I'm surprised more people don’t take advantage of this.
You can get leveraged
$BTC exposure at near-zero cost in this way: buy cirBTC, deposit it on Morpho, borrow USDC, buy more cirBTC, repeat.
Meanwhile, on Hyperliquid, you'd have to pay 11-15% in funding rates annually to long BTC.
In comparison, on Morpho on Arc you would pay an annual borrow rate of just 0.03% on USDC to long BTC.
Yes, it is much easier, more capital efficient, and more convenient to long BTC via perps.
But if you're like me and have a significant BTC leveraged long position that you plan to keep open for at least a few months, I think it makes a lot of sense to move it from a perps DEX to a money market.
You will save a lot of money by doing this.
The 0.03% USDC borrow rate won't last forever, but I think the borrow rates for this cirBTC market on Arc will remain fairly low.
Morpho on Arc L1 has some great rates for borrowing.
You can borrow USDC against cirBTC, a wrapped BTC token issued by Circle, at a borrow rate of just 0.02%.
It is by far the best place to borrow against your BTC rn.