Uniswap Launches Earn Feature Powered by Morpho Lending Vaults

Uniswap has launched Earn, a self-custodial lending feature that allows users to deposit USDC, USDT, and ETH directly into Morpho vaults on their platform.

Uniswap Earn accommodates USDC, USDT, and ETH

Earn is available through the Uniswap Web App and Wallet, broadening the platform’s offerings to include on-chain lending alongside token swaps and liquidity provision.

Users can pick a supported asset, designate an amount, and authorize the deposit with a single signature to start earning interest from borrowers in their chosen lending markets.

The initial asset options include USDC, USDT, and ETH, all securely held in vaults on the Ethereum mainnet. According to Uniswap’s announcement, users can withdraw their funds at any time, with no lockup required.

While Uniswap does not impose a separate fee for Earn, depositors are responsible for standard Ethereum transaction fees, which may complicate smaller investments during periods of network congestion.

Deposited assets will be displayed alongside other holdings in the Uniswap portfolio dashboard, showing the invested amount, current yield rates, and total earnings while monitoring deposit and withdrawal activities.

Morpho and Gauntlet manage the lending framework

Morpho has crafted the permissionless lending framework for Earn, while Gauntlet oversees vault curation and allocates deposits across approved markets.

This vault curation frees depositors from having to independently assess lending pools, collateral types, and utilization rates. Gauntlet sets exposure limits and reallocates capital according to market conditions, though depositors should be aware of the risks involved with these allocation strategies.

Currently, Morpho manages around $11.79 billion in deposits and $4.15 billion in active loans within its ecosystem. The protocol previously reported expectations to increase deposits from $5 billion at the beginning of 2025 to $13 billion by the end of Q3 that year.

During this period, active loans expanded from $1.9 billion to $4.5 billion. Lenders garnered an annual interest of $227 million in 2025, marking a 400% increase compared to 2024, according to Morpho’s annual report.

Earn broadens Uniswap’s services beyond basic trading

Earn offers Uniswap an additional channel to engage users beyond trading. Instead of leaving idle stablecoins or ETH to external lending services, users can now access lending vaults directly through the same interface used for swaps and portfolio management.

This integration enhances Uniswap’s competitive stance against established lending platforms like Aave and Compound. Its key asset is its established trading user base, allowing seamless transitions between swapping and lending without the need to switch applications.

For users in the U.S., Earn provides an on-chain lending alternative to traditional bank savings accounts. Deposits are not insured by the FDIC, and self-custody involves risks linked to smart contracts, collateral, liquidity, or stablecoins.

Yield rates are subject to variability; interest rates can decline if deposits exceed borrowing demand, indicating that the displayed annual percentage yield is not guaranteed for the entire deposit duration.

UNI price fluctuates slightly post-Earn launch

As of this update, UNI is trading around $4.30, reflecting a drop of approximately 2.8% over the last 24 hours, along with an impressive 12% increase in the preceding week.

The token showcases a market capitalization of nearly $2.68 billion, with daily trading volume around $376 million. Recent price changes do not seem to be directly linked to the launch of Earn.

Adoption is likely to depend on the yields from the Gauntlet-curated vaults, Ethereum transaction fees, and users’ readiness to accept inherent lending market risks. Uniswap has yet to clarify if Earn revenue will be distributed to UNI holders, making it essential to monitor deposit metrics and user retention in the initial phases.