Morpho WETH/cbBTC - Coinbase Bitcoin ETH Lending

What is Morpho WETH / cbBTC?

Morpho WETH / cbBTC is an isolated lending market where WETH is the loan asset and Coinbase wrapped Bitcoin (cbBTC) serves as collateral. This market enables Bitcoin holders with cbBTC to access ETH liquidity.

How This Market Works

Cross-asset lending:

WETH suppliers earn yield from borrowers
Borrowers pledge cbBTC as collateral
Interest rates adjust with utilization
Automated liquidations protect lenders

Coinbase Bitcoin: cbBTC provides Coinbase-custodied Bitcoin exposure.

What Assets Are Involved

Supply Asset: WETH (Wrapped Ether) Collateral Asset: cbBTC (Coinbase Wrapped Bitcoin) Network: Ethereum mainnet Market Type: Cross-asset lending

cbBTC characteristics:

Coinbase custody model
Regulatory compliance focus
Growing DeFi integration
Single custodian simplicity

Use Cases

Borrowers access this market for:

ETH liquidity against cbBTC holdings
DeFi strategies with BTC backing
ETH/BTC trading positions
Leverage without selling Bitcoin

cbBTC vs WBTC Comparison

cbBTC offers:

Simpler custody (single entity)
Coinbase regulatory framework
Newer with less DeFi history
Growing acceptance

Risk Disclosures

Smart Contract Risk: Morpho Blue, WETH, and cbBTC contracts. cbBTC Custody Risk: Coinbase single-custodian model. Price Volatility: BTC/ETH ratio fluctuations. Oracle Risk: Accurate cross-asset pricing required. Regulatory Risk: Coinbase subject to US regulations. Utilization Risk: WETH withdrawal timing may vary. Newer Asset Risk: cbBTC has shorter DeFi track record.

Morpho WETH / cbBTC