In the DeFi lending and borrowing sector during this bear cycle, the focus should be narrowed down to two names: Aave and Morpho.

With Aave, the advantage lies in its position as the "big brother" in the on-chain lending space. The circulating token supply is fully distributed, and unlock pressure is no longer significant. The demand for stablecoin borrowing is increasing, and the stablecoin market size is now much larger than in previous cycles, while the trend of RWA gradually shifting onto the blockchain also provides long-term momentum. Internal fluctuations between Labs and DAO may pose potential risks, but they currently do not affect the core platform: the protocol still generates revenue and has not lost market share. The sharp price decline in the bear market reflects more psychological factors than fundamental weakness.
Meanwhile, Morpho is a new lending protocol in this cycle, with on-chain data showing relatively stable growth. The downside is that some tokens are still locked, creating potential supply pressure. However, the participation of major institutions like BlackRock indicates a certain level of confidence from institutional capital in the project's model.
In summary, if safety and being a market leader are priorities, Aave is the more reasonable choice. If you are willing to accept higher risks for greater profit margins, Morpho may be worth considering. The most important thing remains risk management and choosing options that match each individual's investment appetite.