Coinbase and Morpho Team Up: Borrow Up to $1 Million Against ETH

Coinbase has launched a major upgrade to its crypto-lending services, enabling U.S. users (excluding New York residents) to borrow up to $1 million in USDC using their Ethereum as collateral. This capability is powered by Morpho Labs’ on-chain lending infrastructure, and it represents an important step toward mainstream access to decentralized finance (DeFi) via a trusted exchange.

The initiative ties together four critical trends: demand for liquidity without selling crypto, institutional-grade DeFi infrastructure, user-friendly platforms, and evolving regulatory comfort around crypto-backed loans.

 

How the Offering Works

• Borrowers pledge Etherum (ETH) which is converted into Coinbase Wrapped Ethereum (cbETH) on Base, Coinbase’s layer-2 blockchain. The cbETH is then deposited into a Morpho smart contract as collateral.

• In exchange, users receive USDC in their Coinbase account almost instantly. The loan product is integrated directly into the Coinbase mobile app, removing the user-experience friction common in traditional DeFi protocols.

• The maximum borrowing amount stands at $1 million USDC per user, depending on collateral value and eligibility.

• There are no fixed repayment schedules or deadlines—borrowers can repay any time. The key constraint is maintaining a healthy loan-to-value (LTV) ratio. If the outstanding loan amount including interest reaches approximately 86% of the collateral’s value, the position can be liquidated.

• Rates are variable and determined by the open lending market on Morpho, and as part of Coinbase’s interface the process is designed to feel familiar to users of mainstream financial apps.

---

Strategic Significance

Unlocking Liquidity Without Selling

A major advantage of this offering is that users retain exposure to their underlying crypto holdings while accessing cash liquidity. This can help avoid tax-triggering events that might come from selling crypto assets, while still unlocking value for things like down payments, major purchases, or diversifying other investments.

DeFi Infrastructure Meets Mainstream Exchange

Coinbase is leveraging Morpho’s protocol layer so that the decentralized lending infrastructure handles execution and risk, while Coinbase manages the user interface, onboarding, and regulatory overlay. This model blends DeFi innovation with the user experience and brand trust of a regulated exchange.

Regulatory Evolution and Risk Management

Crypto-backed loans have a checkered history, with industry failures in recent years (for example, centralized lenders filing for bankruptcy). This time, Coinbase and Morpho appear to be building with lessons learned: a trusted exchange interface, modern risk controls, transparent collateral mechanics, and clear liquidation thresholds. The exclusion of New York is a nod to continuing regulatory variations across jurisdictions but demonstrates broader U.S. availability.

 

What the Data and Context Reveal

• Morpho reports that its protocol supports billions in locked liquidity and has enabled institutions and exchanges to offer lending services in a modular, compliant way.

• One source places the collective crypto-backed loan market at over $1 billion already in a short period, driven by this Coinbase-Morpho product and similar initiatives.

• Earlier versions of Coinbase’s lending offering were closed suddenly amid regulatory issues, so this relaunch signals renewed confidence in design, oversight, and market timing.

• The Base blockchain integration gives the service lower cost, faster transactions and more seamless experience compared to older DeFi on-ramps, improving accessibility for mainstream users.

 

Risks and Considerations

• Volatility risk: If Ethereum’s price drops significantly, borrowers may face liquidation if the collateral value falls and the loan-to-value ratio breaches thresholds.

• Liquidity and contract risk: While Morpho is audited and established, smart contract protocols always carry some risk of bugs, hacks or operational failure.

• Regulatory change: Although the product is live, evolving regulation in the U.S. could alter lending terms, disclosure obligations or tax treatments tied to crypto-backed loans.

• Cost of borrowing: Rates are variable and market-driven; high demand or collateral stress could increase borrowing costs unexpectedly.

• User experience vs. risk exposure: The seamless interface may mask underlying complexity; users still need to monitor LTV, collateral status and market conditions.

