Morpho's new product, Midnight Fixed Rate, Fixed Term Lending, intuitively feels like Pendle's lending redesign. The research is as follows The biggest difference between it and the traditional lending model (aave) is that there is no interest rate curve, and the interest rate is traded. This is similar to Pendle's approach, for example, if a unit that can pay 1 USDC at maturity is now traded at 0.95 USDC, then the interest rate is 1/0.95-1 ≈ 5.26%. That is to say, the buyer will now pay 0.95 USDC and receive 1 USDC back upon maturity, with a fixed income. Furthermore, based on this tradable principle, both buyers and sellers do not need to wait for the deadline to expire and can exit through the secondary market. What is the difference between Pendle and Pendle? Pendle is essentially based on the splitting of a revenue asset, with the premise that the asset must generate revenue or points. This can form a combination of PT and YT. Pendle is the future profit of the transaction. Midnight does not have this requirement. Its underlying structure is to handle a lending relationship, which has a corresponding Pendle PT part, but does not have something similar to YT. Its demand comes from someone wanting to borrow money and someone wanting to lend money, and both parties transact at a fixed price, forming a fixed rate lending relationship. Midnight is trading future debt/credit. Pendle, as we all know, is traded through its own AMM, while Midnight is a quoting mechanism where the maker releases a quote and the taker finds it and submits it to the contract. A very interesting design is that it has a callback mechanism, where the maker can set a callback in the offer, without locking funds in advance, and can continue to place funds on the Morpho. Only when the offer is executed, the callback will be called to withdraw your funds from the Morpho market and transfer them to complete fixed rate transactions. This is very friendly to the efficiency of fund utilization. It is different from the existing lending logic, and I think if this thing can run smoothly, it has the opportunity to bring incremental market.