Morpho Governance

Redefine the optimistic rewards framework as follows: as before, all rewards changes will require 24 hours notice in the forum the Morpho Association can increase the global rewards rate per chain by at most +30% per week there is no restriction on the increase on per-asset rewards rates, as long as this does not increase the global rate per chain by more than 30% there is no restriction on reductions in the reward rate, either globally or per-asset. authorize the Morpho Association to add new rewarded assets at not more than the highest reward rate among existing assets

This MIP proposes a set of refinements to the Morpho Olympics reward mechanism for Vault curators. It builds on the existing structure laid out in MIP-60 and updated in MIP-89, focusing on improving the accuracy and incentive alignment of curator rewards by modifying the evaluation window and introducing utilization-based filters. See forum discussion for full details.

Remove rewards from the weETH<>USDT0/USDC and UNI<>USDT0/USDC markets on Unichain.

Lemon, a crypto fintech app in Latin America with over 4 million users, has integrated Morpho vaults for their Lemon Earn product. This is a proposal to award them an initial integration grant of $20k USD, and authorize additional milestone grants based on total deposits achieved totalling up to $55k USD.

Allocate 5M MORPHO for coincentives on the Katana network, which will deposit bridged assets into the Ethereum instance of the Morpho Protocol. The Katana Foundation will allocate at least 22% of the yield from the bridged assets as incentives for the Katana instance of the Morpho Protocol, as well as 2.2% of the Katana network token supply.

To support lending supply growth as the Coinbase borrow integration scales, authorize 25% of the standard MORPHO reward rate for Spark USDC deposits in the markets integrated by Coinbase on total deposits between $100M and $500M.

Authorize incentives distribution on Unichain, with an initial allocation of $175k MORPHO, $75k OP, and $250k USDC.

Set the rewards rate to 0 for markets with loan assets other than USDC, USDT, and WETH. This will free up $1.5M worth of MORPHO tokens annually for reallocation to USDC, USDT, and WETH markets. Increase r0 by 20% to offset the reduction in other markets. Set rewards multipliers to 1 for USDC and USDT (maintaining the current stablecoin multiplier) and 0.5 for WETH (maintaining the current ETH multiplier).

Allocate $500k MORPHO for coincentives on the Plume network, conditional on the following: Plume allocates $1.5M incentives to Morpho the Morpho Protocol deployment on Plume achieves a three month average of $150M active loans, and a threshold of $250M active loans Distribution will occur over an 8 month period beginning when the conditions above are satisfied.

In 2024, the Morpho DAO voted to establish a yearly process to approve contributor grants. Following this vote, the Morpho Association presents yearly allocations to the Morpho DAO for final approval and distribution to contributors. This vote is a ratification of the 2024 contributor grants, see forum thread for detail.

This is the proposal to disburse a second grant to Paperclip Labs totaling $100k for further work on the open source frontend for Morpho that is currently in use by Compound for their Morpho vaults on Polygon. The scope includes $80k for the development of migration tools for users to move positions from Aave to Morpho, as well as streamlined opening and closing of leveraged positions. It also includes $20k to offset the difference between the Phase 1 grant's requested budget and the value received, which was impacted by disbursement delays following the Bybit exploit. If approved, the value to be disbursed will be calculated using a 7 day TWAP concluding on the day the disbursement transaction is submitted onchain.

This is a vote to approve funding of an open source Telegram mini app to be developed by Fanzee Labs, with a cost to the Morpho DAO of $50,000 in MORPHO based on a 7 day TWAP.

In order to reduce operational overhead around adjusting the MORPHO token rewards rate on multiple networks, implement the following framework. On Ethereum, Base, and other networks where MORPHO rewards are allocated by the DAO in the future, allow the Morpho Association to optimistically implement rewards changes using the following rules: maximum of ±30% change in global rewards rates per week maximum of ±30% change in per asset rates per week (for example, stablecoins currently receive a higher MORPHO reward rate than other assets) all changes to be posted on the forum at least 24 hours in advance of implementation reward rate cannot increase higher than 50% of the current level for any asset without a vote Should this proposal pass, the DAO can revoke or modify the framework at any time with a new vote.

Paperclip Labs proposes to build and open-source a Compound frontend in collaboration with Gauntlet to support their Compound <> Morpho <> Polygon Collaboration proposal. This frontend will enable users to deposit, withdraw, and borrow assets, and claim Merkl rewards on the proposed Compound Morpho vaults and markets on Polygon. This frontend is set to launch on March 3, 2025.

