Summary
Morpho Labs proposes its optimized distribution for the gauge vote of the 2nd Epoch of Age 3.
| Morpho-Aave | Morpho-Compound | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DAI | WETH | USDC | USDT | WBTC | stETH | CRV | DAI | COMP | WETH | UNI | USDC | USDT | WBTC | |
| Weight | 2.83% | 41.83% | 16.07% | 8.02% | 7.52% | 7.78% | 0.87% | 3.66% | 0.14% | 2.58% | 0.18% | 4.27% | 2.44% | 1.81% |
Context
The Age 3 rewards distribution is determined through the Morpho gauges. Before each epoch, $MORPHO holders can vote on the rewards distribution between markets of Morpho-Compound and Morpho-Aave. All the details about it are available in the associated forum post 5 and the related documentation section.
However, there are many unknowns, results are difficult to predict, and there is no guarantee of the efficiency of the rewards distribution. This is especially true for the first iterations of the gauges. That’s why Morpho Labs worked on an optimized distribution. Members of the core team will probably vote for this distribution, and anyone else without any particular opinion on the vote can follow this distribution.
Methodology
We applied the same methodology as the one from the previous epoch.
Results
We present here the results for the 2nd Epoch of Age 3. The data to do the computations has been taken at block 16465780 (Jan 22, 2022).
Growth potential
Use case
Aggregation
We compute the weights of the different markets by taking the average of the “growth potential index” and the “use case index”.
See the summary for the values in detail.
The weights indicate the proportion of rewards allocated to each market. These are then distributed between suppliers and borrowers in proportion to their contribution to the market. Thus, the greater the market volume, the more diluted the rewards are. The following graph shows the number of rewards allocated to a market divided by that market’s current volume (supply + borrow). This graph approximates the number of rewards one would receive for one dollar lent or borrowed in that market if its volume remains constant. As previously, we compare with the current state.
