MIP59 - Morpho DAO as owner of Morpho Blue on Base

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.

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.

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 (0xcBa28b38103307Ec8dA98377ffF9816C164f9AFa) whose multisig must be deployed.

8 Likes

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

5 Likes

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

4 Likes

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.

3 Likes

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

3 Likes

Base is a great ecosystem that has seen significant growth in the last few months.

I know our community would love to integrate bsdETH as soon as possible

A couple of notes about bsdETH

  • Safety first LST Index
  • $6 Million TVL
  • Over $16 Million in liquidity between Aerodrome and Beefy!

Many projects such as this are excited to have you join the Base community

1 Like

Really excited to work on L2, specially on Base.

3 Likes

The vote is live here!