MIP71 - Winding Down Optimizers Phase 2

Governance
1

MIP - Winding Down Optimizers Phase 2

  • Author(s): Morpho Association

Summary

We propose continuing the deprecation of low-usage assets on Morpho Optimizers, which started 3 months ago in MIP52. We also suggest stopping all MORPHO rewards on Optimizers to further incentivize migrations to Morpho Blue.

Specifications

  1. Stop all rewards on Optimizers.
  2. Compound Optimizer:
    • Pause the supply and borrow of:
      • DAI: $1.42m supply, $100k borrow
      • USDC: $3m supply, $7k borrow
    • This will completely prevent the capacity to enter new positions on Compound but repaying or withdrawing positions is still possible.
  3. AaveV2 Optimizer:
    • Pause the supply and borrow of:
      • DAI: $1m supply, $10m borrow
      • USDT: $13m supply, $3m borrow
    • The WETH ($285m supply, $280m borrow), USDC ($28m supply, $27m borrow), and WBTC ($70m supply, $5m borrow) markets would continue to operate as normal.
  4. AaveV3 Optimizer:
    • Pause the supply of collateral for:
      • USDC: $6.6m supply
      • rETH: $4.4m supply
    • Only wstETH could be deposited as collateral.
3 Likes
2

The vote is live here!

3

Completely in favor of this proposal.

1 Like
4

nooo, why? myself and all of my friends depend on the morpho aave v2 and v3 platforms. morpho blue is too isolated and does not serve the same function. why would you stop it and not just let it run.
theres clearly no point in voting as every other vote is yes, but I dont get why this is even a thing. this is a good system!
We’ll all end up back on aave v2, not morpho blue. we dont account for much, but up to 10Mil at a time between us, please change your minds!

5

Hi @rocketrob, we’re sorry to hear that this is affecting your positions. We’d like to address the issue and find a solution for you. To better assist you, could you please provide more details about your use case? Specifically, we need to better understand what functionalities Morpho Blue lacks compared to Optimizers.

Feel free to DM me on Telegram: MerlinEgalite

6

Myself, and a small group of 6 of us all have been utilising defisaver to manage our morpho aave positions. we specifically moved over from aave v2 to morpho aave v2 because it helped minimise the interrest we were paying on dai, usdc and usdt.

We hold BTC, ETH and stETH on fairly tight margins, and rely on the combined leverage of multiple assets, and shared loans. utilising morphoaave v2 markets on defi saver we’ve been able to easilly switch the underlying loan against the combined collateral with the wild interrest swings.

Right now USDC is up at 15% which is currently active, whilst dai has been switched off and is down at 5%, and I cant loan against that anymore to increase my positions at a favorable rate.

I do use morpho blue for Eth>wsteth looping, but that market gets kinda annoying sometimes too, with people borrowing very close to the pools capacity and driving up interrest rates, and switching in and out of that is cost prohibitive with gas fees for mates who have under 100K invested (its annoying for me too), so we tend to rely on morphoaave v3 for this part - we’d use v3 more if we could boost against the stables, but we end up stuck spreading collateral accross several markets.

were unable to borrow stables against multiple collateral assets on morpho blue using defi saver, so it just doesnt fill the void for what we’ve been using it for

7

Hi, as a personal investor, I am also quite curious compared to Morpho Blue why use Optimizers?

8

for me, optimizers gave the best of both worlds - the better peer to peer rate, without jacking the price to the moon when pool liquidity is low, as it falls back to the much larger underlying pool for any amounts not directly matched. without running as an optimiser, its just another pool, and a smaller one. from my perspective, the optimiser is way better.

9

But this can’t be done by Morpho Blue right?

They should combine optimizer and Morpho Blue togetehr :joy:

And there is liquidity issue I guess?