Coinbase users are coming to Morpho on chain to borrow, they have tens of thousands of lenders that are competing to give their users the best rate possible. And because the infra is open, it's like completely global. Right. And so as a result, the Defi Borrow product of Coinbase delivers much better rates than what you would get if you were to use a centralized desk for the same financing opportunity. And that's like the key killer use cases that the spread between the lending rate and the borrowing rate is going to be crushed in a crypto environment because everything is so open. So that's the first benefit of openness and the second benefit is obviously accessibility. Like the code is open source, everything is readable, so it just have, it's much easier to integrate. Like we, we integrate in pretty much every single fintech in this world. Right? And, and it's like the same pieces of code that are being reused times and times over again. So it's like the compounding effects of open source, of open infrastructure are extremely strong, they're extremely hard to activate. You know, as we know this industry is like, there's like a lot of inertia to activate. But I can tell you like, like as we think about adoption and liquidity and the torque effects, it's just this thing is incredibly snowballing.
- [22:21]
David Hoffman
Let's talk about the, the secondary market activity that happens after a midnight. Sorry, what did you call it again?
- [22:28]
Paul
The obligation. We can say market.
- [22:29]
David Hoffman
Obligation. Market, yeah, the, the obligation. But I want to know like why you call it the obligation? Because you're talking about it. When a midnight morpho. Midnight market is created, we've created an obligation and that's a token. Right? And that's the zero coupon bond equivalent.
- [22:43]
Paul
Yeah, exactly. So it's a zero coupon obligation that basically you should think of like an object that, that is traded and so the market trades the object which is the obligation. That's like terminology, but whatever.
- [22:57]
David Hoffman
Right, and so like the idea, like maybe correct me if I get these details wrong, but the idea is that if you are offering 5% yearly on a one year loan, then this obligation is issued and it's worth 95 cents. Exactly. But then it will, it will settle, it will dissolve in one year at $1. And then this thing can be traded between market participants on elsewhere or elsewhere from morpho and it could be traded and that kind of creates, creates a market, a marketplace.
- [23:29]
Paul
How do you see the market happens on Morpho? So you can't like, I mean you could trade it elsewhere if you wanted to, but there's really no reason to because all the liquidity will be aggregated at the morpho market level.
- [23:41]
David Hoffman
So you set, how will that market emerge? Will that be like an order book?
- [23:46]
Paul
Yes, it is like an order book. It is like an order book. It is like an order book where basically you know, curators can come in and put, make offers. Like so in Morpho midnight you can make, make bar offers, take bar offers, make land offers and take land offers. You have really four types of orders. So as a, as a landmaker you can offer your liquidity to bars at a given rate. Right. And so when it gets taken by a borrower you basically are entering the loan. And now the two participants can decide to exit if they want to, in which case they can take existing offers or they can make offers themselves to exit. Right. But it's important that the primary and the secondary market are in the same construct. Right? Like the protocol makes almost no difference between the two. Which means that you know, if for example you are there is like this end of year maturity that is happening that you're in. Well, maybe you know, if you want to live one month before the end of the year, maybe you'll be able to match with someone that is here just because they wanted a one month maturity long. Right. And, and those are like the same markets basically.
- [25:00]
David Hoffman
And so the, the reason why I have some sort of like retail oriented aversion to fixed rate fixed term marketplaces is because an individual like contract or agreement or like market obligation is not the market. And the reason why I call things like Uniswap's X times Y Equals K or AAVE's model is because there it is, the market. It's just like aggregated a bunch of people. And so like when two parties come together and they agree on fixed rate fixed term loans, I'm like well that's so top down. That's, that, that's. How do you know that's even what the market going rate is? But I think what happens here is that when a ton of these things are created then in aggregate the market emerges because so there's so many individual building blocks producing it.
- [25:50]
Paul
No, I, I actually think you have both of those effects in midnight. So if, if I'm reading your question cor for a given obligation you can have, it's an end to end relationship just like on Uniswap or on aave. It's not like an otc. You could do OTC transaction if you wanted to through the midnet construct. But if you take the BTC USDC market and end of the year it functions exactly the same as a morpho blue pool or a nave pool, et cetera. It's like the given obligations are fungible. The same way your A Tokens are fungible. Right. So it is a market for a given obligation. Now on top of that, because you have so many obligations, you also have transversal network effects thanks to like multi market offers, callbacks. We can talk about this. But, but, but. Yeah. Does that make sense?
