MIP 112 - OP Grant Allocation for USDC Growth on Base

Governance
1

The Morpho Association proposes to allocate 200,000 OP tokens from the Optimism Council Grant Cycle 33 to incentivize USDC growth on Base, targeting an additional $5M TVL increase to satisfy the grant criteria.

Context

Morpho has received a 500,000 OP grant from the Optimism Council for Base deployment growth, structured as:

  • Phase 1: 200,000 OP (40%) - available immediately
  • Phase 2: 300,000 OP (60%) - unlocked upon achieving $5M TVL increase on the incentivized asset

The grant requires 100% allocation to users and focuses on growing TVL across any asset on Base. Grant details.

Rationale

USDC represents the largest stablecoin market opportunity on Base and offers:

  • Strong user demand and deep liquidity
  • Clear growth trajectory with Coinbase Bitcoin loan integration
  • Strategic alignment with Base and OP ecosystem development

Next Steps

Upon DAO approval, the Morpho Association will:

  1. Implement the incentive distribution mechanism for vaults with USDC as loan asset on Base
  2. Prepare Phase 2 proposal upon milestone achievement
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