@adcv Thanks for this proposal.
It is great to see that Liquidity Observation Lab believes in the symbiosis between Blue and stETH and is committed to making it happen.
wstETH is the most used collateral in DeFi lending. As an illustration, it represents over 99% of the collateral used in Morpho AaveV3-ETH Optimizer. Since it represents such an important part of Morpho Blue’s potential, we suggest to allocate a total of 1.4M MORPHO over the three-month period.
The wstETH and MORPHO rewards would be distributed across markets that use wstETH as collateral and are part of a whitelisted MetaMorpho vault. This is the case of the USDC(wstETH) and WETH(wstETH) markets. We suggest that the incentives be split 50/50 between these two markets. The distribution on each market would follow the Standardized method for distributing incentives on Morpho Blue markets.
A vote will be scheduled in the next few days. Should the vote pass, its execution will be conditioned on the receipt of the wstETH on morpho.eth.
NB: distribution of incentives by the MORPHO DAO does not signify endorsement of market risks.