- [26:39]
David Hoffman
Yeah, I think so. The thing that I, I'm interested to see emerge is some sort of like interest rate curve on assets. Now I think like the dominant asset inside of Morpho Midnight is going to be stablecoins in dollars just because that's just the world that we live in. But there's going to be interest rates emerging on like non crypto assets or non stable coins like ETH and Bitcoin. And so maybe you can talk about that. You're smiling and you're nodding your head somewhat enthusiastically. So maybe maybe talk about like how interest rates or like bond markets emerge for like things like Bitcoin and ethnic.
- [27:16]
Paul
Yeah. The reason I'm laughing is because we released Midnight and then literally 10 hours later you had already 5 or 6 threads on the rate curve. Even though the protocol was just launching, there was 100k of liquidity or something and people were already drawing the rate
- [27:34]
David Hoffman
curves, doing TA on the rate curve.
- [27:36]
Paul
And I was like, guys, it's still very small market, anyone could manipulate that. But still, I think it's cool, right? And I think it's, it's true that you're going to have brand new data points, right, that you know, you frankly, you don't have in, in, in defi or even in finance, you know, for, for some of this, like as we tokenize assets, et cetera. So I'm, I'm very excited about this. I will say it's more like I don't think it has so much business value for Morpho in the short term. So it's like I need to like, it's a bit like inherent, like interest for me. But, but yeah, I think as the market participants get more complex, we will offer price discovery on a lot of different assets and they're like native interest rate. What I'm most excited about is actually not the price discovery of the rate of the given stablecoin, but more of the underlying trust assumption. What do I mean by this is that when you come to Morpho as a bar to borrow something, you have to prove yourself right to get the financing. So usually you come with a big stash of Bitcoin or a big stash of collateral, but Midnight lets you extend this to more than that if you want to so there's a module in the protocol that lets you express why you should be trusted. So that could be collateral, but that could also be your identity or that could be your, you know, receivables, whatever. And then the curators will be able to see this and then price it.
- [28:58]
Podcast Host/Announcer
Right.
- [28:59]
Paul
And that echoes to an article I wrote like a year ago, approximately that's called the Price of Trust, which you know, obviously I wrote in the context of midnight. And, and, and basically this is what I'm excited about is like more for midnight as a machine to price trust assumptions and why you should be trustworthy or credit worthy in general.
- [29:17]
David Hoffman
And anyway, so as a borrower I could, I could give extra reasons as to why I am trustworthy. And some can be very like hard coded on chain crypto native like collateral. But it could also just be like, I have this business and we make this much money and here are the documents to prove that. But it's up to you to believe that or not.
- [29:41]
Paul
Exactly, exactly. And this is the exciting part, you don't even need collateral at all. Like you could, I could come to the midnight market right now and say, hey, you know, I'm Paul, I'm like the CEO of this thing and I sign it, you know, I prove it in some capacity with a proving mechanism that has some trust factor. I'm, I'm, I'm requesting a hundred K. I'm sure people will lend to me, right? They probably lend at a terrible rate, but they're prices.
- [30:07]
David Hoffman
Yeah, the price that you'll have to. How, who would determine the rate? You would say like hey, a hundred
- [30:13]
Paul
thousand, whoever is willing to take the risk. And here's the key thing. When you externalize risk and you externalize, right? From the, Obviously like, you know, we've been, you know, you know this better than I do. Like it's been like six years since we talk about like under collateralized loans and we've always been asking how is my defi protocol going to underwrite under collateralized loans? Like, the answer is it does not. Like a piece of code is not here to give credit to people. Like, credit is complex. However, maybe the largest private credit funds in the world know how to underwrite those things.
- [30:43]
Podcast Host/Announcer
Right?
- [30:43]
Paul
And they'll give it a price. Right. And so the key things, the key elements that you need to have in place in order to unlock the next pockets of loans and under collateralized credit, etc. Is actually like externalizing the rate and externalizing the risk such that the market can price any type of Risk and maybe what you prove about yourself is like a little bit like you know, fancier and not that trustworthy but then the market will price it and say oh actually your, your statement like about your company, I don't believe that. I don't think that's a good document.
