Uniswap Launches Earn Feature Using Morpho Lending Vaults

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

Uniswap Earn supports USDC, USDT, and ETH

Earn can be accessed through the Uniswap Web App and Wallet, enhancing the platform’s capabilities to include on-chain lending alongside token swaps and liquidity provision.

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

The initial asset offerings include USDC, USDT, and ETH, all securely held in vaults on the Ethereum mainnet. Users can withdraw their funds at any time without a lockup period, as outlined in Uniswap’s announcement.

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

Deposited assets will be visible alongside other holdings in the Uniswap portfolio dashboard, showcasing the invested amount, current yield rates, and total earnings while tracking deposit and withdrawal activity.

Morpho and Gauntlet supervise the lending framework

Morpho crafts the permissionless lending infrastructure for Earn, while Gauntlet manages vault curation and the allocation of deposits across approved markets.

This vault curation eliminates the need for depositors to individually assess lending pools, collateral types, and utilization rates. Gauntlet sets exposure limits and reallocates capital based on market dynamics, although depositors acknowledge the risks related to these allocation methods.

Currently, Morpho oversees roughly $11.79 billion in deposits and $4.15 billion in active loans within its ecosystem. The protocol previously reported a growth in deposits from $5 billion at the beginning of 2025 to $13 billion by the end of Q3 that same year.

During this time, active loans increased from $1.9 billion to $4.5 billion. Lenders have accumulated an annual interest of $227 million in 2025, denoting a 400% increase compared to 2024, according to Morpho’s annual report.

Earn broadens Uniswap’s offerings beyond simple trading

Earn provides Uniswap with an additional avenue to engage users beyond trades. Instead of relegating idle stablecoins or ETH to external lending services, users can now directly access lending vaults through the same interface used for swaps and portfolio management.

This integration solidifies Uniswap’s competitive advantage against established lending platforms such as Aave and Compound. Its primary asset is its established trading user base, enabling seamless transitions between swapping and lending without needing to switch applications.

For users in the U.S., Earn acts as an on-chain lending alternative to traditional bank savings accounts. Deposits aren’t insured by the FDIC, and self-custody brings risks linked to smart contracts, collateral, liquidity, or stablecoins.

Yield rates may vary; interest rates could decrease if deposits outpace borrowing demand, suggesting that the displayed annual percentage yield is not guaranteed for the entire deposit duration.

UNI price adjusts slightly in response to Earn launch

As of this update, UNI is trading around $4.30, marking a decline of about 2.8% over the last 24 hours, alongside a notable 12% rise in the preceding week.

The token exhibits a market capitalization of nearly $2.68 billion, with a daily trading volume around $376 million. Recent price movements do not seem to directly correlate with the debut of Earn.

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