Morpho WETH/weETH on Base - Restaking Leverage

What is Morpho WETH / weETH on Base?

Morpho WETH / weETH on Base brings the popular weETH-collateralized ETH lending market to Base network. WETH suppliers earn yield from liquid restaking token holders who borrow ETH while maintaining their weETH staking position.

How This Market Works

The market enables leveraged restaking:

WETH suppliers deposit to earn interest
Borrowers lock weETH as collateral
weETH continues earning restaking rewards
Low Base gas costs improve efficiency

Restaking Leverage: Borrowers can use ETH loans to acquire more weETH, amplifying their restaking exposure.

What Assets Are Involved

Supply Asset: WETH on Base Collateral Asset: weETH (EtherFi wrapped eETH) Market Type: Liquid restaking leverage Network: Base (Coinbase L2)

weETH on Base:

Bridged from Ethereum mainnet
Maintains restaking yield accrual
Strong liquidity via bridges
Growing Base DeFi integration

Base Network Benefits

Operating on Base provides:

Minimal gas costs for all users
Coinbase backing and security
Fast transaction confirmation
Growing liquidity ecosystem

Restaking Loop Strategy

Common use case involves:

Deposit weETH as collateral
Borrow WETH against it
Convert WETH to more weETH
Repeat for leverage

Risk Disclosures

Smart Contract Risk: Exposure to Morpho Blue, weETH, and Base bridge contracts. Layer 2 Risk: Base sequencer centralization and network considerations. Restaking Risk: weETH involves EtherFi and underlying validator risks. Bridge Risk: Cross-chain weETH requires bridge security. Depeg Risk: weETH may trade below NAV during market stress. Leverage Risk: Looped positions amplify both gains and losses. Oracle Risk: Accurate weETH pricing on Base is essential. Liquidation Risk: ETH volatility could trigger cascading liquidations.

Morpho WETH / weETH Base