- [31:13]
Podcast Host/Announcer
Right.
- [31:14]
Paul
So they'll. But maybe it is right. And so they'll give you a right according to that.
- [31:18]
David Hoffman
Right. Because like somebody come in, could come in and a hey, we represent Apple. We, we are Apple. Here are our S1s. And then it could be fraud of course and it's not, it's not for Morpho midnight to ascertain whether that's fraud or not, but that all of that information is made on chain. Like it's just like public attestations.
- [31:37]
Paul
So this is, this is a module. And by the way, I should say we're not focusing on that for now. We're focusing something that's possible in the protocol but for now we're starting with the very borrowing. I mean not borrowing but like over collateralized crypto loans, etc. But that's something the basics would be able to share more in time. About is, is the protocol lets you express on chain trust signals about yourself. Right. Whatever that means. Could be an oracle. Like we don't say how it's a very general module. It's basically.
- [32:05]
David Hoffman
It's just like a memo field.
- [32:06]
David
Is it just.
- [32:06]
David Hoffman
Yeah, exactly.
- [32:08]
Paul
It's like an empty module and you can basically say hey, here is my whatever ZK proof of whatever. Like you know, and that the curators will assess this and will price it. Right. And I think, by the way, I think this is the answer to under collateralized loans. I think this world.
- [32:24]
David Hoffman
I see how that would work.
- [32:25]
Paul
It is right? That's exciting, right?
- [32:28]
David Hoffman
Absolutely. Yeah.
- [32:29]
David
Because.
- [32:30]
David Hoffman
Because it's like what you, what you're also doing is like if somebody like Apple, the company Apple for example wanted to get a line of credit, it's. It's on them to provide enough credit material to create trust in the market. And so they there need to get their lawyers to sign off on something like they need to make a public statement about this. Like yes, this is actually us, this is actually what we're committing to. And then the people probably supplying money to that market are like well if Apple doesn't follow through on that, I'm going to sue them because I'm going to take them to a court. But that's again outside of anything on chain.
- [33:07]
Paul
Exactly. The value of onchain is the matching, it's the open matching with end lenders with end bars which achieves better price discovery and better efficiency, which lowers the cost of capital for an Apple or for whoever, frankly. Right. It's not restricted to Apple. Like if you want to a home mortgage basically Morpho lets you run global auctions on every single lender in when you get your home mortgage like you're going to. Instead of doing like a just going to your bank and obey to whatever interest rate they give you, you're going to run an auction on 10,000 different banks right. Now in practice we are going to help facilitate this. Like obviously we're not responsible for the enforcement of any of that, but we can come up with a language for people to express why they are trustworthy. And if we, you know, a good language, good abstraction will allow for good capital formation and facilitate. So that's our role right in. In all of this. But I think overall this is the solution to like extending beyond the set of other clash that we have. Took us a lot of time to realize. I'm not going to lie like, but I think this is really the key of this.
- [34:15]
David Hoffman
The other thing that is exciting about that is that if that works, that starts to get identity to emerge on chain because you're going to want addresses and their credit history and who they are and their like history of repayment and all of a sudden like identity emerges out of that 100%.
- [34:31]
Paul
I think more for midnight is going to be the first PMF of the identity layer. The identity layer had a PMF problem because there was no business case. But now the business case is going to be very clear is that your cost of capital is going to be a few bips lower if you provide that identity primitive. Hence there's a clear value that you can achieve by having your identity on chain.
- [34:52]
David Hoffman
What assets do you expect to do well in morpho Midnight? Obviously stablecoins are just so prolific and I would expect stablecoin yield and stablecoin borrowing with basic collateral like Bitcoin and Ether, which is the status quo, to also continue. But like will there. Will there be new types of assets that will hit resonance with Morpho midnight?
- [35:10]
Podcast Host/Announcer
Yes.
