Introduction
Block Analitica and B.Protocol, two leading DeFi risk teams, are partnering as risk curators, leveraging their experience and expertise in risk management to curate transparent and automated lending vaults for users. The first initiative is to co-launch Flagship ETH and USDC MetaMorpho vaults on top of Morpho Blue that will be rolled out consecutively.
The Flagship ETH and USDC MetaMorpho vaults will initially supply to stETH collateral markets and subsequently explore stablecoin and other LST collateral markets.
This proposal seeks Morpho DAO’s approval to whitelist the vaults’ smart contracts and make them eligible to transfer potential $MORPHO rewards to depositors once live.
Block Analitica and B.Protocol Partnership
Block Analitica is a dedicated risk management firm providing extensive, data-driven risk assessments, monitoring, and mitigation services tailored to the challenges of the DeFi ecosystem. For over 4 years, Block Analitica has had experience working with MakerDAO to assist in the management of a risk-mitigated portfolio of collateral backing Dai. We have also provided risk mitigation services and risk dashboards to other protocols in the DeFi Ecosystem, including (i) Aave, (ii) Compound, (iii) Spark, and (iv) Ajna. Block Analitica provides a critical and clear understanding of the fast moving market dynamics in the DeFi ecosystem. We believe that this approach is crucial to making the right, informed decisions when engaging with these new financial markets and economies. Our research, papers, models, and methodologies are securing over $9B in TVL and have been extensively tested throughout some of the worst crises and market events in crypto financial market history.
B.Protocol has been building open-source protocols and infrastructure for risk mitigation and assessment for the DeFi ecosystem since 2020. Through our research arm, RiskDAO, and its novel risk framework, we have supported over a dozen DeFi protocols with risk analysis, research, audits, and monitoring. Our Risk Oracle and SmartLTV formula automate the process of setting risk parameters for lending platforms in a transparent way, building the next generation of DeFi risk management infrastructure.
The unique architecture of Morpho Blue enables our two teams to join forces as risk curators on MetaMorpho. The main objective of the partnership between Block Analitica and B.Protocol is to combine our expertise, experience, and risk tooling infrastructure to introduce a new level of transparency and automation in DeFi risk management for Morpho end users.
The Flagship ETH and USDC MetaMorpho Vaults
The launch of the Flagship ETH and USDC MetaMorpho vaults marks a significant milestone as we will introduce two distinct options that will be rolled out consecutively. The first will be focused on generating yield on ETH and the latter on USDC.
Why ETH and USDC?
The choice to prioritize ETH and USDC for our initial vaults is grounded in their established and widely embraced use cases within decentralized lending today. These two assets represent around 90% of the borrowing activity across the two largest Morpho optimizers and over 60% of the borrowing activity on Aave and Compound V3.
Which markets will we target?
Our flagship ETH and USDC vaults will concentrate on supplying to blue-chip LST and stablecoin collateral markets. The vaults will initially supply to stETH collateral markets and subsequently explore stablecoin and other LST collateral markets.
Who is it for?
These vaults will be tailored for lenders seeking a set-and-forget solution with primary exposure to blue-chip LST and stablecoin collateral markets.
Vault Objective
The goal of the flagship ETH and USDC vaults is to optimize interest earned from blue-chip LST and stablecoin collateral markets. This will be done by dynamically allocating funds between the different Morpho Blue markets based on the best risk-return ratios at any given time.
Roadmap
The Flagship ETH MetaMorpho vault will be available from day one, followed by the launch of the USDC MetaMorpho vault. This methodical sequence ensures our unwavering focus, a smooth and gradual growth process, offering users a seamless experience with MetaMorpho.
We believe that a transparent and automated risk curation role should be prioritized. Our objective is to avoid manual “black-box” decision-making processes and instead focus on sharing our methodologies and risk models transparently. We will be releasing more updates on the ETH and USDC vaults, their strategies, and target markets as we get closer to launch in the coming weeks.
MetaMorpho and its underlying Morpho Blue infrastructure have the potential to improve decentralized lending by offering access to a diverse set of risk profiles and better service, both for new and existing users. We look forward to actively working and collaborating with stakeholders in the Morpho Ecosystem and remain dedicated to shaping its continued success.
Whitelisting the Vault Contracts
MetaMorpho vaults curated by us may receive $MORPHO rewards from supplying to incentivized markets on Morpho Blue. To allow the vaults to transfer these potential $MORPHO rewards to depositors, we propose whitelisting our vault addresses. The vault addresses will be provided once launched.
If you are interested in learning more, and taking part in our MetaMorpho services, please consider showing your support and sharing your feedback. In the meantime, refer to the links below to learn more about Block Analitica and B.Protocol.