After the Layer 2 Era: Is Morph the Next Target for Air Force? The Strongest U Card Has Emerged? A Detailed Exploration of Morph’s Vision and Products.

03/28/2025

Due to the recent Morph Black whitelist activity, the discussion around Ethereum Layer 2 Morph has surged. The narrative of consumer-grade public chains has become more concrete, with the launch of the official public chain U card (a card that uses stablecoins and cryptocurrencies as payment methods, primarily Visa and Mastercard) combined with utility NFTs. However, in this cycle, L2 has shifted from being a top-tier narrative to a preferred target for short-sellers. What is the narrative of the Morph consumer public chain? Can it break the “L2 is dead” theory? This article will deeply analyze Morph products.

What is a consumer-grade public chain?

According to reports, the first layer of Morph’s vision for a consumer-grade public chain is to transform DeFi, making it more accessible to ordinary users. The second layer focuses on on-chain application scenarios, concentrating on how to bring everyday users onto the chain. The third layer is the payment solutions, with Morph Black and Morph Pay being part of this, where the official public chain directly launches the U card, binding utility NFTs.

First Layer: Transforming DeFi

A more specific case provided in the news is Kaboom, a TG BOT. It can be understood that the TG BOT, which is tied to social media, is generally easier for Web2 users to engage with on-chain transactions, referencing Sati on WhatsApp. However, everyone seems to be working on TG BOTs, so WHY Morph?
(Can WhatsApp facilitate cross-border transfers? Sati has completed $600,000 in pre-seed funding, with investors including the third richest person in Mexico)

On the other hand, if we don’t follow the trading bot route and want to learn from the Mini App concept, Telegram has already closed off this path, as it currently only supports the TON chain. If we really want to make an impact on social media, at least KAIA still has the advantages of LINE and KakaoTalk.
(Exclusive Interview with Kaia Public Chain: Introducing the brand-new EVM-compatible public chain launched by Kakao and Line)

However, there is a clever idea; the previously introduced Hana Network has received investment from Morph. Hana Network is a lightweight financial interface that lowers the barrier to entry for decentralized finance through an entertaining user interface. Although Hana Network is currently working on Hyperliquid’s frontend, this might not preclude support for Morph.
(Public sale below VC valuation has become a trend; will the Hana Network incubated by Binance be the final piece in Hyperliquid’s counterattack against CEX?)

Second Layer: On-Chain Application Scenarios

The news cites Impakt combining token economics with home fitness, but such cases were already popular during the Stepn era and did not yield good results. So, WHY Morph?

Third Layer: Payment Solutions

This might be the most worthy part to discuss; the product line we see is Morph Pay, and the flagship product is the recently discussed U card Morph Black. Max Resnick previously explained his views on the relationship between Ethereum’s mainnet and Layer 2, stating that transactions like buying coffee or small transfers can be compressed using Layer 2, but fundamentally, Layer 1 should still be the place where people transact. Morph’s idea of applying the payment method here might be promising.
(Ethereum developers speak out about development dilemmas, revealing that Ethereum has deviated from the right track)

Currently, Morph’s positioning is quite similar to Infini, allowing funds to be transferred to accounts with annualized yield returns, with the official stating that annualized returns could be as high as 30%. Infini’s previous returns were primarily built on Morpho’s Vault, which is quite transparent. I am curious about the source of Morph Pay’s returns and whether it will emulate Infini in establishing a transparent revenue channel.

Based on past experiences, Morph Pay can be initiated first, initially offering users high annualized returns in the form of Morph tokens. Once the marketing budget runs out, this will decrease, essentially functioning as a liquidity mining scheme in DeFi.

Morph Black Card Analysis

Currently, it appears that the card is issued in collaboration with DCS Card Centre, a compliant card issuer in Singapore. DCS’s D-Vault feature allows cardholders to increase their credit limit or payment balance through deposits.

In simple terms, suppose your credit card limit is SGD 2,000, but you need to make a purchase of SGD 3,000. By depositing SGD 1,000 (in cash/digital assets) into D-Vault, your available limit increases to SGD 3,000 (original limit 2,000 + deposit 1,000).