- [35:10]
Paul
And I think first I should mention as you said that stablecoins is the major focus for us. Like in general one interesting statistic is that 92% of Morpho is loans are stablecoins whereas the average for lending protocols is like around 50% or 60%. So there's still a lot of like eth. Leverage lending, etc. Etc. We're actually the largest USDC like, like DeFi protocol on EVM by quite far now. And because we focus so much on, on just like because we think stablecoin markets are the one that will eventually grow the most. That being said, there is a lot of value. It's a smaller market, but there is a lot of value for allowing people to lend assets and to short assets, whether that is eth. Bitcoin, tokenized stocks at some points, like SEC lending for example. Securities lending in general is a big, big use case in trotfi. And so eventually morpho midnight should allow for this with the right compliance guardrails and yeah, and so I'd say I am excited because I think it's going to be a huge use case eventually if you look at traffine numbers. But I'm even more excited about like stablecoin lending in general.
- [36:20]
David Hoffman
What new entities do you think will be able to come on chain because of morpho midnight? Either like any sort of like partners that you have lined up to actually make markets happen on morpho midnight or, or just like what's the next most proximate Wall street institution who's like oh, finally they figured the crypto bros. And figured out fixed term fixed rate interest. Now I can go play on chain.
- [36:42]
Paul
Like who.
- [36:43]
David Hoffman
Who do you think that is?
- [36:44]
Paul
All the large ones that have a crypto arm. If they haven't touched midnight already, they will in the next 24 months. Right. And I'm not saying this just like, you know, like, like we, we literally talked to all of them, we actually built POCs with a bunch of them and, and some of them, they're not at POC stage anymore. They're actually like launching entire businesses. So which by the way is like a true interesting moment for the institutional adoption of crypto is like moving out of POCs. But yeah, I think, you know, the order of things has always been like wallets first, then exchanges, then fintechs, then neobanks, then asset managers then. And then the actual banks is the order of the adoption. And then for each of those buckets, you look at the most aggressive players and they will move in first, right? And then they will force the bigger players that are usually the most conservative in the category to, to lean in eventually.
- [37:37]
David Hoffman
And yeah, how does this fit into the whole neobank neo brokerage revolution that we're kind of watching on Ethereum? So like last year about this time there was this whole, whole movement and like attention on neo banks like oh, without. With stable coins. With such a proliferative growth of stable coins and easy to build walls these days, it's easy to make a Neo bank and like Etherfi kind of led that. Now we're getting into like, Neo brokerages. Well, now there's tokenized stocks on chain and now with tokenized stocks, it's easy to make a Neo brokerage a brokerage without actually being a broker dealer. I kind of see Morpho Midnight and Morpho Blue generally saying, like, well, don't you want margin? And if you have all of these assets on chain, like, can't morpho the platform, create margin accounts for all of these things?
- [38:20]
Paul
Yeah, 100%. Like, you know, Morpho is infrastructure for all those, like, players to connect to global networks to offer good yield products or loan products. Right. So it's like an absolutely essential piece. Like, if you want to offer some form of financial app, you have loans, you have yield, otherwise you're just not a good financial app. Right. It's going to be hard to defend without, without that. And, and I will say, though, I think it's an interesting revolution. I will say anybody that has distribution now will think about financializing their user base. I don't even know if financializing is a word, but basically, I think, I think, yeah, I'm French, so I sometimes I use words I'm like, not 100% sure, but I think anybody that has a surface of interaction with a large set of users will end up with user accounts that are powered by soft custodial wallets, like a dynamic turnkey or a privy. And from there they will be able to access global networks on chain, which will allow a Twitter or frankly, whatever app that has distribution to, or let the users earn interest on their balances. Or like, now you have Uber that has, you know, Uber cash, and they will let you earn interest through chains like on this or Airbnb or like whatever. So I think it's. You could see it both ways. It's like, oh, it's going to be great for Neobanks, but also everybody's going to become a new banks, including those that are not professional in your banks and that have the edge of having distribution from their other adjacent activity. Basically.
- [39:55]
David Hoffman
Yeah, you definitely saw that. This pattern that you're talking about kind of emerging like a decade ago with McDonald's and Starbucks, where like, Starbucks, you were like, you can deposit they. They had something like hundreds of millions of outstanding obligations to their own customers who had loaded up their like, Starbucks wallet with like $50 and then Starbucks was like collecting all the yield on that. And so like we saw early, early tremors of that. I remember talking about that a lot in 2021. And now, now what you're saying is like, well if anyone has any sort of distribution, you can turn it, you can turn your app into a Venmo with yield so easily.
