DeSPXA holders can now borrow USDC using tokenized S&P 500 exposure as collateral on Base via Morpho.

Centrifuge has integrated its deSPXA token, a licensed tokenized S&P 500 index fund, into Morpho's lending market on Base, allowing holders to borrow USDC at a 77% loan-to-value ratio without selling their equity exposure. This innovation lets DeFi users maintain long positions in the S&P 500 while unlocking liquidity and potentially leveraging returns through borrowing. However, borrowers face risks including liquidation if the token value drops, smart contract vulnerabilities, and price oracle risks. The product currently has a $3.2 million market cap, indicating it needs growth to support larger-scale borrowing.