Data compiled by Woofun AI shows that assets under Coinbase's custody have emerged as the primary liquidity source for the decentralized lending protocol Morpho. USDC and cbBTC collectively represent 53% of Morpho's total platform deposits, with Coinbase users contributing 83% of cbBTC deposits and 59% of USDC deposits.

The borrowing side similarly relies on the Coinbase ecosystem. Of the $2.3 billion in USDC borrowed on Morpho, approximately $1.2 billion originates from Coinbase users utilizing cbBTC as collateral, accounting for more than half of the total borrowing volume. This dynamic underscores a symbiotic relationship where Coinbase serves as the user acquisition and asset inflow engine, while Morpho functions as the revenue layer facilitating on-chain operations. Woofun AI analysis suggests this case confirms that distribution channels often wield greater influence than underlying technology in the crypto industry.