Call for Grants

Governance
22

Project Title: Morpho x Ojo Smart Oracles

Organization name: Ojo Network

Organization website and/or social media links:
Website/Docs
GitHub

About us + prior experience:

The Ojo Network is a cross-chain oracle network pioneering Smart Oracles—next-gen oracles for safer lending. Ojo oracles protect ~$6M of Morpho’s Supply + Collateral via markets deployed by MEV Capital, with more markets using Ojo on the way. Ojo is live on 10+ chains and is expanding throughout the EVM via Axelar GMP.

Leading Contributor(s):

  • Adam Wozniak
    • Experience in FinTech with $500M+ ARR enterprises.
    • Designed Smart Oracles, contributed to multiple open-source blockchains.
    • GitHub: adamewozniak
  • Ryan Bajollari
    • Built low-level Bitcoin mining pool systems.
    • Implemented Ojo’s block-enshrined oracle network.
    • Implemented multiple oracles currently used on Morpho.
    • GitHub: rbajollari

Requested budget: 5k MORPHO

(Much of the development cost is for customizing the feed logic, auditing, and deployment, rather than building from scratch.)

Scope of Work:

Implement Ojo’s Smart Oracle for a Pendle/Spectra PT market on Morpho.

  • Smart Oracle will combine:
    • Primary Feed: Pendle/Spectra Token’s market price.
    • Secondary Feed: Discount rate.
    • Decision Maker: Outputs the safer/lower of the two.

Work with Morpho’s risk curators to integrate and test the final oracle, then deploy the Morpho market.

Context:

A Smart Oracle is a new oracle primitive which uses a primary feed, a secondary feed, and a decision maker to construct a safer oracle. These oracles are designed for derivative assets like Pendle/Spectra tokens, with the goal of offering an additional layer of protection against market manipulation attacks, which most oracles are largely susceptible to.

Currently, if an asset is deemed too “risky”, curators may hard-code the price of that token. Hard-coding oracles can introduce risk for vaults and users alike. While this is currently the “safest” way to list these tokens, Ojo’s Smart Oracles introduce a way to safely price these token types, without having to hard-code prices.

We would like to develop a particular Smart Oracle which will take a Pendle/Spectra Token’s market price as the primary feed, the discount rate as the secondary feed, and output the lower of the two. We would then like to collaborate with risk curators on Morpho to launch markets with a Smart Oracle.

Benefit for the Morpho Ecosystem:

  • Safer & More Flexible Lending: Smart Oracles may enable Morpho to list new, previously “too risky” assets with robust price protection.
  • Expanded Markets & Higher TVL: More markets may attract more liquidity, further driving Morpho’s volume and fees.
  • Reduced Liquidation Risk: Enhanced price reliability may foster user confidence, potentially increasing usage and liquidity.

Smart Oracles can apply to Pendle/Spectra Tokens, RWAs, LSTs/RWAs, and many other derivative token types. We hope that this first version will showcase an additional layer of safety and give Morpho an advantage over other protocols.

Metrics:

  • Develop & Deploy one Smart Oracle for a Pendle/Spectra PT token.
  • Launch one Morpho Market using the new Smart Oracle.
  • (Optional) Track initial TVL or usage as a success measure.

Timeline:

  • Weeks 1-2:
    • Development & testing of the Pendle/Spectra PT Smart Oracle.
    • Internal code review.
  • Week 3:
    • External audit of the Smart Oracle logic.
    • Any necessary refinements.
  • Week 4:
    • Deploy the Smart Oracle on mainnet.
    • Coordinate with a Morpho risk curator for final sign-off.
  • Week 5:
    • Launch the new Pendle/Spectra PT market on Morpho.
    • Begin data gathering on performance (TVL, liquidity, etc.).

Future directions (optional):

This Pendle/Spectra PT Smart Oracle is simply the first of a large array of Smart Oracles we would like to develop. We believe Smart Oracles can create a safer lending environment for not just Morpho, but for all of DeFi. We’d like to:

  • Develop Additional Smart Oracles for other Pendle/Spectra markets, RWAs, LSTs, or any derivative tokens.
  • Collaborate with risk curators to migrate or expand existing oracles to Smart Oracles.
  • Work on ongoing improvements to reduce risk and enhance capital efficiency across DeFi.
1 Like
23

Project Title: Open-Source MVP Frontend for Morpho

Organization Name: Re7 Labs

Organization Website and/or Social Media Links:

About Us + Prior Experience:

Re7 has been providing liquidity in DeFi since 2019 having deployed over $300m of assets. We bring practical experience to risk management from years of managing stablecoin and ETH yield strategies as well as further strategies like our Liquid Token fund. As DeFi-native managers, we have focused on enabling yield strategies, providing early liquidity to various DeFi protocols, and have worked with teams throughout the space on a close basis to grow DeFi liquidity while managing risk.

