Summary
Lemon, a crypto fintech app in Latin America with over 4 million users, has integrated Morpho vaults for their Lemon Earn product. This is a proposal to award them an initial integration grant, and authorize additional milestone grants based on total deposits achieved.
Grant Totals and Milestones
Integration Grant –
- $20,000 USD awarded for the integration of Morpho vaults into Lemon Earn
Liquidity Grant –
- $20,000 USD, upon the deposit of $14,000,000 Lemon Earn users into Morpho vaults, calculated based on a 7 day average. This portion of the grant will have no vesting period.
- $25,000 USD, upon the deposit of $25,000,000 of Integrator Supply by Lemon Earn users into the Lemon Vaults, calculated based on a 30 day average. This portion of the grant shall have a one-year linear vesting period.
All grants will be paid in MORPHO tokens, using the current price at the time the disbursal transaction is prepared for the Morpho Rewards Multisig. The integration grant will be paid immediately (allowing for operational delays) following the conclusion of the DAO vote, while the others will be disbursed as milestones are accomplished.
Rationale
Integration grants + milestone based bonuses are a useful mechanism to incentivize sticky liquidity from real-world integrations. Representing a 0.3% incentives spend on total deposits if all milestones are completed, this is a favorable growth expenditure for the DAO compared to traditional public liquidity incentives onchain where cost of capital is higher.