Hi folks — we built a new product at @coinbase that lets you borrow USDC against Bitcoin, fully onchain and dead simple to use. 

We call this the DeFi mullet. CeFi in the front and DeFi in the back. 

This was a year long project with first principles thinking. 

➡️ Doing an AMA through the weekend. Fire away questions or thoughts.

Product @ Coinbase. Techno optimist 🛠️

Do you have a liquidity buffer to deploy as credit in case product adoption picks up and the underlying pool's utilization rate goes through the roof? "Mullet users" might keep a close eye on their health rate but not realize that the cost of their debt is skyrocketing. 

Super edge case but curious to know if it was accounted for.

It begs the question of educating these users. If they log in while their borrowing rate is (temporarily) 50% higher than what they had signed for, they might freak out.

DeFi has a steep learning curve and can feel very scary if you don't understand all the underlying logic of things.

Good question. We are aware of the liquidity constraints of DeFi. Hence why we’re also open to integrating a multitude of protocols depending on the needs of our users. We currently don’t plan to use our balance sheet to finance any of the credit. 

Liquidity begets liquidity though and Morpho can scale as is.