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:
One of the most ambitious TVL milestones I have seen in the list of projects submitted. While I have some questions about whether their distribution plan is achievable using Tycho, given that the team has already demonstrated experience working on the Morpho stack by winning prizes at the Uniswap Atrium hackathons, I look favorably on the proposal.
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:
While I understand that the limited scope of this grants program may make it challenging to cover the longer term costs of operating a sophisticated dashboard, I do not believe a one-month operational commitment is sufficient to justify a grant award. A borrower-centric dashboard is an interesting product, but I would prefer to see it include a self-sustaining business plan that does not require ongoing support from the Morpho Association. For example, this might include future plans to add borrower automation tooling, or a āpremiumā tier with enhanced analytics that uses a subscription model in addition to a core dashboard funded by the grant.
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:
Principal tokens are a large market opportunity, and in light of recent market events it is clear that more sophisticated pricing mechanisms would benefit both vault curators and Morpho users. Given the existing usage of Ojo on Morpho and the size of the opportunity, I am highly supportive of this proposal.
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:
Delegates should keep in mind that the Morpho DAO has already allocated funding to GFX Labs/Oku Trade to build an interface to support new chain deployments. That said, this proposal is meaningfully differentiated by its open source nature and focus on simplicity for prospective integrators. These factors may facilitate use by other types of integrators, for example curators who want to run their own interfaces for their Morpho vaults.
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 proposal is interesting and the budget reasonable for the scope. My main question is around distribution ā given that there is not yet a live product from the team and the X profile has 14 followers, itās not clear to me that there is an adequate distribution plan in place.
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 team has a very strong track record of building similar products and the budget request is reasonable given the scope.
Delegates should note that the Morpho DAO has already allocated funding to GFX Labs/Oku for a multichain UI solution. The key distinction is that the proposed product is fully open source, making it easier for integrators to build their own brand on top of the Morpho stack with more opinionated features.
Itās not clear to me that subgraphs provide an adequate solution for indexing across the full set of permissionless markets.
Thank you for this proposal. Can you clarify what a quality of 8/10 refers to? It would also be helpful to provide some clarification about the level of usage observed on your previously created products, and how the impact of the product could be objectively measured.
Thank you for your proposal. I am reviewing grant applications in the order that they have been received.
Notes:
Very interesting proposal. Allowing users to ādelegateā borrowing capacity in exchange for a chance to earn fees opens up a new dimension of activity in lending markets. The budget request is reasonable given the scope of work, as is the defined milestone. I look favorably on this proposal.
Thank you for your proposal. I am reviewing grant applications in the order that they have been received.
Notes:
While the size of the grant requested is reasonable for the scope of work, I question whether these is an adequate plan for distribution, including market demand to provide liquidity for the liquidation protection contracts.
Thank you for your proposal. I am reviewing grant applications in the order that they have been received.
Notes:
While I look favorably on the idea presented in this proposal given the requests Iāve heard elsewhere for an enhanced Morpho pretense on Telegram, it lacks clearly defined success metrics that would be used as criteria for administering the āsuccessā part of the grant program. I would suggest revising the proposal accordingly.
It seems that the twitter handle you posted does not exist.
While AI transaction assistants are an interesting category, given that no website or other social media links were provided, I question whether there is a clear plan for distribution.
Thank you for your proposal. I am reviewing the submissions and providing notes to help delegates in the review process.
Notes:
Very interesting use case. While itās frankly difficult for me to assess the likely demand, DeFiDude has a long track record in the industry and access to distribution channels. If the target metrics are achieved, the yield generated by deposits through Builda would greatly exceed the total grant request, so the scope appears reasonable.
Thank you for your proposal. I am posting reviews of each grant application in order to assist delegates in their decision making process.
Notes:
I consider borrower vaults to be a promising category in DeFi lending. The budget is reasonable given the scope of work. The part of the proposal I would question the most is the distribution strategy, given that More Markets has shown limited traction so far.
Thank you for your proposal. I am posting reviews of each grant application in order to assist delegates in their decision making process.
Notes:
I look favorably on this proposal given that UI and smart contract work is already complete, with only an audit needed. Unfortunately it does not specify clear success metrics (ie, TVL milestone or net yield generated on Morpho), and should be revised accordingly.
Thank you for your proposal. I am posting reviews of each grant application in order to assist delegates in their decision making process.
Notes:
I look favorably on this proposal given Antonās strong track record of building on the Morpho stack, as well as the interesting potential for trust minimized, autonomous systems in DeFi lending risk management.
Thanks for your comments. Distribution is always challenging even with a large grant and a strong team, as in the initial periods of Oku which you referred to a few times in your comments. We have some additional clarifications to make:
Our products to date revolved around permissioned private credits with a large off-chain component ie in SPV etc. Whilst we believe that the future for RWA onchain private credits is bright, crypto is not yet ready for this asset class as evidenced by the fact that most tokenized private credits projects have either pivoted or failed. What we proposed here is borrow optimisation on existing markets, building on our existing Credio infrastructure and our modelling capability which might not be directly comparable with private credits distribution.
For this product, some markets (with combined TVL greater than the milestone amount) have reached out to express willingness to work together to improve borrower access, costs and user experience. We believe that, just like Googleās premium listing or Morphoās incentives on both supply and demand sides, we could work with markets to highlight additional borrowing incentives beyond the standard optimisation results to accelerate adoption/distribution.
