Gm!
I do not support this proposal or any increase in rewards on Base. I am happy to change my mind with some quantitative data to justify an increase in Base rewards if they can be provided.
My reasons below:
- Base, in general, is not a very defi focused chain, so I don’t see an increase in incentives driving an increase in TVL. I don’t believe there is a large enough existing market on Base that would be captured that haven’t already migrated from an existing Base dapp.
- I don’t believe Morpho needs to incentivize users moving from other L2’s to Base, but leave that incentivization to the Superchain and/or Base themselves. Coinbase who owns Base is far better positioned to expend capital for chain adoption. Morpho should be more cautious with its capital.
- The collateral market is immature and mainnet TVL is stickier and thus I believe the per-dollar reward rate is more valuable on mainnet.
- MORPHO rewards are lower than Moonwell’s and in general the rewards can have a negative impact on the most important pools which have low borrow rates.
For many of the reasons above I believe that the ROI on increasing the Base rewards is not worth it. Again, happy to see data proving otherwise, otherwise I will be voting no.