This method is similar to a “prepaid” limit but differs from a debit card, as you can still utilize the credit features of a credit card (such as installment payments or points). In practice, it resembles determining limits based on financial proof rather than income/profession criteria. However, the transaction record will appear as a credit card.

There are also claims that Bitget has acquired a bank, allowing for direct card issuance? Recently, there were two news reports about U card issuers securing funding for comparison. One is Raincard, which recently received $24.5 million in funding led by NorWest, with participation from Coinbase. The other is the well-known Redotpay, which raised $40 million in Series A funding. Future blockchain news will provide a comparison of U cards.

Additionally, comparing Morph’s parent company, Bitget Card, which is similarly positioned as a credit card but is only available to VIPs with a certain asset scale. The Bitget Wallet Card is clearly defined as a debit card. I speculate that Morph Black is positioned above both the Bitget Card and the Bitget Wallet Card as a flagship card.

The various benefits released by Morph Black also evoke memories of the legendary card Crypto.com from the previous cycle. The minting price of Morph Black is set at 0.2E, equivalent to Crypto.com’s red card, but it includes more benefits such as Aspire VIP, among others, along with expectations of ecosystem airdrops. Currently, Morph Black has ended minting and can be purchased on OpenSea.

Comparison of U Card Data:

Transaction Fees:

Bybit: 1%
Bitget: 0.9%
Redot: 1%
Infini: 1%

Currency Exchange Fees:

Bybit: 0.9%
Bitget: Uncertain
Redot: 1.2%
Infini: 1~1.5%

Withdrawal Fees:

Bybit: 2%
Bitget: 2%
Redot: 2%

ATM Withdrawal Limits:

Bybit: $13,500 (per year)
Bitget: $10,000 (per month)
Redot: $200,000 (per month)

Currently, Morph has set its fees at 0.3%, with a withdrawal limit of $1 million. If this is realized, it may be the strongest U card available.

Can the Morph Ecosystem Succeed?

Morph is currently conducting point missions. Cross-chain to Morph, consuming gas on Morph, etc., can accumulate points. However, there was a period when the actual trading fees on Morph were several dozen U, but only standard L2 fees were displayed in the browser. Previously, KOL Icefrog also revealed that the official had secretly modified gas points.

On the other hand, out of the TVL of 77M, BulbaSwap accounts for 63M. Currently, looking at the Morph ecosystem, BulbaSwap seems dominant, with investors like Foresight Ventures, MEXC Ventures, Kronos Research, and Morph, making it quite clear. However, the total fee income from all DeFi protocols on the chain for 24 hours is only 1276U. It seems that on-chain trading is not as active as expected.

Optimistic Combined with ZK Consensus Mechanism?

In layman’s terms, generally, when using Optimistic, if there is a dispute during the challenge period, a zk proof is generated, but this is essentially Optimistic. Perhaps people are no longer concerned about what technology L2 is using, but looking at transaction finality time, Optimistic requires several days (until the challenge period ends), while zk proof takes a shorter time.

What is the Positioning of the $MORPH Token?

The most commonly criticized point about Layer 2 public chain tokens is their overly vague governance token usage scenarios, which lack actual demand. Currently, Morph’s mainnet is live, and like other Layer 2s, it uses ETH as gas fees. Since the token has not been launched yet, but the mainnet is operational, does this imply that the Morph token is positioned similarly to other Layer 2s, merely serving as a governance token?

On the other hand, Morph essentially embodies the Layer 2 aspirations of Bitget and MEXC, as evidenced by the launch of Morph on the BGB and MX exchange tokens (these two tokens are only available on Ethereum and Morph). Bitget strongly promotes the BGB token’s empowerment, while MEXC launched DEX+, both examples of CEX extending their influence onto the chain.
(Key highlights from the latest BGB token white paper: Combining PayFi, enhancing on-chain applications, and burning 40% of circulation for continuous deflation)

The question arises: A chain aims to increase empowerment for three main tokens (Morph, BGB, MX), so what is the positioning of the Morph token?

Risk Warning

Investing in cryptocurrencies carries a high level of risk, and their prices may fluctuate significantly; you may lose your entire principal. Please carefully assess the risks.