Block Analitica & B.Protocol: Flagship ETH and USDC MetaMorpho Vaults Whitelisting

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.

Block Analitica - Twitter, Medium, Website

B.Protocol - Twitter, Discord, Medium, Github

12 Likes

I cannot understate my excitement at this announcement. I have been following Morpho Labs and this disruptive approach to lending for some time. Yaron, Eitan, and the team at B.Protocol/RiskDAO have been at the cutting edge of risk management research for some time and I’m thrilled they will be on board for the initial launch. Block Analitica’s resume also speaks for itself and the two teams working together will create a best-in-class flagship vault to display the flexibility, scalability, and permissionlessness of MetaMorpho on top of Morpho Blue. These vaults will further illustrate the capabilities of Morpho’s primitive protocol to create a variety of vaults based on a user’s risk appetite and passive approaches.

I appreciate the emphasis on a transparent approach. Morpho Blue and MetaMorpho strive for transparency, and I would like to ensure there is a priority on providing insights and analysis as to the decisions that are made for these flagship vaults with regard to the interest models, oracle selection, LLTVs, etc that Morpho Blue allows the market creators to decide.

I would also fully support $MORPHO incentives transitioning after Rewards Age 8 from the Optimizer to MetaMorpho whitelisted vaults to incentive liquidity bootstrapping. There is no question the lending space is becoming saturated with competition and Morpho has an advantage with its track record through the success of Optimizer. We must now turn our attention to promoting MetaMorpho and Morpho Blue and ensure we take the right steps to establish the primitives of what intends to underpin the future of Decentralized Lending.

I would be more than happy to help however is needed and look forward to continuing to learn and serve as a part of the process of growing this foundational infrastructure.

4 Likes

Excited to see how this relationship progresses

3 Likes

Hello,
I join @farfel.eth and @JosepBove in saying what a pleasure it is to welcome high-quality teams to Morpho Blue’s permissionless environment.
It also seems logical, via the Morpho Vault contract whitelist, to allow rewards to be distributed in $MORPHO tokens by the MM vaults to encourage the supply of liquidity.
100% in favour.

2 Likes

Hey @kakagri

Thanks a lot for your proposal
I’m 0xloth, Growth Lead at Morpho Labs

I’m very excited by this BA/Bprotocol proposal for curating an ETH & USDC MetaMorpho vault lending against blue-chip collateral. It focuses on the most liquid/highest-demand markets on Ethereum Mainet which makes total sense. Also, it provides Morpho and more broadly lending platform users with a more curated, resilient, and robust alternative.

BA and BProtoocl credentials working with Maker’s DAO make them a prime curator for the Morpho Blue Ecosystem

Strongly in support of this proposal

2 Likes

Thank you @kakagri for submitting this proposal on behalf of Block Analitica and B.Protocol.

The Morpho Association will create the corresponding snapshot vote next week.

2 Likes