From our experience deploying capital we bring a unique perspective to risk management as practitioners and power users of DeFi. We have built extensive tooling to provide a deep view into risks in the market including liquidity monitoring, price alerts and a large suite of custom analytics and execution tools. This has allowed us to stay on top of the ever-changing DeFi market. This grant extends some of our existing Morpho infrastructure to provide a public good for the community.

Re7 and Morpho

Re7 has been supporting Morpho since the start and we remain committed to its growth. Re7 Labs has launched and curated around 20 vaults representing over $50m in supply assets. Each vault offers suppliers access to lending markets with diverse risk profiles. Our curation approach centers on ensuring these vaults meet stringent risk guidelines, attract the DeFi community, and remain robust against the inherent volatility of crypto markets. We are also active delegates and participate within the larger Morpho community in various ways.

Examples of vaults we currently curate on Morpho include: Re7 WETH (Ethereum), Re7 USDT (Ethereum), Re7 WETH (Base), Morpho eUSD (Base), Pyth ETH (Base), etc.

Requested Budget: 40k MORPHO

Scope of Work:

We propose to build and open-source a Morpho frontend that can be deployed by curators or ecosystem participants, targeting new blockchain ecosystems. The goal is expanding Morpho’s presence and simplifying user access in these networks, while giving curators, users and other community members a starting building block for accessing Morpho.

The key elements include:

  • Earn page listing vaults
  • Borrow page listing markets
  • Individual market page
  • Individual vault page

The site will serve as an open-source starting place for integrators, new chains and others who want to be able to offer Morpho vault services outside of the official UI or the more sophisticated cross-chain UIs offered by GFX and others. The open-source UI framework would serve as a building block for white label vaults, curator specific UIs and other ways of expanding Morpho’s distribution.

Benefit for the Morpho Ecosystem:

  • Enhanced Accessibility: An open-source frontend can attract users in new ecosystems and make it easy for anyone to deploy the necessary dAPP infrastructure on top of the protocol.
  • Wider Adoption: By integrating Morpho into new ecosystems, we tap into each chain’s user base, increasing protocol utilization and TVL.
  • Community Building: Open sourcing fosters collaboration, letting devs easily create custom UIs or integrate advanced features.

Metrics:

  • Deployment Targets: Successfully launch on at least two new chains within 6 months.
  • TVL Increase: Aim for a combined $500M in additional TVL across all newly supported ecosystems.

Timeline:

  • 2-3 months for development, testing and integration into the first ecosystems
24

Project Title: On-chain, auto-magical risk-management for borrowers

Organization name: FlexiFi.xyz

Organization website and/or social media links:

About us + prior experience:

We are a team of engineers with 15 years of combined experience in software product development. We help companies build tailor-made software end-to-end, and occasionally enjoy building software ventures of our own. We are building FlexiFi that we fully own.

We are early enthusiasts of the Morpho protocol. We truly believe in the protocol-as-primitive concept pioneered by Morpho, and we have successfully built a Morpho liquidation protection prototype that works a 100% on-chain through the use of Mangrove. We are now expanding this prototype into a comprehensive risk-managed borrowing service.

Leading Contributor:

@Allezxandre - Engineer, Masters in CS. 4 years of experience building Web2 solutions for companies, 2 years building Web3 solutions.

Requested budget: 10k MORPHO

Scope of Work

We are building a 100% on-chain risk-managed borrowing platform.

Comparison Slide@2x
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Relying on protocols like Morpho and Mangrove, it provides a unified interface for users to easily manage risk on their borrowing positions through the use of automated mitigation strategies, like:

  • pushing collateral using wallet funds
  • repaying debt using wallet funds
  • selling collateral to repay debt (partial liquidation)
  • re-balancing positions on DeFi protocols to balance risk

Additionally, FlexiFi aims to introduce tools that will enhance borrower’s user experience, like notifications for important events and repayment planning.