- [40:28]
Paul
Yes, I think that's right. I think that's incredibly easy now. And that's also comes down to the point I was making about openness and accessibility is like literally ChatGPT can build a new bank like very easily thanks to basically like you know like defi where you can just like if you embed like a self custodial wallet, it's like so easy. And I think we reached this inflection point not so long ago by the way. I think it's like a three, three month thing where it became the easiest way to build like a financial app is on crypto rails. Like there's no it's easiest, it's easier. I don't think we have the quality of the financial products yet except in some areas like payments or yield sometimes but. But eventually it will just get better and better.
- [41:12]
David Hoffman
Talk about capital efficiency. Because institutions are going to come on chain, they're going to put their money on chain if and only if it is more capitally efficient for them to do so. And that's kind of always been the long promise of crypto is just your capital goes further in crypto. How does morpho midnight fit into this equation?
- [41:29]
Paul
Yes, capital efficiency ultimately is going to be everything. I think the cost of capital for loans being better on chain is going to be the largest, the biggest gravity pull for the next wave of adoption. And again I'm super biased because I'm building a protocol, but I really think it is, I really think financing is the cornerstone of finance and as the name hints at, and I really think financing is also some of the markets today in Tratfi that is uncompetitive and that gives a huge net interest margin to the financial system which we should account for like 200, 300 bips on the entire economy. And because on chain rails everything is open. If you have an infrastructure that lets you set the price, then you have open competition. And if you have open competition, you compress the net interest margin which is both the reason we're going to be hated and loved because that's going to create an immense amount of disruption.
- [42:35]
David Hoffman
And by the way, we threaten a bunch of business models but then we Also save other people a bunch of money.
- [42:41]
Paul
Exactly. And you know, it's like the story of tech is like disrupting industries. Took us a lot of time to disrupt finance because it's like it's a much slower industry for regulations reasons, for trust reasons, et cetera. But we're there now and I can tell you those, like those banks and asset managers, they take this problem seriously. Like they really understand that the way they were making money is going to disappear because of the openness of the chain. And basically you can take two postures. Either you prevent this from happening or you fully lean in. And because if you're first, then you have the opportunity to disrupt yourself and disrupt others before they do. And the reality of the game theory is that you should fully lean in because some others are already started to fully lean in. And yeah, you don't have the choice. Right. And I think actually Defi has much more leverage on TradFi now than people might think. It's like this is not a choice thing for them. They have to. Because some of their competitors are already leaning in.
- [43:39]
David Hoffman
Say someone took some Schroeden Freud in watching banks get unbundled. I would expect this would be a very big moment along that journey because like something that you said is like collapsing the net interest margin. Well, you're just talking about collapsing how banks make money and giving and putting it back at the margins. And so like, you know, there's been a bunch of things that we've invented in crypto that have created like this whole like bankless movement, technologically speaking, like one bankless money, Bitcoin and eth. Stablecoins, like the money of actual real banks. And then this is, is just like also just taking kind of the back end of banks and allowing it to get expressed on chain. And so like in 2026 we finally have fixed rate, fixed term loans. That is kind of where banks get a lot of their yield and supply a lot of just make a lot of their, a lot of their money. And so I so would suppose if somebody had a podcast called Bankless, they would be thrilled about this.
- [44:38]
Paul
I did. I actually did not make the connection.
- [44:41]
David Hoffman
How about what I was doing about
- [44:43]
Paul
like the, the, the sort of like what we were saying in, in the name of the podcast. I think, I think, I think that's right. I think it's not because just, just because fixed rate, fixed room is a big part of the banking industry that it's interesting. It's also because now it's market defined interest rate. This is More than being fixed rate, fixed term is because now it's a marketplace. This is how. This is the purest expression of we're going to have competitive cost of capital. This is it. We have an open market for, for, for, for trust. And by the way, this is, this is why I, this is why I do Morpho in general is one way to think about this. Net interest margin is so I like to think of borrowers as people that have ambitions to realize something in the world and they need capital to achieve it. Right. And they need the lenders, which are the people, the believers that the people that trust them to achieve stuff. Right. And I think of this as a very noble activity. Finance does not look always the most noble activity. It looks like the only industry that moves value around without creating value and yet takes a cat. Right? It sounds very extractive. But when you paint the picture of like, okay, people have ambitions, they want to realize them, people believe in them and so they transmit capital, it seems like a very important thing to do. Yet the cost that is bared on like the, at the infrastructure level that connects the two layers is very high. And it's like the 300 bps that we've been talking about on the entire economy. I think of Morpho's mission is basically collapsing the cost of trust, like collapsing the cost at which humans have to believe in one another and trusting one another. And you achieve this by providing open rails in which people can compete to offer the best possible terms to their counterparts. And frankly, this is why I work in crypto and what I get excited about all of those things that the promise is absolutely exhilarating in my perspective.
