Project Title: Morpho Reallocation Agent Framework
Organization name: MonarchLend.xyz
Organization website and/or social media links:
About us + prior experience:
About Monarch:
MonarchLend is a project started in mid-May 2024, with the aim to be an interface for supplying assets directly to MorphoBlue, the core lending units within the Morpho ecosystem, being complementary to Morpho’s official UI which focuses on vaults. We believe this is an essential market that will help unleash the full potential of isolated lending, because it supports a wider range of user profiles that might be missed by vaults or any “pooled strategies”.
The platform has evolved and now has many features such as reallocation, and focuses on automation of fully customizable positions. We achieved this by building the first version of the “MonarchAgent” (v1) contract, which is the minimum contract users can authorize to reallocate lending positions among their pre-approved markets. This feature is recently live in beta on Base.
Contributors
Anton Cheng
Solo builder of MonarchLend. Senior Solidity developer and security bounty hunter. Built major DeFi option protocols since 2020 including Opyn Gamma, Squeeth, Lyra V2, and an independent project Grappa Finance. Former developer at Opyn and Lyra. Current MorphoDAO delegate.
Shao
Senior Solidity Engineer with 3+ years of DeFi development experience. Previously served as senior smart contract developer at Perpetual Protocol and developed Cruie Protocol. (Github)
Kei
Senior UI/UX Designer with 5+ years of experience in crypto, specializing in DEX and wallet interface design.
Leading Contributor:
Anton Cheng
X: https://x.com/antonttc
Github: antoncoding (Anton Cheng) · GitHub
Requested budget: 27K MORPHO
Scope of Work: We propose to build a new version of the MonarchAgent contract (V2), with a more extensible architecture, along with other infrastructure needed to support a wider range of “agents” that help optimize yields for all types of suppliers on MorphoBlue.
The project can be broken down into:
- Smart Contract: Design, develop and audit the MonarchAgents V2 contract with the following objectives:
- An extensible architecture with hooks that handle all types of “on-chain constraints” beyond the caps in V1
- Develop the first set of hooks users can efficiently configure to customize risks
- Highly optimized for L2: compress calldata to optimize agent operation costs
- Cross-chain: Make sure the helper contract can be extended to suit cross-chain strategies (reallocating between different L2s)
- Frontend: Improve the current MonarchLend.xyz interface while keeping everything open source, and achieve the following objectives:
- Allow users to authorize and set up complex constraints, and choose among different agents to help optimize risk/yield profiles based on those settings
- Allow users to see live stats and status of agents, and easily manage agent access
- Transparency: A dedicated webpage that allows users to compare agent performance based on on-chain history of utilizing strategies with identical constraints, using real money, aka, live benchmarking which agent is making the most money with real money deposited.
- UI/UX: Design of above objectives
- Backend:
- Indexer + public API to get agent data
- Implement a Python framework for builders to easily build and run agents
- Notification API: Allow users to set up Telegram chats to receive notifications about their position changes
We will focus on achieving all these objectives on Base.
Benefits for the Morpho Ecosystem:
- For everyone: More direct liquidity into Morpho markets without the need of middlemen. This will attract people with specific risk tolerances and indirectly improve liquidity for all participants across all markets.
- For suppliers: Users can enjoy choosing from a wide range of automation strategies while keeping their risk profiles completely customizable.
- For vaults: The on-chain components (Agent & Hooks) will be highly reusable and allow vaults to use them as vault allocators. People can create more autonomous vaults with this kind of “agent-allocator” architecture to create more decentralized vaults with on-chain immutable constraints.
Metrics:
- Complete development of all engineering objectives, with contract security audited and has 0 high severity findings.
- At least one other entity running agents, with > $100K authorized
- Total funds authorized under agents > $3M within 4 months after public launch
Timeline:
- Beta Launch (2 Months):
- Complete smart contract design, development, and audit
- Complete UI/UX design of the new platform
- Develop agent bot framework
- Beta Launch (allow users to authorize or migrate to MonarchAgent V2)
- Production Launch (+1.5 Months):
- Complete all frontend components
- Public Launch
Future Directions:
- Short term – AI agents: Build and run an AI agent with LLM model, because AI is inevitable and it’s very cool. Planned for Q2 2025.
- Long term – Fully achieve self-sustainability as a P2P protocol: user pays agents a fair amount to reallocate within their own risk appetite, with highly customizable constraints.