Summary
2024 marks an Olympic Year, and the Morpho Association proposes that Morpho joins the festivities by introducing the Morpho Olympics, where up to 10M MORPHO would be awarded as grants to MetaMorpho curators.
Rationale
MetaMorpho vaults play an essential role in Morpho’s vision for lending. They serve as the primary intermediary between the protocol and lenders, curating risk and optimizing returns and liquidity.
Offering rewards to MetaMorpho curators is strategic because it:
- Makes curating vaults more profitable and therefore more attractive;
- Aligns risk curators with the success of Morpho;
- Encourages them to focus on growth rather than direct revenue (thus encouraging lower fees);
- Provides them with resources to negotiate with third parties.
Details
1. Eligibility and Grant Calculation:
Curators of MetaMorpho vaults meeting specified Total Supply thresholds are entitled to receive grants in MORPHO tokens, as outlined in the table below.
Total Supply denotes the 2-month average of the notional USD for deposits that can be borrowed in MetaMorpho vaults open to user deposits per individual curator, excluding deposits from algorithmic market operations (i.e. issuers of stablecoins supplying into vaults, whether curated by themselves or not).
The grant amounts listed in the table are cumulative, reflecting the total amount a curator would have received upon reaching a certain threshold, including any previous grants.
| Total Supply (USD) | Cumulative Grant (MORPHO) |
|---|---|
| 2,000,000 | 10,000 |
| 5,000,000 | 25,000 |
| 10,000,000 | 50,000 |
| 15,000,000 | 75,000 |
| 20,000,000 | 100,000 |
| 30,000,000 | 150,000 |
| 50,000,000 | 250,000 |
| 75,000,000 | 375,000 |
| 100,000,000 | 500,000 |
| 150,000,000 | 750,000 |
| 200,000,000 | 1,000,000 |
| 300,000,000 | 1,500,000 |
| 500,000,000 | 2,500,000 |
2. Grant Disbursement Procedure:
Total Supply assessments will occur on:
- July 31st
- October 31st
- January 31st
- April 30th
Upon a curator reaching a specified threshold during a Total Supply assessment, it will be eligible to the corresponding grant, adjusted for any prior grants received in previous quarters.
Within 7 days following the assessment, a forum post will be published, detailing each eligible curator and their corresponding grant.
Grants will be distributed to vault curators within 30 days after the assessment, following a one-year linear vesting schedule.
3. Discretionary Withholding:
The DAO reserves the right to withhold a grant if it suspects actions that are not conducive to the growth of the protocol, including but no limited to:
- Suspicion of artificially inflating Total Supply;
- Questionable markets in which funds are deposited;
- Doubts about the integrity of a vault curator.
4. Program Closure and Adjustment:
The grant program will cease upon the distribution of 10M MORPHO tokens as grants.
In instances where the total grant amount surpasses 10M MORPHO, final payments will be adjusted proportionally to maintain this limit.
If the 10M MORPHO limit is not reached within eight quarters from program inception, the program will be terminated.
Next Steps
After discussions with the community, we will push a vote on Morpho’s Snapshot
DISCLAIMER: The approval of a governance proposal or distribution of incentives by Morpho DAO does not signify its endorsement of any protocol, vault, market or token. Morpho DAO makes no representations or warranties on any kind with respect to the information, descriptions, protocols, vaults, markets or tokens included in or associated with any governance proposal, including the accuracy, reliability, suitability or completeness of any information contained in any proposal. Your use of such protocols, vaults or tokens is entirely at your own risk. The value of tokens and other digital assets can increase or decrease and there can be a substantial risk that you lose money buying, selling, holding or investing in tokens or other digital assets.