MIP 122: Validate and Execute Morpho Adapters Migration Plan

Governance
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Summary

Authorize migration of the MORPHO token a new set of LayerZero adaptors with properly configured rate limiting functionality, and authorize the Morpho Association to set current rate limits in response to observed volume.

Context

  • LayerZero deployed Ethereum and Arbitrum bridging adapters for Morpho with an ineffective rate-limit configuration and implementation, as proposed in MIP 113 - Select LayerZero OFT to Bridge Morpho Token on Arbitrum - #2 by GFXlabs.

  • There are no funds at risk & no impact on the total circulating supply of the MORPHO token.

  • The remediation path requires:

    1/ Create a new route for Eth-Arb bridging by redeploying both adapters

    2/ Migrate tokens locked in the old Eth Adapter to the new Eth Adapter

This proposal asks Morpho DAO to validate and authorize the migration of LayerZero adapters per this specification.

Additionally, the Mint & Burn Adapter to be deployed on HyperEVM, as referenced in MIP 118 - MORPHO Token Deployment and Incentives on Hyperliquid - #2 by fdemiram, will use the new rate limiting implementation.

Migration Specification

The DAO authorizes LayerZero and the Morpho Association to:

  • Redeploy and configure the adapters, then transfer ownership of these contracts to Morpho (LayerZero)
  • Activate the new route by setting the peers for each adapter (Morpho)
  • Migrate tokens locked in the old Eth Adapter to the new Eth Adapter (LayerZero)

Edit: It has come to the attention of the Morpho Association that crosschain volume between Ethereum and Arbitrum has been higher than initially expected.

We therefore propose that the rate limit between Ethereum and Arbitrum be set to 500k MORPHO per month, with the Morpho Association authorized to adjust the rate limits on all networks as needed in response to observed volumes.

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Since we were quoted here, we’ll go ahead and suggest Morpho DAO should open a competitive RFP to take over bridging support since the current vendor was selected without such a process and now requires a fix to be pushed. We’re happy to assist in crafting the RFP if needed.

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