# MIP 119 - Spark Rewards Update **URL:** \ **Category:** Uncategorized\ **Created:** [October 9, 2025, 7:17am UTC](https://forum.morpho.org/t/mip-119-spark-rewards-update/2042 "2025-10-09T07:17:02Z")\ **Posts on this page:** 1\ **Page:** 1
**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:** [October 9, 2025, 7:17am UTC](https://forum.morpho.org/t/mip-119-spark-rewards-update/2042/1 "2025-10-09T07:17:02Z")
## **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](https://forum.morpho.org/t/mip-102-rewards-update-proposal/1725?utm_source=chatgpt.com) and [MIP 109](https://forum.morpho.org/t/mip-109-optimistic-rewards-v1-1/1855?utm_source=chatgpt.com). ## **Details** Spark’s USDC deposits add depth and stabilize borrower rates in the Coinbase-integrated markets. Following [MIPs 90](https://forum.morpho.org/t/mip-90-spark-usdc-deposit-rewards/1394), [104](https://forum.morpho.org/t/mip-104-spark-usdc-deposit-rewards-2/1788), and [115](https://forum.morpho.org/t/mip-spark-usdc-deposit-rewards-3/1950), 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.