FlexiFi-Tech-stack
FlexiFi-Tech-stack1810×1000 156 KB

Use of funds & deliverables

A major part of the grant funding will help fund development of the platform and its Morpho integration:

  • A Morpho borrower protection smart contract, capable of executing the following mitigation strategies:
    • Automated collateral funding from user’s wallet
    • Automated debt repayment through wallet funding
    • Automated debt repayment via partial liquidation of collateral
  • A user-friendly web interface for borrowing that handles setting up the risk-management.

The rest of the grant funding will support the development of a test environment allowing users to simulate and validate FlexiFi’s risk management features before deploying their own assets.

Benefits for the Morpho Ecosystem

FlexiFi will directly benefit three categories of users:

  1. Existing Morpho borrowers: Many rely on a set of manual systems and tasks to manage their risk. FlexiFi enhances their experience by automating and streamlining risk management processes.
  2. Potential retail borrowers: The mental load of managing collateralized borrowing deters many from participating. FlexiFi aims to make DeFi borrowing more accessible by offering a user experience comparable to traditional finance.
  3. DeFi card users: FlexiFi’s approach is particularly valuable for users of DeFi-compatible debit cards, such as Deblock, Gnosis Pay, or Holyheld. By pairing with Morpho, FlexiFi can effectively transform these debit cards into credit cards, opening up new possibilities like buy-now-pay-later schemes in the DeFi space.

For the Morpho ecosystem, this would translate into:

  1. Better retention of risk-savvy borrowers: FlexiFi takes care of making risk-management effortless, automating away most advanced features to provide a one-click borrow experience to newcomers, bringing high-quality, “good actors” borrowers.
  2. Reduced liquidation risk: FlexiFi users are protected from sudden liquidations through proactive risk management. This results in smoother, more gradual liquidations over time, preventing cascading effects and making Morpho safer and more cost-effective for borrowers.
  3. Enhanced lender security: More liquidity with less liquidations means decreased bad debt and more stable rates, FlexiFi indirectly benefits the lending side of Morpho.
  4. Retail credit innovation: By leveraging recent focus on everyday retail users from Web3 products (with features like smart wallets, sponsored transactions and bank-compatibility-layer services like Debit cards and stablecoin off-ramps), FlexiFi positions Morpho to pioneer retail credit solutions in DeFi. This could lead to the development of true DeFi credit cards and competitive financing options that traditional banks may struggle to match.

Timeline

All the deliverables described above are planned to be completed by the end of March 2025.

Metrics

Our goal is to prevent liquidations within the Morpho ecosystem.

Currently, liquidations on mainnet have amounted to about $70 million. We will measure our success by the effectiveness of FlexiFi in reducing this metric.

Through our web platform’s test environment, we aim to attract users to protect their assets using FlexiFi. Our target is to have FlexiFi manage a total of $500,000 in collateral. This benchmark corresponds to an estimate where the amount of prevented liquidations exceed the value of the grant funding.

Achieving this TVL goal will allow us to validate our risk management strategies and smart contract functionality while minimizing potential exposure before proper code audits are completed.

Future directions

With the first version built, we will focus on gaining user trust by performing smart-contract code audits.

Our mid-term goal is to bring retail-credit to blockchain’s open finance: allowing users to buy something with their card, with FlexiFi handling the payment by contracting a risk-managed loan on behalf of the user (as illustrated below). Building this vision will take some time.

FlexiFi Payments@2x
FlexiFi Payments@2x2400×1350 210 KB

26

Project Title: Morpho Tidbits Hub

Organization name: DoDAO

Organization website and/or social media links: - dodao.io

About us + prior experience:
DoDAO has been working on many tooling and educational initiatives in the blockchain space. We have been working with some of the top projects in the space and have been contributing to the ecosystem in various ways. We have been working on

Educational Initiatives

  • WebSite - uniswap.university
  • WebSite - arbitrum.education
  • WebSite - compound.education
  • WebSite - optimism.university
  • Many more

DoDAO’s Products

  • Academy Site Builder
  • Tidbits Hub(Tidbits & Clickable-Demos/Simulations) - LATEST

Leading Contributor(s): We take a team based approach and for this initiative we will be working with a team of 1 full-time researcher and 1 full-time developer for a period of 8-12 weeks.