 

Implications for Crypto and Finance

• The introduction of high-limit crypto-backed loans via a mainstream exchange opens the door for wealthy and institutional crypto holders to access large liquidity without asset sales, blurring lines between traditional finance and DeFi.

• This offering may accelerate use cases where holding crypto is strategic (for tax or value appreciation reasons) while accessing fiat liquidity for spending, investing or diversification.

• If this model succeeds, more exchanges may follow, and lending protocols may become core infrastructure rather than niche DeFi tools—potentially reshaping the financial profile of crypto markets.

 

Final Thoughts

Coinbase’s collaboration with Morpho to offer up to $1 million in USDC loans backed by Ethereum is more than a product launch. It is a signal that crypto infrastructure is maturing from experimental protocols to user-friendly, high-scale financial services.

For crypto holders, it offers a new pathway to liquidity without sacrificing exposure. For the broader market, it shows that DeFi protocols and mainstream exchanges can integrate to deliver real-world services.

The key will be execution, risk control, user adoption and regulatory acceptance. If all elements align, this could mark a pivotal moment where crypto-native finance moves into mainstream modes and the borrowing-against-assets model becomes widely accessible.

 

Stay tuned as this space evolves, products like this may become standard components in how we finance, borrow and invest in the crypto age.

 

Stay Connected

You can stay up to date on all News, Events, and Marketing of Rare Network, including Rare Evo: America’s Premier Blockchain Conference, happening  July 28th-31st, 2026 at The ARIA Resort & Casino, by following our socials on X, LinkedIn, and YouTube.

Alchemix v3 and the Surge of ALCX: Is This Just the Beginning?

 

The ALCX token is soaring, up as high as 200% in the last two days, and traders are wondering if this is the start of something much bigger. The rally coincides with mounting anticipation for Alchemix v3, the protocol’s most ambitious upgrade yet, which promises to revolutionize how self-repaying loans and decentralized yield work across DeFi.

With new features, ongoing audits, and a community buzzing with excitement, Alchemix v3 is positioning itself as one of the most transformative developments in decentralized finance this year.

 

What Makes Alchemix v3 So Important

Alchemix built its reputation around a simple but powerful idea: self-repaying loans. Users deposit yield-bearing collateral, mint synthetic alAssets such as alUSD or alETH, and let yield progressively extinguish your debt. v3 keeps that core idea, but it changes where and how redemption pressure is handled in order to stabilize alAssets and improve fairness between borrowers, LPs, and arbitrageurs.

Version 3 retains that core innovation but introduces a completely new architecture designed for stability, efficiency, and growth.

 

1. A Stronger Foundation for Self-Repaying Loans

In previous versions, Alchemix loans depended heavily on fluctuating yields. With v3, the system gains predictability and balance through fixed-duration redemption periods. When users deposit stablecoins like USDC to mint synthetic assets such as alUSD or alETH, they will now have the option to redeem them one-to-one for their underlying collateral after a set time window.

This approach strengthens price pegs and prevents instability that can arise from volatile yield inflows. It also creates a more transparent redemption process, giving users clear expectations for how and when they can reclaim their collateral.

 

2. The Meta-Yield Token: A New Core Mechanism

Alchemix v3 introduces the Meta-Yield Token (MYT), a DAO-managed system that aggregates yield from multiple strategies across chains. Instead of forcing users to pick individual strategies, MYT automatically balances yield opportunities, optimizing for safety and return. The MYT is a composite of yield strategies integrated into one token, built on Morpho V2.

This design allows the Alchemix DAO to allocate capital dynamically, ensuring that collateral continues earning yield efficiently. The composition of the Meta-Yield Token (MYT) will differ across various chains, offering users a diverse mix of strategies tailored to their preferred risk levels...from conservative, low-yield options to more aggressive, high-return approaches. This design simplifies the yield-generation process, giving users a seamless and powerful experience that balances flexibility with accessibility.

