# MIP 104 - Spark USDC Deposit Rewards 2

**URL:** <https://forum.morpho.org/t/mip-104-spark-usdc-deposit-rewards-2/1788>\
**Category:** Rewards\
**Created:** [May 22, 2025, 3:10am UTC](https://forum.morpho.org/t/mip-104-spark-usdc-deposit-rewards-2/1788 "2025-05-22T03:10:54Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![MorphoAssociation](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.morpho.org/morphoassociation/32/249_2.png) [@MorphoAssociation](https://forum.morpho.org/u/MorphoAssociation)\
**Post date:** [May 22, 2025, 3:10am UTC](https://forum.morpho.org/t/mip-104-spark-usdc-deposit-rewards-2/1788/1 "2025-05-22T03:10:54Z")

</div>

## Summary

To support lending supply growth as the Coinbase borrow integration scales, authorize 25% of the standard MORPHO reward rate for Spark USDC deposits in the markets integrated by Coinbase on total deposits between $100M and $500M.

## Details

Per [MIP65](https://forum.morpho.org/t/mip65-new-scalable-rewards-model/617), algorithmic market operations are generally excluded from MORPHO rewards, in order to ensure that the rewards budget is incentivizing direct usage of the Morpho protocol.

[MIP 90](https://forum.morpho.org/t/mip-90-spark-usdc-deposit-rewards/1394) established an exception to this whereby Spark could receive 50% of the standard MORPHO reward rate for USDC lent against cbBTC in the market used by Coinbase, as well as other markets integrated for Coinbase borrows in the future, up to a total supply of $100M.

Since then, Coinbase borrows on Morpho have scaled up to [over $200M](https://dune.com/ryanyyi/coinbase-onchain-loans) in active loans, while Spark has steadily [scaled up](http://forum.sky.money/t/may-29-2025-proposed-changes-to-spark-for-upcoming-spell/26372/2) USDC supply into the cbBTC/USDC market, helping to stabilize rates for Coinbase borrowers. This proposal calls for authorizing 25% of the standard MORPHO reward rate on Spark deposits between $100M and $500M, to ensure stable rates and liquidity growth for borrowers on Coinbase as demand continues to grow.

We also propose that clear time durations are specified for the rewards for Spark:

Both the previously allocated rewards (50% of the baseline MORPHO reward rate up to $100M deposits) and the new rewards (25% of the baseline MORPHO reward rate on deposits between $100M and $500M), the term shall conclude 6 months from the date this proposal is approved by the DAO.

## Next Steps

If authorized, the 25% reward rate would apply from time the proposal is approved by the DAO.