Requested budget: 22k MORPHO

Scope of Work:
We propose creating a Tidbits Hub for Morpho, designed to help Morpho users learn the most important information and concepts within 15–30 minutes.

Morpho’s Tidbits Hub will resemble (but feature its own theme and colors):

We plan to create a series of simulations (clickable demos, e.g.) and tidbits focusing on Morpho’s most important use cases. The following areas will be covered:

  1. Morpho Introduction
    Basics of DeFi lending and borrowing, what Morpho is, how it differs from other lending platforms, liquidations, etc.

  2. Core Concepts
    Topics such as Markets, Vaults, Risk Management in Morpho, Curators, and more.

  3. Morpho Vaults and Markets
    Detailed explanations of how Vaults work and related concepts.

  4. Using Morpho
    Guidance on creating your own market, becoming a curator, and other practical uses.

This is a preliminary list of topics. The exact list of topics will be finalized as we develop Morpho’s Tidbits Hub and gain deeper insights into its internals and working.

Benefit for the Morpho Ecosystem:
Morpho offers great flexibility due to its design, but this also makes it slightly more complex to understand compared to simpler lending and borrowing protocols.

Currently, Morpho expects its users to grasp the details by going through the documentation, which often requires spending more than a day—or even several days—reading the content. This expectation is not realistic for most users.

Consider the difference in time it takes to learn about Safe or Alchemix from their documentation versus the Tidbits Hub we created(in-progress) for them.

Metrics:

  1. Clickable demos for all the most important(8-12) use cases, with a quality of at least 8/10.
  2. Tidbits - At least 25-30, with a quality of at least 8/10.

Timeline:
We estimate this initiative will take 8-12 weeks to complete.

  • First 4 weeks: Research and study
  • Next 2 weeks: Creation of clickable demos(50%)
  • Next 2 weeks: Creation of tidbits(remaining 50%)
  • Next 2-4 Weeks of reviews and updates
27

Hi everybody! Great to see the call for comments! Unfortunately, I can only share 2 links with my account, so I’ve added [Link] placeholders. You can find all the links in this document: GoogleDoc.

Project Title: Twyne

Organization name: Twyne Labs

Organization website and/or social media links:
Our marketing campaign will ramp up in the first week of 2025. While these links are currently under construction, here’s where you can find us:

  • Landing Page: [Link]
  • Testnet PoC: [Link]
  • Docs: [Link]
  • Twitter: [Link]

About Us + Prior Experience:
The Twyne team brings over 25 years of crypto experience with deep expertise in academia, security, and startups. We operate 0xsidequest [Link], providing risk assessments for DeFi projects like Liquity, and have extensive experience modeling risks for DeFi lending, CDP stablecoins, and DEX liquidity. After years of working with DeFi lending markets, we’ve begun building our own project. Recognized as the Best DeFi Project from Arbitrum at ETHDenver, we also released a Testnet PoC to secure pre-seed funding. Currently, we are in the final steps of a private beta release on Euler and are excited to integrate with the Morpho ecosystem!

Leading Contributor(s):

  • Daniele: Physics PhD with expertise in quantitative risk and mechanism design, leads tech due diligence at Gnosis VC. [Link]
  • Engn33r: Former yAcademy auditor and core member, former top 10 on code4rena and Sherlock auditing contest platforms, prior expertise in web2 security penetration testing [Link]
  • Bunbun: Ex-Ethereum Foundation engineer, smart contract auditor, and zk-researcher. [Link]
  • Jakub: Data scientist who leads all aspects of data, from engineering to analysis, brings experience from Giza and 0xsidequest. [Link]
  • Taulant: Startup strategist, helped to scale a web2 business to $10M ARR and served as a research analyst at 0xsidequest. [Link]

The team has an academic foundation from prestigious institutions such as NYU, Oxford, Columbia, and Minerva University.

Requested budget:
50k MORPHO, allocated towards audits, smart contract and frontend development.

Scope of Work:
With Twyne we are introducing a credit-delegation protocol that increases capital efficiency by bundling users together. There are users that have idle borrowing power, while simultaneously others need more borrowing power. The protocol enables:

  • Lenders: To delegate idle borrowing power to other users.
  • Borrowers: To access higher borrowing power.

# How It Works:
Essentially, Twyne’s Over-collateralization vaults act as a top-up of collateral, enabling higher leverage for borrowers.

