Summary
We propose adjusting AMO rules to apply the same standard MORPHO reward rate to any depositor that deposits any asset eligible under MIP 102 and MIP 109.
Details
Spark’s USDC deposits add depth and stabilize borrower rates in the Coinbase-integrated markets. Following MIPs 90, 104, and 115, SparkDAO was being rewarded for its USDC deposits at a lower rate to support the Coinbase integration. Because USDC deposits are sourced from swaps/redemptions rather than endogenous minting, they do not constitute AMOs. We recommend no entity-based exclusions. We also recommend not applying reduced rates to any depositor of USDC, USDT, WETH, or EURC (on Base), while retaining AMO exclusions for endogenously mintable assets (e.g., DAI, USDS).
The Association may pause or adjust rewards in case of abuse (circular flows, rehypothecation for reward capture, etc).
Next Steps
If approved, this update will take effect starting at the end of the vote, and will update the general rewards framework.