TechFlame News – 3F, a vault protocol built on the decentralized lending platform Morpho, has successfully raised a total of $4 million in funding. The round was led by Maven 11, with participation from F-Prime, GSR, Gate Ventures, and others. The company did not disclose the specific valuation.

According to reports, 3F is built on Morpho and aims to provide users with leveraged exposure to real-world assets (RWAs) through a "one-click operation." Users simply select their target asset and desired leverage level, and the protocol automatically executes the entire position-building process. This includes purchasing the underlying asset via short-term bridge financing, depositing it as collateral into Morpho, and borrowing stablecoins to repay the financing.

In essence, this mechanism simplifies the traditional "looping" process in DeFi, which involves repeatedly buying assets, depositing them as collateral, borrowing, and reinvesting. While this process can be efficiently executed in pure crypto environments using flash loans, it is typically more complex and inefficient in RWA scenarios due to settlement delays and other issues.

3F is expected to officially launch in the second quarter of this year.