Compound DAO greenlighted Morpho-powered lending vaults on Polygon, proposed by its major delegate. The decision has sparked debate—some see it as a strategic move to revitalize the stagnant protocol, while others view it as a shift away from Compound in favor of its competitor, Morpho.

Morpho’s custom lending markets are rapidly capturing significant market share in the DeFi lending space. Its growth has not been welcomed by its leading competitor, also decentralized, Aave lending protocol.