THE PRICE OF TRUST

Summary from the TLDR Crypto newsletter

Debt's essence has always been trust, and loans should be priced by openly auctioning trust assumptions like collateral, contracts, and reputation. Standardizing and broadcasting these trust factors enables competitive bidding across all counterparties, ensuring optimal terms. Lending protocols must minimize their own trust impact through immutable, verifiable infrastructure, leaving loan approval and pricing to free markets. Morpho aims to embody this framework by facilitating trust-priced lending across the full spectrum of collateralized and undercollateralized scenarios.