Stake DAO ships lending beta via Morpho, letting LPs borrow against OnlyBoost positions while yield keeps stacking

Stake DAO has launched a beta lending product on Morpho that lets users borrow against their OnlyBoost liquidity provider (LP) positions while those LPs continue to earn yield and rewards. The initial announcement describes “Stake DAO Lending (Beta)” as live on Morpho, enabling users who deposit Curve LP tokens into OnlyBoost vaults to use those positions as collateral in Morpho markets instead of having to unwind their yield strategies first. OnlyBoost is Stake DAO’s strategy layer for boosted Curve LPs, which routes deposits between Stake DAO’s own veCRV-powered locker and other boost providers like Convex to maximize CRV and extra rewards. The Morpho x Stake DAO integration, outlined earlier in a Morpho governance grant proposal, involves a Morpho-specific wrapper for OnlyBoost v2 so that Curve LPs locked in OnlyBoost can be treated as collateral on Morpho while still receiving CRV and other claimable rewards, effectively turning yield-generating LP positions into productive collateral. Stake DAO has also promoted a curated frxUSD vault on Morpho that lends against Curve OnlyBoost LP collateral, illustrating the combined design: stablecoin lenders earn yield from borrowers who are leveraging their boosted LP positions rather than idle tokens. This matters because it unlocks composability for boosted LP collateral: users can keep farming Curve incentives through OnlyBoost while simultaneously accessing credit on Morpho, increasing capital efficiency for liquidity providers and expanding the range of collateral types available to Morpho’s open credit markets. For Stake DAO, the integration deepens the role of OnlyBoost within DeFi’s lending stack and could help capture more of Curve’s LP base (billions in historical TVL) as on-chain collateral, while for Morpho it showcases its modular, permissionless architecture for supporting custom collateral wrappers and more complex yield-bearing assets.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Stake DAO (@StakeDAOHQ) on X (x.com)
• MIP 93 - Call for Grants - #19 by CHAGO - Morpho Governance Forum (forum.morpho.org)
• Stake DAO (x.com)
• Only Boost – Stake DAO Docs (docs.stakedao.org)
• stake-dao/only-boost - GitHub (github.com)

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• Lending
• FRAX
• Morpho
• frxUSD