MIP 93 - Call for Grants

Governance
19

Project Title: Morpho x Stake DAO : Factory for Curve LP Integration through OnlyBoost V2

Organization Name: Stake DAO

Organization Website / Social Media:

About:

Stake DAO is a DeFi protocol focused on maximizing yield for liquidity providers on various DeFi protocols, and unlocking the power of governance tokens of those protocols. By offering a liquid staking wrapper of those governance tokens, Stake DAO accumulates large amounts of boosting power which allows it to offer boosted access to providing liquidity on those protocols. This architecture is the foundation powering OnlyBoost, a yield optimization strategy for underlying protocols like Curve.

OnlyBoost mechanism (example of Curve):

  • Users deposit Curve LP tokens into OnlyBoost vaults

  • The protocol automatically optimizes positions between Curve (boosted by Stake DAO’s veCRV balance and veBoost delegated to Stake DAO by other veCRV holders) and Convex based on highest veCRV boost

  • Users receive optimized CRV rewards + extra tokens (additional gauge rewards)

  • The system handles gauge deposits, rewards claiming and distributions

Leading Contributors’ X handles:

  • Hubert: HubertX13

  • Warren (smart contract developer): warrenception

  • Chago: chago0x

Requested Budget: 25,000 MORPHO

Use of Funds:

  • Smart contracts and UI development

  • Security audit

  • Testing & Deployment

Scope of Work:

Build a Morpho-specific wrapper for OnlyBoost V2, enabling users to use their Curve LP tokens as collateral on Morpho markets while still receiving their CRV rewards and other extra rewards, and maintaining their yield optimization strategy. The integration will be deployed on Ethereum mainnet initially and will be freely accessible to all users with no additional fees. It will be accessible on other chains after Curve’s boost goes live on other chains.

Key components:

  1. Morpho-specific wrapper implementation:

  • Integration with Morpho lending/borrowing functions

  • LP token collateral management

  1. Integration with OnlyBoost V2 architecture:

  • Connection with existing reward systems

  • Safety mechanisms

  • Unified user interface

Benefit for the Morpho Ecosystem:

The problem we are trying to solve is an easy allocation of claimable rewards for users depositing yield generating collateral on Morpho. Currently, curators need to build adapters and wrappers to do this. With the factory we intend to develop, anyone would be able to deploy collateral that generates claimable rewards

By integrating with Curve’s LP ecosystem ($2.5B TVL, up to $20bn TVL during the last cycle), this first factory implementation will unlock significant new collateral opportunities for Morpho. Users can maintain their yield farming positions while accessing Morpho’s lending markets, creating a powerful synergy that drives protocol growth. This initial integration paves the way for expanding to other major DeFi protocols, positioning Morpho to capture an increasing share of the LP tokens market as collateral.

It should also enable looping between lending and liquidity providing, hence allowing lending yields to align with the generally higher liquidity provision yields, and increasing Morpho’s lending attractiveness.

This will be a huge step towards users receiving yield on their collateral on Morpho, yield that could finance their borrowing rate, or even more.

Metrics:

  • Factory deployment and integration metrics:
    • Completion of all security checks
    • Successful wrapper deployment for Curve LP tokens
  • Initial Adoption metrics:
    • 5m$ successful deposits using the Factory

Payment structure (following template requirements):

  • 20% upfront (5,000 MORPHO)
  • 20% upon Factory deployment and integration metrics (5,000 MORPHO)
  • 60% upon Initial Adoption metrics (15,000 MORPHO)

Timeline:

1 month development once OnlyBoost V2 is deployed:

  • Morpho wrapper implementation

  • Integration with OnlyBoost V2

  • Testing phase

  • Public launch

Future Directions:

  • Extension of the Morpho-specific wrapper to all Stake DAO locker strategies (Balancer, PancakeSwap, Spectra, Pendle, F(x), Frax, etc), including governance token lockers
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