  1. Alice deposits $100 of BTC collateral into an 80% LLTV vault. (Liquidation LTV)
  2. Bob delegates $8 of credit to Alice. ($10 BTC collateral * 80% LLTV)
  3. Alice now enjoys an effective LLTV of 88%.
  4. Alice pays a credit-delegation fee to Bob.

This process reallocates borrowing power to where it’s most needed, giving borrowers increased flexibility while providing new yield opportunities for lenders. Twyne ensures that Alice cannot withdraw or misuse Bob’s collateral. Liquidations on Twyne are managed to sell off Alice’s collateral first, protecting Bob’s delegated collateral. However, as the underwriter of the riskier position, Bob bears the loss in the event of a shortfall. To mitigate risk, Twyne adds liquidator options: liquidators can either clear the debt or add collateral to inherit the debt position. This setup enables anyone with excess borrowing power to become a liquidator without the need for a technical setup.

Benefit for the Morpho Ecosystem:

  • Yield: Morpho Users can restake idle collateral to earn higher yields
  • Utility: Borrowers can pay for additional leverage
  • Utilization: Borrowing power is distributed more efficiently, boosting borrowing volumes
  • Access: Democratizing liquidations for any Lender

Twyne keeps all collateral within Morpho vaults, and simply redistributes credit to where it’s most needed. This aggregated credit enables new abstractions, enhancing the utility of Morpho’s ecosystem.

When we win, Morpho wins.

Metrics:

  • M1: Testnet deployment
  • M2: Completed audits
  • M3: Reach $5M TVL deposited in the underlying Morpho Vaults within 6 months of launch

Timeline:

  • 3 months: Develop smart contracts for Morpho integration and write tests.
  • 1 month: Test and audit the protocol, integrate with the frontend, and ramp up marketing.

Future directions (optional):
We aim to become a lending aggregator, akin to how AMM aggregators like 1inch leverage underlying protocols. Aggregators often face a race to the bottom on fees, making value creation the only sustainable approach. By bundling users and utilizing credit delegation, we reactivate idle capital and distribute value across the network. This approach not only delivers better rates and terms than the underlying platforms but also ensures our model remains competitive and sustainable. Our roadmap includes expanding with additional use cases:

  1. List New Tokens by Underwriting Them: Twyne enables new collateral types to be underwritten using existing collateral, where only opt-in users of the vault assume risk. High-LLTV or low-interest vaults can extend their terms to other tokens, to route borrowing volume through existing vaults. Our Testnet PoC, linked above, showcases this mechanic by enabling SHIBA to borrow on AaveV3 using aUSDC as the real collateral. This approach effectively enables SHIBA to leverage Morpho’s infrastructure under USDC’s terms.

  2. Cross-Market Operations: Deposit on Euler and borrow from Morpho using a unified interface that deposits into the highest-yielding protocol while borrowing from the cheapest. These operations are backed by unused borrowing power of users in each lending market.

  3. First-Loss Capital: Lenders can opt in to cover shortfalls in underlying vaults, earning higher rewards as compensation, similar to Aave’s Umbrella Safety Module. Twyne’s Over-collateralization vaults also serve as a first-loss use case compared to standard Morpho users. While integrations may introduce smart contract risk, they help mitigate market and mechanism risks.

28

Project Title: MORPHO Zero Liquidation Loan (0LL)
Organization name: Polarity Labs

Organization website and/or social media links:

About us + prior experience: Polarity Labs is a company created in 2023 building Polarity.finance an omnichain options AMM enabling traders to use unrealized gains in Decentralized Finance applications. Our team is accelerated by 50Partners and consists of DeFi users and builders active in the ecosystem since 2020.

Leading Contributor(s):

  • Kvmi - Founder & Head of Product
  • Hyke - Co-founder & Product/Operations
  • Théo - Lead Solidity
  • Querty - Senior Solidity
  • Arthur - Fullstack Engineer
  • Kibo - Art Director

Requested budget: 35k MORPHO

Scope of Work: Borrowers can access loans on Morpho with built-in liquidation protection. The system utilizes an Automated Market Maker (AMM) to sell protection in the form of a PUT option near the liquidation threshold.