- [46:40]
David Hoffman
How much TVL do you think Morpho Midnight will have by the end of 2027, one and a half years?
- [46:47]
Paul
So, okay, I think everything is highly dependent on when we unlock the business cases for tratfi because, you know, if you look at the time today, like crypto backlogs is like what, a $60 billion market? It's great. I think Midnight is going to eventually eat a lot of that and will be the largely dominant player over anybody else, including Morpho Blue. But that's still in the order of magnitude of tens of billions. Right. And that's probably going to take a few years to get there. Anyway, what I'm excited about is what are the new addressable markets that were going to be unlocked by midnight? What are those like? Because the order of magnitude can very quickly change if you onboard new types of asset curators or asset managers in the network that basically handle trillions of dollars. Right. So I'm not saying obviously midnight will be trillions of dollars by 2027. Those are timelines. I don't fully control myself. But I think, I think, I think, I hope it will be more than $10 billion. That would be like, I hope it would have outgrown Morpho Blue. If that's not the case, I would be very disappointed, to be frank. And I would not be surprised if we've crossed like the hundred billion dollar mark then because it, you know, frankly, it like took two years to Morpho Blue to reach like 10, 10, $10 billion. So. So I think that's not unreasonable to think in those orders of magnitude. Yeah, yeah, yeah.
- [48:20]
David Hoffman
I did a podcast with the Blockchain Capital guys and they said $2 trillion is like conservative by 2030.
- [48:29]
Paul
For more for midnight.
- [48:31]
David Hoffman
Excuse me, for stable coins. For stable coins. $2 trillion of stable coins on chain by 2030. And I think that implies some sort of explosion in credit markets, credit borrowing and lending markets as well, because it's so fundamental and foundational to finance at large.
- [48:46]
Paul
Yeah, I agree with that. And to be fair, I'm very bad at quantifying predictions. I've turned out to be pretty good in defi, at defining directions and at the high level. But quantifying how much and when is like, depends a lot on maybe clarity not passing or clarity passing. It will influence a lot or things that are not in my control.
- [49:05]
Podcast Host/Announcer
Some exciting news. We are launching a new podcast to help people figure out the crypto cycle, how to navigate it. The best crypto cycle investor I know, his name is Michael Naito. He runs the Defi Report. This is the guy that sent me a sell alert before the 10:10 price drop happened. His cycle analysis has been absolutely on point. I've been following him for years, and this year we started recording weekly podcast episodes. Each one we get into his portfolio, what he's holding, the market structure and entry targets, fair market value of bitcoin and ether. And where we are in the cycle, there's new episodes that are released every Wednesday. They're 30 minutes, they're short, they're punchy. I think this crypto cycle is harder to navigate than most. So let's do it together. Go subscribe to this podcast, search the Defi Report. Wherever you get your podcasts, YouTube, Apple, Spotify, or find a link in the show Notes, there's a new episode waiting for you now.
- [49:52]
David
Hey, bankless nation, it's David. If you're hearing this. That's because you are listening to the free Bankless podcast. Did you know that there is a premium Bankless RSS feed? The premium feed has extra interviews that I do for my own personal research and just deeper questions that I want answered about the crypto industry. Questions that I want to answer so I can be more informed as an investor both at Bankless Ventures and also just in my own personal portfolio too. Also, there are no ads, which means if you listen to the premium feed instead of the free feed, you'll get about 20 hours of your life back every year because you choose to support Bankless directly. So if you're interested in getting extra content all while skipping the ads or you just appreciate what we do here and want us to keep doing it, we'd appreciate it if you signed up for Bankless Premium and there is a link in the show Notes to get started. Cheers to a good 2026.
