Morpho USDC/weETH Market - Restaked ETH Lending

What is Morpho USDC / weETH?

Morpho USDC / weETH is an isolated lending market on Morpho Blue where suppliers lend USDC and borrowers use weETH (ether.fi wrapped eETH) as collateral. This market serves the liquid restaking ecosystem, enabling weETH holders to access USDC liquidity.

How This Market Works

This market connects stablecoin lending with restaking:

Supply USDC to the lending pool
Receive vault tokens representing your position
Earn interest from weETH-collateralized borrowers
Withdraw USDC plus yield (subject to utilization)

Restaking Collateral: weETH represents liquid restaked ETH earning both staking and restaking yields.

What Assets Are Involved

Supply Asset: USDC Collateral Asset: weETH (ether.fi wrapped eETH) Market Type: Isolated lending with fixed LLTV

weETH characteristics:

Liquid restaking token from ether.fi
Earns staking + EigenLayer restaking yield
Wrapped non-rebasing version of eETH
Growing DeFi integration

ether.fi and Restaking

weETH represents:

ETH staked through ether.fi
Restaked on EigenLayer
Multiple yield sources
Points and reward accumulation

Market Considerations

This market features:

Higher yields reflecting restaking premium
Growing restaking narrative
Multiple protocol dependencies
ETH-correlated collateral dynamics

Risk Disclosures

Smart Contract Risk: Exposure to Morpho Blue, ether.fi, and EigenLayer. Restaking Risk: EigenLayer slashing could affect weETH value. ether.fi Risk: Protocol-specific risks in eETH/weETH. Oracle Risk: Accurate weETH pricing is essential for liquidations. Protocol Stacking Risk: Multiple protocols increase complexity. Utilization Risk: High utilization may prevent immediate withdrawals. Points Risk: weETH value may include speculative points premium. Regulatory Risk: Restaking regulations could affect operations.

Morpho USDC / weETH