  • Implement a custom AMM specifically designed for option-like protection contracts
  • Develop smart contracts for protection issuance, exercise, and settlement
  • Utilize reliable price feeds to accurately determine when protection should be triggered
  • Implement efficient contract designs to minimize gas costs for users

Benefit for the Morpho Ecosystem:
0LL system enhances the user experience within the Morpho ecosystem by offering seamless one-click protection, allowing users to borrow and purchase risk management in a single transaction. These features not only attract sophisticated DeFi users but also increase TVL and user retention, positioning Morpho as a leader in innovative and user-centric DeFi solutions.

  • Increased Borrowing Activity: The added security may encourage more users to borrow on Morpho
  • Capital Efficiency: Borrowers can safely maintain higher loan-to-value ratios, improving capital utilization
  • Ecosystem Growth: The protection system can attract new users to the Morpho protocol, fostering overall growth

Metrics:

  • Deployment on Ethereum & Base
  • $5M borrowed funds under protection
  • 2000 unique users

Timeline:

Month 1. Basic PoC
Month 2. MVP + UI/UX
Month 3 & 4. Finalizing contracts and testing
Month 5. tests + security audit

Future directions (optional):

  • Price optimizations
  • Gas optimizations
  • Deployment on chains Morpho is deployed/licensed
1 Like
29

Project Title: Morpho Telegram Bot

Organization name: Members from Blockchain at Berkeley

Organization website and/or social media links: See contributors section

About us + prior experience: Our team members are all students at UC Berkeley, with extensive experience in the web3 ecosystem. Our team has built and led grant projects in the past inside and outside of Blockchain at Berkeley. More details in the contributors section.

Leading Contributor(s):

Derrick Cui (Computer Science + Business BS ‘25 @ University of California, Berkeley):

Matthew Fogel (Electrical Engineering and Computer Science MS ‘25, BS ‘24 @ University of California, Berkeley):

Sena Hazir (Computer Science BS ‘25 @ University of California, Berkeley):

Requested budget: 9k MORPHO

Scope of Work: Telegram Notifications and Tooling

Create a Telegram bot that allows users to opt into notifications regarding the Morpho ecosystem. Specific features include:

  • Simple bot onboarding, with optional account connection
  • Simple selection of features to opt-into
  • Simple command to check prices for for existing vaults/borrow positions

Opt-into the following features:

  • Notifications for changes in existing vaults/borrow positions, like TVL, APY, rewards, liquidation warning, statistics on growth or changes
  • Governance notifications, like new forum posts, community calls, snapshot proposals, and on-chain votes
  • Vault notifications like new vaults, changes in vault compositions, changes in rewards, changes in liquidity, and changes in collateral.
  • Portfolio tracking of specific accounts from user input, with notifications on account transactions, as well as APY performance and transaction summaries.
  • Yield optimization suggestions based on changing opportunities for yields in different vaults with similar risk/collateral exposure
  • Guides/tutorials to use Morpho and this Bot
  • Suggestion box

This is a public good, non profit project intended to build the infrastructure for Morpho to more closely interact and integrate with Telegram and its 950 million monthly users. Thus, a large benefit stems from the process of creating developer tools to build bots on Telegram. Our goal is to create a highly replicable bot that allows others to easily clone and build on top of.

Benefit for the Morpho Ecosystem:

Telegram is the top tool to communicate and increasingly interact with blockchain. Some tools that have targeted this opportunity have proven very successful, for example Tribuni. By integrating this tool, it would significantly ease the accessibility of Morpho alerts, no longer limited by generic apps and mobile non-accessibility. This public good would also provide a free and cloneable Telegram bot that can be used to build on top of for the community.

Metrics: Stable production, high user retention, high conversion rate, high feature opt-in rate, high message interaction rate (use of opt-in commands). As a messaging bot, success statistics are difficult to measure before the product launches; we will share all the statistics we capture after launch with the DAO for it to determine specific success metrics.

Timeline: Two months for development, two months of active developer support.

Future directions (optional): If this bot sees use, we would love to further expand this bot in future grants iterations to encompass more Morpho user demands, like integrating risk modelling, AI summary tools, and the ability to directly execute transactions on Morpho via the bot. Long-term deployment may include costs associated with recurring hosting/API costs, though it can always be deployed by individuals themselves or handed off to be hosted by the Morpho team/other teams.

