Context
Morpho has seen great success in establishing a competitive market of risk curators, and established the Morpho Olympics program to reward curator success. So far, 1.58M MORPHO have been distributed under this program.
The current rewards model uses static thresholds which are not scalable as the protocol continues to grow. Additionally, now that a large number of new deployments are being contemplated, there is a need to clarify how the Olympics fits into this.
Proposal
To address these concerns, the Morpho Association proposes that the DAO considers the following amendments to the Olympics program:
- Set the minimum threshold for Morpho Olympics rewards to be equal to 1% of total lending deposits. This threshold will be taken at the start of each quarter, with the first threshold being taken after this vote is passed.
- Clarify that only lending deposits on Base and Ethereum mainnet are counted for the Morpho Olympics, unless explicitly approved by the DAO in the future for other chains. The motivation for this is to reduce overhead around calculating asset values on all chains and the need to eliminate AMOs and other forms of “inorganic” activity from the calculation.
Next Steps
If the proposal is passed, the steps above will be applied to all future Olympics distributions, with the first lending deposits threshold snapshot being taken upon the conclusion of the vote.