Reduce MORPHO reward rates by 25% on Ethereum and Base.

Approve sending the Morpho code license fee from Berachain to the Morpho Association. Should the DAO approve this proposal, 100% of this grant will be allocated to efforts to support and enhance the Morpho Protocol, helping to reduce the amount of MORPHO spent on development work and operations such as frontend hosting.

Due to a technical error on the Morpho forum, one grant application was incorrectly excluded from the grants pilot program voting. This proposal was created to properly include this grant in the voting. Grants will be awarded in order of most votes received across all three proposals, with delegates able to vote for as many different proposals as they choose. See here for the other two relevant votes: https://snapshot.box/#/s:morpho.eth/proposal/0x41dd39f3d60ba0d892b92d2a113a1f774e38d0064d8c404b27a62b6bbe4c332f https://snapshot.box/#/s:morpho.eth/proposal/0x6f9fa796c450f57f7845983864ab36b72fdd41d8ae614481b6ba407c7cb6bde0

This is a proposal to decide which grants to fund under the Morpho grants pilot program. A total of 200k MORPHO is available. Voters can select one or more grants; applications will be funded in order of most->least votes, with ties broken in favor of the proposal with the smaller funding request. If a grant exceeds the remaining budget after grants with more votes are funded, it will be automatically skipped in favor of the next grant in the list. In the votes list, grants are labelled with the proposer and the request size for clarity. Note that since the total number of grants exceeds the limit for the number of choices in a Snapshot vote, this MIP will be split into two proposals. Delegates can select their preferred grants across both proposals.

This is a proposal to decide which grants to fund under the Morpho grants pilot program. A total of 200k MORPHO is available. Voters can select one or more grants; applications will be funded in order of most->least votes, with ties broken in favor of the proposal with the smaller funding request. If a grant exceeds the remaining budget after grants with more votes are funded, it will be automatically skipped in favor of the next grant in the list. In the votes list, grants are labelled with the proposer and the request size for clarity. Note that since the total number of grants exceeds the limit for the number of choices in a Snapshot vote, this MIP will be split into two proposals. Delegates can select their preferred grants across both proposals.

Implement an immediate 30% MORPHO reward rate reduction across Ethereum and Base. Additionally, set assets with denominations other than USD, ETH, or BTC to conform to the same r0 (and future multiplier modifications, whether specified in MIP 86 or in this proposal) as BTC assets. Two weeks after the February 14 conclusion of the current MIP-86 reduction in ETH and BTC asset rates, apply a further reduction by moving to multipliers of 1/2 and 1/10.

Replace Vincent Danos and Pierre Laurent as multisig signers with Guillaume Nervo and Pablo Veyrat, who have recently become advisors for the Morpho Association.

To support a scalable lending supply growth to support the new Coinbase integration, authorize 50% of the standard MORPHO reward rate for Spark USDC deposits in the markets integrated by Coinbase, up to a total deposit size of $100M.

Set the minimum eligibility threshold for the Morpho Olympics to be 1% of total deposits, and clarify that only deposits on Ethereum and Base are eligible.

MIP-86 proposed a multiplier system whereby certain assets earn a multiplier (can be a decimal, meaning less) of the base reward rate, and called for applying a multiplier of 2/3 to lending and borrowing of ETH-denominated assets, and a multiplier of 1/6 to lending and borrowing of BTC-denominated assets. Given that MIP-86 did not specify a timeline for implementation, and there has been feedback that implementing these multipliers in a single step is too aggressive, this is an amendment proposal to clarify the implementation timeline. A "yes" vote means that the multipliers specified in MIP 86 will be applied in three stages of two weeks each. The full multiplier of 2/3 for ETH and 1/6 for BTC would be reached in 6 weeks from the conclusion of the voting period. A "no" vote means that the multipliers will be put in place as soon as possible following the conclusion of the voting period, as implied by the original MIP-86.

Engage Oku/GFX Labs to create a frontend to support Morpho deployments on a large number of networks, as well as to seek out grants for ecosystem growth on these networks. Allocate $400k worth of MORPHO tokens, based on a 7 day TWAP beginning on Dec 16, 3:31 PM PST, to gfxlabs.eth, plus an additional $100k using the same TWAP price once the summed TVL of all Morpho deployments where GFX Labs is the first/primary user interface equals $100,000,000.