2 Likes
30

Benefit for the Morpho Ecosystem:

  • Liquidation protection? Already built. Bonds? Made simple
  • We Offer huge incentives for depositing USDC on Morpho,
    demonstrating a unique bailout mechanism enabled by ^

Project title: Quid Labs acqui-hire proposal
Organization name: QuidMint Foundation
quid.io requesting budget: 16k MORPHO

Scope of Work: the idea was inspired by
Vitalik: 85% green Tbill…15% Uni APY…
This is the blue-chip memecoin (if there
ever was one) to bring people together
around strong utility and fundamentals.
After there is a Morpho deployment on
ARB, we’ll also deploy a market there…

It’s helpful to have multiple markets,
and improve the Solidity to tap from
them all (if necessary). The frontend
should be extended…e.g. to be able to
switch chains, support all 5 stables
(the accounts payable), and claim
MORPHO rewards on behalf of
the protocol. Enjoy the code!
(refer to the “rfc” commit)

Metrics:
the liquidity incentivisation model
has a “guarded launch” character
with a cap of up to $23m in deposits
and 33m QD (accounts receivable)
per month (roughly). Visualised here

This may be the first large-scale
Morpho-enabled lottery with
working tokenomics, so we
look forward to making
dreams come true!
(99.5% fair launch)

Timeline:

Base is our auditing, or “staging” area to
validate the price discovery (mint logic)…
by February 25th we’ll respond to changes
proposed by the Morpho community, and
others who may benefit from our efforts.

Our response will be in the form of an L1
deployment on Ethereum. This may or
may not use LayerZero, depending on
how the community responds to our
proposal for cross-chain homogeneity.

About us + prior experience:

in 2018 we were the first team to fundamentally
re-think CDPs, treating the CR like a strike price
on an option. This is explored in the legacy repo
of our GH org. The liquidation algorithm was
advanced on by Liquity, where we contributed
after Bancor, and FRAX (formerly, Decentral).

31

Project Title: NIZO DeFi AI assistant

Organization Name: NIZO Labs

Organization Website and Social Media Links:

  • Twitter: @NIZOAI

About Us & Prior Experience:
NIZO Labs is a team of blockchain developers and AI researchers. We focus on making decentralized finance (DeFi) easier to use through automation. Our team has experience in both traditional finance and blockchain development, with members who have worked on project in ethereum, solana and starknet ecosystem.

Leading Contributors:

  • Lead Developer: Akinshola Akinniyi, fullstack and web3 dev with experience in writing smart contracts, I’ve contributed to several open source projects on starknet which is an l2, I’ve participated in several hackathons on ethereum and solana and have experience building with teams.

  • github - Akshola00 (Akinshola) · GitHub

  • Frontend Developer: Martins, frontend and web3 dev with experience in creating seamless UI and frontend development , worked in top notch organizations as a frontend developer and is an active member of the web3 community.

  • github - martinvibes

Requested Budget: 20k MORPHO

Scope of Work:
We will create an AI-powered transaction assistant for Morpho that can:

  1. Understand user requests in natural language
  2. Identify the best Morpho tool based on current rates and user needs.
  3. Generate and simulate transactions before execution.
  4. Explain recommended actions in simple language.
  5. Monitor positions and suggest rebalancing when better opportunities arise.

The assistant will connect directly to Morpho’s smart contracts and include:

  • A model to understand user intent.
  • Real-time market analysis for pool selection.
  • A risk assessment tool to prevent liquidation.
  • A user-friendly web interface with transaction previews.
  • A system for monitoring positions and sending alerts.

Benefits for the Morpho Ecosystem:
This tool will help new Morpho users by making complex DeFi concepts easier to understand. Users can express their goals, and the AI will handle the details. This will:

  1. Attract users who find traditional DeFi interfaces difficult to use.
  2. Reduce user errors in transactions.
  3. Increase usage of the protocol by suggesting optimizations.
  4. Differentiate Morpho in the lending market.

Metrics:

  1. Achieve 1,000 unique users in the first month after launch.
  2. Process $2 million in transaction volume through the platform.
  3. Maintain a 95% success rate in executing transactions.
  4. Get an average user satisfaction rating of 4.5 out of 5 from feedback surveys.

Timeline:
Month 1:

  • Develop essential AI models for understanding user intent and analyzing pools.
  • Design the basic user interface and experience.
  • Start integrating with smart contracts.

Month 2:

  • Implement transaction simulation and risk assessment.
  • Complete the frontend development.
  • Start testing the platform.