 

3. Higher Capital Efficiency and Smarter Borrowing

One of the biggest changes in v3 is the increase in loan-to-value (LTV) ratios, allowing users to borrow up to 90% of their collateral in some pools. This boosts capital efficiency and makes the protocol more competitive with leading lending platforms. High loan-to-value borrowing of up to 90% requires strong protections.

As with any DeFi platform, there are inherent risks such as smart contract bugs, economic exploits, or poor strategy management that could lead to losses. Because the Meta-Yield Token (MYT) draws from multiple yield strategies, any underperforming strategy could affect the overall collateral base.

To address this, Alchemix v3 includes a transparent and well-defined liquidation framework that activates only if the MYT’s backing falls short. Liquidations are guided by fundamental oracles measuring real collateral value rather than volatile market prices, helping the system remain solvent and stable even under stress.

 

4. Security and the Audit Process

Before Alchemix v3 launches publicly, it is undergoing a public audit competition on Immunefi. Developers, researchers, and security specialists are reviewing every part of the new system, with a reward structure to incentivize discovery of vulnerabilities.

In addition to the audit competition, the team has hosted a technical walkthrough of the codebase, emphasizing transparency and security readiness. Alchemix’s reputation for careful, deliberate development continues to build trust among long-term holders and new investors alike.

 

The Market’s Reaction: ALCX Is on Fire

The excitement around v3 has spilled over into markets. Over the past 48 hours, ALCX surged as much as 200%, climbing from the low single digits to over $20 in major trading pairs. The spike in price coincides with growing speculation that the v3 upgrade could trigger renewed activity and liquidity in the protocol’s ecosystem.

This is not just a speculative rally. The token’s movement reflects a combination of fundamental optimism and investor enthusiasm for Alchemix’s evolution into a fully integrated, multi-chain DeFi platform. The market is reacting not just to hype, but to real, measurable progress in protocol design and governance.

 

Why People Are Paying Attention

1. Fundamentals Over Hype: Alchemix v3 introduces tangible, mechanical improvements that directly address issues of efficiency, yield consistency, and peg stability.

2. Proven Innovation: Alchemix pioneered the concept of self-repaying loans, and v3 builds on that legacy with a more sustainable model.

3. DAO Empowerment: The new Meta-Yield Token design increases transparency in how capital is deployed, appealing to both DeFi veterans and institutional watchers.

4. Upcoming Catalyst: The completion of the public audit and mainnet launch could represent major short-term catalysts for price and total value locked (TVL).

 

Looking Ahead: Is This the Start of a New Chapter for DeFi?

If Alchemix v3 delivers on its promises, it could set a new standard for decentralized lending. The upgrade’s combination of high capital efficiency, predictable redemptions, and streamlined user experience positions it as a next-generation alternative to traditional lending and yield protocols.

The surge in ALCX’s price may be more than a short-term pump — it could be an early signal that the market is recognizing the potential of self-repaying DeFi loans at scale. With the audit nearing completion and excitement building across the ecosystem, Alchemix v3 might represent the start of a broader wave of innovation in on-chain credit systems.

 

Final Thoughts

The ALCX rally tells a story that extends beyond price charts. It reflects renewed confidence in DeFi’s ability to evolve, adapt, and solve its own structural challenges.

With v3 introducing fixed-duration redemptions, a DAO-managed yield layer, and dramatically improved borrowing efficiency, Alchemix is making one of the most meaningful leaps in decentralized lending since its inception.

 

If markets are any indication, investors are already taking notice. Whether the price stabilizes or continues upward, one thing is clear — Alchemix v3 has reignited momentum in DeFi, and ALCX’s explosive rise may just be the opening chapter of what’s to come for this innovative team.

 

Stay Connected

You can stay up to date on all News, Events, and Marketing of Rare Network, including Rare Evo: America’s Premier Blockchain Conference, happening  July 28th-31st, 2026 at The ARIA Resort & Casino, by following our socials on X, LinkedIn, and YouTube.