MIP59 - Morpho DAO as owner of Morpho Blue on Base

Governance
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MIP - Morpho DAO as owner of Morpho Blue on Base

  • Author(s): Morpho Association

Context

Morpho Blue and its periphery smart contracts have been deployed on Ethereum for just over four months. During this period, the protocol has seen significant traction, with total deposits reaching $1.2B.

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Since Morpho Blue’s deployment on Mainnet, there has been growing demand from integrators and users to access Morpho Blue on Layer 2 blockchains (L2s) where they can benefit from significantly lower transaction costs.

To date, there is notable interest from integrators already present on Base, an Ethereum L2 built using the Optimism Stack, who have expressed willingness to integrate Morpho Blue as soon as it’s deployed. Hence, Base presents the best opportunity to expand the Morpho Ecosystem and increase accessibility to Morpho Blue, particularly for cost-sensitive users.

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Specification

The Morpho Association has recently deployed Morpho Blue and its periphery contracts with the same configuration as on Ethereum.

Deployment Addresses

Morpho Blue Configuration

  • Enabled LLTVs: 0%; 38.5%; 62.5%; 77.0%; 86.0%; 91.5%; 94.5%; 96.5%; 98%.
  • Enabled IRMs:
    • AdaptiveCurveIRM
    • address(0) to enable “idle” markets, i.e., markets whose only purpose is to deposit idle funds that can’t be borrowed. These markets are especially useful for risk and liquidity management for MetaMorpho vaults.

Now, the Morpho Association proposes that the Morpho DAO becomes the owner.

After the transfer of ownership, the DAO will be able to:

  • Enable new IRMs.
  • Enable new LLTVs.
  • Set a per-market fee.
  • Set the fee recipient.
  • Set the owner.

As a reminder, Morpho Blue’s smart contract is immutable and the functions above are the only functions with an admin role.

Next Steps

The Morpho Association will submit the vote on Snapshot in the following days.

In case the Morpho DAO members accept the proposal, the Morpho Association will transfer the ownership to the Morpho DAO on Base (0xeC5e4a3cE93c284441dC6a2Dd5F0D46a202F00a3) whose multisig must be deployed.

8 Likes
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We can confirm strong interest for vaults on Base and look forward to supporting the deployment with our curated vaults soon.

6 Likes
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finally build on layer 2 network, and you choose base, great decision, i will support this expansion, based.

4 Likes
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In favor as well to see Morpho Blue on Base. Should attract more liquidity and borrowers since gas fees can be prohibitive for a lot of people on Ethereum.

4 Likes
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Looking forward to use Morpho on a low-fee blockchain!

4 Likes
7

Really excited to work on L2, specially on Base.

4 Likes
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The vote is live here!

1 Like
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The vote has been successfully accepted!

The ownership will be transferred to the Morpho DAO multisig in Base, whose address is the following: 0xeC5e4a3cE93c284441dC6a2Dd5F0D46a202F00a3 which differs from Ethereum’s one.

For more information about the reasoning behind the creation of a new address, you can refer to this Safe’s article.

Note that the configuration stays the same as on Ethereum.

1 Like
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The ownership has been successfully transferred!

2 Likes