Month 3:

  • Conduct security audits and optimize the platform.
  • Launch a public beta version.
  • Collect feedback from the community and make improvements.
32

Thanks everyone for the grant submissions. I’ll be gradually posting some feedback on each submission in the order that they were received to assist delegates in the evaluation process. These posts will reflect my personal opinions only. Will be seeking comment from delegates on when they feel is the right time to move to voting to allow for adequate review, will be at least two weeks.

16 Likes
33

Thank you for your proposal. I am reviewing grant applications in the order that they have been received.

Notes on this proposal:

  1. Proposal amount and milestone are reasonable for the scope of work. Team has a strong record of dev work, including their educational background, competition in Ethereum ecosystem hackathons, and previous products.
  2. I question whether the team can provide adequate distribution to achieve the specified milestone; for example their existing product has a TVL of ~135k. Voters should be cognizant of the risk that while the product’s technical quality may be high, distribution may pose a challenge.
1 Like
34

Thank you for your proposal. I am reviewing grant applications in the order that they have been received.

Notes on this proposal:

  1. Proposal amount and milestone are reasonable for the scope of work. Team has a strong record of dev work, including experience at successful DeFi protocols, and is well positioned to take a new product to market.
  2. I look favorably on this proposal given that they have already completed substantial work, including a devnet demo with contracts and UI.
1 Like
35

Thank you for your proposal. I am reviewing grant applications in the order that they have been received.

Notes on this proposal:

  1. The Morpho App is already available in the Gnosis Safe UI. While the DeFi kit’s use of Zodiac roles may enhance the desirability of integration for larger users, voters should be aware of this when considering the proposal.
  2. The grant amount is modest compared to others in the round, and the milestones make sense.
36

Thank you for your proposal. I am reviewing grant applications in the order that they have been submitted.

Question about this proposal: would it use a new vault where the curator fee is split with The Big Whale, or create a new mechanism to allow fee splitting from existing vaults? I would look more favorably on it if the latter is true, since this would represent a useful tool that could be adopted by other projects and allow users to choose which markets to integrate with, instead of primarily benefiting a single curator in a closed manner.

37

Thank you for this proposal. I am providing feedback on grant applications in the order they were received to assist delegates in their review.

Notes on this proposal:

  • the budget requested is reasonable given the technical scope
  • It seems to me there is a substantial amount of duplication of the existing functionality of Morpho Vaults, such as the ability to set liquidity caps on which markets are used, and the ability for strategist/curator to take a performance fee on the vault. It’s not clear to me that this meaningfully improves on the existing curator model, given that there is already a wide selection of vaults with different risk perspectives available to users. Rebalancing can be costly, and makes the most sense in the context of vaults that serve a large number of users, rather than on a highly individualized basis.
38

Thank you for this proposal. I am providing feedback on grant applications in the order that they are received in order to assist delegates with the review process.

Notes on this proposal:

  1. The budget request is reasonable and the team has a strong track record of a high quality product offering.
  2. It is difficult for me to determine how much demand there is for risk dashboards of this nature and the impact they will have on user behavior. Comments are appreciated from delegates who are more knowledgeable on this topic.
39

Thank you for this proposal. I am providing feedback on grant applications in the order they were received to assist delegates in their review.

Notes on this proposal:

I’m particularly excited about this proposal given that the proposed product can be integrated into the Cowswap frontend. The budget request and milestones defined are reasonable, and the team has a strong track record of building similar applications in the Cowswap ecosystem.

2 Likes
40

Thank you for this proposal. I am providing feedback on grant applications in the order they were received to assist delegates in their review.

Notes on this proposal:

  1. Budget is reasonable, and I look favorably on the fact that the proposed funding is exclusively to fund auditing costs.
  2. Given that Kandel Aave has so far reached a TVL of <$200k, I question whether the proposed milestone of $5M TVL is realistic.
41

Thank you for this proposal. I am providing feedback on grant applications in the order they were received to assist delegates in their review.

Notes on this proposal:

  1. Borrow optimization, stop loss, and limit orders create useful functionality to enhance the experience of Morpho users.
  2. Requested budget is reasonable compared to the feature set described.
42

Thank you for this proposal. I am providing feedback on grant applications in the order they were received to assist delegates in their review.

Notes on this proposal:

LP tokens represent an interesting and under-represented class of collateral for lending markets. I look favorably on this proposal given StakeDAO’s substantial existing distribution ($100M TVL).