- [50:34]
David Hoffman
I want to get your take on Hester Persis statements recently. She released some statements last week that I'd summarize them as like respectful to the sector, the vault sector because it's grown pretty large, while highlighting some key concerns that she has about the sector growing any larger. More specifically, she said that vaults may be investment companies or investment contracts, and she also said that lending strategies may create notes that are securities. What was your reaction when you read Hester Purse's statements?
- [51:03]
Paul
Yeah, so first I wasn't surprised. I actually last week I spent the entire week in Washington meeting multiple times with the sec, with the cftc, with the different senators and staffers, et cetera. So we're in like close contact with all of those regulators. I think generally I'm thankful of the thoughtfulness that goes into. I don't know if you read the full post, but it seems very reasonable to me. Like when you read it you're like hey, some of those vaults may be investment companies, right? And there's a bunch of vault stack out there. There's a bunch of different types of vaults and some of them are fully non custodial, like fully immutable where you can't change the risk parameters within the bounds of a time lock. And some others are frankly just fireblocks wallets. Right? You just deposit into the fireblocks wallet and then this fireblock wallet gets to manage everything. And there's a world spectrum. And yes, you know, I'm ready to believe that, you know, some of it is like investment, you know, companies, right. And some of it may not be right. And so I Think it's a very thoughtful statement to make. Like, you know, to her points, like if it looks like something, that it probably is that something and, you know, encourage curators and you know, just generally space actors to engage with the sec. I think they've been very open in, in my opinion over the last, you know, months, as we know. So. So yeah, I think them acknowledging the spectrum of vaults was like the most important piece for me is that they truly understand that there is like a whole like spectrum of like non custodiality control agency that a curator would have on the vault. And same for lending protocols. Like a lending protocol can have a lot of agency on how the risk parameters are set or no agency. Like, like it's the case for morpho.
- [52:50]
David Hoffman
Yeah, she said this line about vaults, this description is purposefully broad and generic. As with many new developments in crypto, this term does not have a specific, widely understood definition. And only someone who's been paying attention to crypto for like 5 plus years would be able to like have that realization that sometimes we come up with words and the word itself is just like over purposefully broad and generic. For example, the word token itself, like some tokens are literally securities and others are just like a receipt token. A utility. Yeah. Just doesn't actually explain anything.
- [53:23]
Paul
Go for it. Sorry, I was just going to say, frankly that's, you know, when I came up with the word curator, I. That was also on purpose. Right. I had no idea what this role was going to be about. Right. Like, and is that, you know, closer to an asset manager? Well, not really because it's non custodial and they can't really manage assets. But at the same time, there are some parts of the activity that resembles that. But like, is that, you know, necessarily manager or activities, et cetera. And so I think, you know, the safe bet is like it's a new thing, so you create a new word and then eventually, you know, as we, as we discuss with regulators and figure out like, we draw the line on what should be like an investment, like contract in that case, or not regulated under the sec, then you can maybe do a second iteration on the vocabulary you use in order to have maybe an extra objective like a network token or a securities token in order to clarify verbiage.
- [54:16]
David Hoffman
Did you listen to my interview with Andrew Hong? That's not long ago. So you know, you know, Andrew and his company heard.
- [54:24]
Paul
No, I'm not familiar.
- [54:26]
David Hoffman
He does like AI enabled inspect source of vaults. And so this vault deposits into that vault which deposits into these vaults. And so he, he like, has a startup that kind of like shows you a sort of topology of all the intertwining permutations, the frankly scary level of intertwiningness in a lot of the vaults. And so him and I were. Him and I were talking about just like the vault industry and it was. We were talking about the risks of said vaults. And we came down to the end of the podcast and this was after he's like scaring me with all the different, you know, combatorian combinations of different vaults out there. And just like if you, you think you are innocently supplying your USCC to get 6% in this vault, but then it explodes into 17 more vaults. And like, the, the problem, the problem statement that we kind of came up with is like, no one in the vault space is taking a liability because Morpho doesn't want liability because you guys just want to be a neutral tech platform and the curators don't want liability because no one wants liability. But like, our. The conclusion that we came down to is like, somebody in the vault vertical needs to take the liability and become registered and compliant with, you know, the three letter agencies, four letter agencies, so that they can, you know, I don't know what the correct term is. Maybe Hester had it in the, in her, her paper, just like investment manager or whatever. But somebody needs to take on a regulated duty so that this thing can be a little bit more compliant and the risk is managed. But then these people are taking more upside, so this whole thing can grow 100 times bigger. That was kind of like my takeaway.