Thank you for your proposal. I am providing notes on the submissions to assist delegates in the review process.
Notes:
While I appreciate the idea of redirecting interest to humanitarian goals, the size of the demand seems unclear and I do not find a compelling distribution plan in the proposal.
Thank you for this proposal. Notes for delegate review:
Zircuitās liquidity bootstrapping program has so far attracted >$700M in TVL for the chain, making it an interesting opportunity for the MORPHO DAO, and deployment is planned there under the new lightweight deployments framework.
While Elaraās existing TVL is modest at $4M, even this level of distribution would generate interest paid on Morpho exceeding the requested grant amount within a year, so I look favorably on the proposal.
Thank you for the feedback, @OneTrueKirk
We appreciate the opportunity to flesh out our proposal a bit here!
Without giving away too many spoilers, hereās
an abridged version of the current TODO list (scope):
not in any particular orderā¦
A few of our ingredients are implemented as placeholders at the moment.
The most obvious one among these is probably the landing page.
These need to be replaced with improved structures, which are already underway
0.1. The ERC20 mint function uses a fixed price schedule for simplicity and PoC.
The current maturity design (with consideration) allows us to very easily
have 1 month maturity or even 3 years with no extra code, no extra tokens.
But what should the payoffs be for various maturities, considering the aggregate level of demand?
We are playing with a couple hypotheses for this in Python at the moment before
moving them into Solidity. The goal is something dynamic and organic, at least relative what we currently have. Thereās no perfect solution here, no one knows the future. But we wonāt settle for something lame.
0.2. The supplementary / complementary incentives program currently implemented in onERC721Received assumes that weāll get on a monthly Twitter Spaces, share screen, and generate a random seed; then plug that seed into the NFT transfer transaction to operate a lottery. This is better than nothing, but ultimately we would like to not simply leave this to chance. It would be better to host it as some kind of competition format, where the best effort wins (no buying votes like JokeRace). Half of our team is currently dedicated to researching solutions around this.
Our governance function _calculateMedian can be parameterised.
As in, itās possible to use the same logic to vote for multiple values,
not just one as we currently have it hardcoded. What values are there?
A few of gradients:
1.1 The level of minimum level of collateralisation that is still acceptable for the protocol to issue insurance coverage payoff hedging delta in ERC20. Similarly, there are mint caps for various maturities. Currently hardcoded at 1 year maturity, up to 777,777 per day (paying homage to the address of the old Morpho-AAVE optimiser).
1.2. To what extent should the size of the deductible should change relative to the size of the delta being hedged (measuring end-usersā individual preference together with aggregate utilisation)? Just like the process with our mint function, we are currently playing with solutions for this in Python. There are many ways to solve it, none of them particularly wrongā¦we prefer not to over-complicate thingsā¦but there is a goldilocks zone that we still havenāt quite found (yet!)
1.3. The Morpho USDC vault we currently integrate is hardcoded; may be useful to allow the vault address to be modified. More on that train of thought: our morph function, the largest in the ERC20, is currently hardcoded to use SUSDE as collateral for emergency borrowing. Like I mentioned in our original post, itās useful to tap into multiple markets according to some community-designated preference. This would involve possibly having to deploy those markets ourselves (weāve already deployed a SUSDE market on Base).
1.4. Finallyā¦the stablecoins that come in to the protocol can enter in any proportion the market sees fit. But once theyāre inā¦it is what is, and itās not what itās not. Thatās a bit concerning, so it would be nice to allow some form of reallocation possibly.
A simple node.js script / service which will continuously call the fold function. Itās not āthatā easy, thereās a bit of calculation involved (optional optimisation). fold deals with liquidation / insurance coverage hedging logic. This caller script can also act as an indexer for the website, so we can show pie charts for all the important events / metrics. We will try to include some optimisations in regards to MEV, with advice from our friends at Manifold, but this isnāt strictly necessary.
Weāve received an audit quote from Hacken, and have done our due diligence on the team. After much experience as auditors ourselves, and having received audits in the past, we are very picky with whom we decide to collaborate. The quote exceeds the ticket we requested for this Morpho grant, but we will try to negotiate a mutually beneficial deal to move forward, bringing us to our final TODO item: close to full test coverage including the latest from our esteemed colleaguesā¦
Very soon, USDS and SUSDS will be available on Arbitrum, and the new FRAX contracts are going to be launched. Integrating these into our final mainnet deployments will super easy. Something a bit non-trivial, though, which we are currently exploring, is turning our ERC20 into a GHO facilitator. GHO already has Uniswap pools with a decent amount of liquidity, so it saves us the trouble of putting those into place. Besides, who needs another random ERC20 right? I like the word āquidā a lot, but itās whatever. What is needed, however, is aligning everyone around a thought experiment that has symbiotic properties benefitting all involvedā¦so that is our ultimate pursuit: knightsā roundtable where we can forget about competing and all learn together, pushing the needle forward collectively for the industry.
Am I forgetting anything? We are always open to feedback, constantly researching and reading. No idea is too small, no negative feedback too insulting. Quality is what we worship, by any means necessary. It would be cool to host a few book clubs together like this one.
