Summary
To support lending supply growth as the Coinbase borrow integration scales, authorize 50% of the standard MORPHO reward rate for Spark USDC deposits in the markets integrated by Coinbase on total deposits up to $1B.
Details
MIP 90 and MIP 104 established an exception to the AMO exclusion from MORPHO rewards to Spark given the key role it plays in meeting the USDC borrowing demand from the Coinbase borrow product.
The current state is that there’s around $500M of active loans from Coinbase users and Spark is depositing around $550M into the market, which greatly helped stabilize the rate.
This proposal calls for authorizing 50% of the standard MORPHO reward rate on Spark deposits up to $1B, to ensure stable rates and liquidity growth for borrowers on Coinbase as demand continues to grow.
The term shall conclude 6 months from the starting date.
Next Steps
If authorized, the 50% reward rate would apply starting from the 8th of August.
