Angle <> Morpho Blue - Rewards on different USDA Markets

Summary

Angle intends to distribute incentives across several markets over three months, starting on April 17th 2024.
The markets are:

  • wstETH/USDA: 900k ANGLE
  • rsETH/USDA: 450k ANGLE
  • ezETH/USDA: 450k ANGLE

We propose that the Morpho DAO handle this distribution and request that MORPHO tokens be included as additional incentives.

Angle x Morpho Blue

Unlike traditional lending pools, Morpho Blue allows Angle to take a more targeted approach to incentivizing specific use cases. On Morpho Blue, we can incentivize a specific pair of assets with a strong use case that will help drive further adoption of our token. The different pairs with USDA here fall into this category.
The synergy goes even further here as a portion of the backing behind USDA (Angle USD stablecoin) is going to be deposited in the Steakhouse Metamorpho Vault.

The protocol will also be allocating some liquidity into these markets (and it’ll make sure to the extent possible re-roll the incentives we receive in these markets - even though we’d rather have the protocol positions blacklisted for rewards).
To some extent, Morpho will add here as the CDP system for Angle USDA. The advantage with respect to using an in-house solution here is that any lender can lend on top of what the protocol is also lending.
Liquidity allocation will be made through a Metamorpho vault managed by Gauntlet.
There may be other Metamorpho vaults building on top of these specific markets, meaning that in any case deposits in these markets will be easy to handle.

Proposal Details

We plan to distribute for a period of 3 months starting April 17th 2024 and to the following markets:

  • wstETH/USDA: 900k ANGLE
  • rsETH/USDA: 450k ANGLE
  • ezETH/USDA: 450k ANGLE

We propose that the Morpho DAO handle this distribution by integrating it into the Standard method for distributing incentives on Morpho Blue markets.

The growth of such a market will benefit Morpho, therefore it’s prudent for the Morpho DAO to distribute MORPHO tokens over the three-month period to help incentivize its expansion.

Should the proposal be accepted, we will send the aforementioned amount to morpho.eth.

2 Likes

Hi @sogipec, thanks for the proposal.
Great to see USDA coming on Morpho and your willingness to develop it!

We would propose to allocate the following amount of MORPHO over the three month period:

  • wstETH/USDA: 66,667 MORPHO
  • rsETH/USDA: 33,333 MORPHO
  • ezETH/USDA: 33,333 MORPHO

The ANGLE and MORPHO distributions would follow the Standard method for distributing rewards on Morpho Blue markets.

A vote will be scheduled in the next few days. Should the vote pass, its execution will be contingent upon receipt of the ANGLE on morpho.eth.

NB: distribution of rewards by the MORPHO DAO does not signify endorsement of market risks.

2 Likes

Thanks for the reply.
When it comes to the reward distribution, given that the Angle DAO will be depositing in these markets but is not interested in receiving rewards, it’d be great to blacklist the following Angle DAO addresses from receiving rewards:

  • 0xdC4e6DFe07EFCa50a197DF15D9200883eF4Eb1c8
  • 0x09D81464c7293C774203E46E3C921559c8E9D53f
  • 0x57eedCB68445355e9C11A90F39012e8d4AAA89Fc

We propose to start distributing rewards on markets with a metamorpho vault as collateral listed in either the RE7 USDA vault or the Gauntlet USDA vault. The rate on these markets would be 100 MORPHO per day.

NB: distribution of rewards by the MORPHO DAO does not signify endorsement of market risks.

1 Like

The vote is live here.