- [56:05]
Paul
I. I think that's. That a. An interesting thought. I think there are basically three different actors. You have the distributor, the curator and the infrastructure. Right. And the vault infrastructure and the market infrastructure. Huge separate those, you know, as morpho, I think we think of our responsibility as like, we want to provide code that is, you know, safe and, you know, audited and et cetera. And also we want to provide a controlled environment for the curator. Like, for example, a morphovault can't deposit into other vaults. Morpho vault can only deposit into morpho markets. And it guarantees the user and the responsibilities that we have is that guarantees the user that vault curator can only add morpho markets within the period of a time lock. And during that time lock, it's important to understand that users can withdraw whether the stablecoins if the vault is liquid or the position in kind. No morpho vault curator that has the correct Parameters can steal your money without you having the right to withdraw. It's important to understand, because I give you an extreme example. Tomorrow North Korea hacks a morphovault that has the proper configs in place where basically you're going to have a few days to exit the vault until the time lock goes down. And that's non custodiality. So that's a guarantee and a responsibility that, that morpho as, as a technology platform, as the. Yeah. Then you have the curator and you have the distributor. The distributor surely has a responsibility because they choose everything right. And they're only going to offer one option for the user. And so they need to disclose as much as possible the risk to the user. And you know, I'm not, I'm the one to say if they should take like legal responsibility or not, et cetera. And then for the curator, I think similar, except it highly depends on the vault stack. Right. If you have full discretion on where the asset goes, then it's hard to think that if you're in control, then you're not liable. Right. Like it's, it's at least in my perspective. Right. But I think, you know, I take all of this with a grain of salt because there's a lot of nuances in every vault stack, in every configuration, etc. That I'm not always aware of. That's at least my, my basic, like, mental model.
- [58:25]
David Hoffman
I think I'm, I think I'm aligned with that. I'm. I'm trying to get down to the bottom of this. And so I'm doing this episode with you about midnight, but then also I'm doing an episode with the, the upshift in the beta people and also with the stakewise people because I, I want to answer the, kind of answer the question, who should have more legal liability in this vertical? Not that I think having legal liability is noble, although sometimes it is appropriate. But also that's how this thing gets bigger and safer at scale. And so, like, who should have reliability in how that looks? I'm sure. I mean, I'm sure Hester is on the case here. She is. Maybe I should just wait for her. But the curator feels the closest to having the most amount because they're the ones like deciding how much risk and what that risk is. And they also need to have more upside too. They need to have a little bit more skin in the game. And so I want that to be a more loaded, encumbered job that has more upside. That's kind of like my first intuition, but I'm sure that there's plenty of cases where like that doesn't quite make sense either.
- [59:24]
Paul
Yeah, I think that's probably my intuition as well, with the caveat that it's highly dependent on vault product and the vault infrastructure itself. Because you could imagine vault infrastructure that are so non custodial, where like, the reliance on the curator is purely operational and not managerial, and some other vaults where you expect them to manage and if this is the expectation from the user, then maybe it should be right that way. So I think it's all about the implicit contract that you have with the end user and how their money is going to be protected and how much do they expect. Reliance on you to protect your money, I think plays an important role here.
- [60:04]
David Hoffman
Cool. Paul, I'm excited to see Morpho Midnight grow. I'm sure you were very happy to get it out the door. Yes. And then that one day will come where you flip on the switch and Morpho Blue and Morpho Midnight will be intertwined, and that will also be exciting. But for now, we will watch Morpho Midnight Grow a little bit more organically and we're excited to get more institutions on change. Thanks. Thanks to this primitive. So thanks for coming on the show and telling me about it.
- [60:28]
Paul
Thanks.
- [60:28]
David Hoffman
David Bangle, Sanction. You guys know the deal. Crypto is risky, but not risky enough. You can lose what you put in, but the institutions are here. And so we're going even more westward. It's not for everyone, but we are glad you're with us on the bankless journey. Thanks a lot.
- [60:43]
David
It.