MIP - MORPHO Rewards on Optimizers post Morpho Blue launch


This post outlines the distribution of rewards on Morpho Optimizers after the Morpho Blue launch on January 9th.

We propose to:

  • Stop using a defined schedule in favor of a flexible daily rate;
  • Set the daily rate at 10k $MORPHO;
  • Stop distributing rewards on CompoundV2 Optimizer.


For Age 9, we implemented a constant daily rate of 16k $MORPHO, which was planned to last until the Blue launch.

We propose to keep this flexible way of doing things, with a daily rate that can be adjusted without a defined schedule. As the concept of Ages loses its relevance, it will be abandoned.

Morpho Blue will be launched on January 9th. Most growth efforts will now focus on its expansion. Incentives for Optimizers should therefore be reduced, but not eliminated, as Optimizers are a strong source of user acquisition for the Morpho ecosystem. We propose to set the rate to 10K $MORPHO per day on Optimizers after the launch of Morpho Blue.

We propose to cease incentivizing the CompoundV2 Optimizer, given that Compound V2 is being deprecated, aligning with the logic of focusing rewards on areas with growth potential. Currently only $40M is deposited on the optimizer and less than $3M is matched.

Applying the same model as in previous ages (detailed in this forum post) to compute the distribution of rewards (setting markets with P2P disabled to zero), the markets would receive the following shares of rewards:

Optimizer AaveV3-ETH AaveV2
Weight 38.58% 2.57% 35.57% 9.73% 4.75% 8.80%

The allocation of rewards between the supply and borrow side for a given market will follow the repartition of supply and borrow on the markets on January 9th, except for WETH where it will be only on the supply side on AaveV3-ETH Optimizer and shared equally on both sides on AaveV2 Optimizer.

Next Steps

After discussions with the community, we will push a vote on Morpho’s Snapshot.


The vote is live!

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