To date, MORPHO incentives have been distributed to markets alongside incentives from the collateral asset project in a co-incentive setting. These programs operate in a two-sided commitment to a reward amount distributed over three months.
This framework is not suitable for all markets. In particular, some markets are not linked to a project, or the project cannot distribute rewards to them. Some of these markets are essential for the growth of Morpho Blue, such as markets with blue chip assets on both collateral and loan assets.
To organize reward distribution on such markets, we propose to use this forum discussion as a thread. This is motivated by the desire to have a flexible setting where emission rates are meant to be adaptable, as there is no kind of commitment with any project. Any rate update will still need to be validated by a vote on Snapshot.
Rewards on WBTC/USDT and WBTC/USDC
To start, we propose to distribute rewards on WBTC markets. Indeed, WBTC is one of the most used collateral with billions deposited in lending protocols.
The markets concerned, with their associated rewards emission, would be:
- WBTC/USDT (86%, Morpho ChainlinkOracle): 7777.77 MORPHO per day
- WBTC/USDC (86%, Morpho ChainlinkOracle): 3888,88 MORPHO per day
Distributions would begin on February 9th.
For reference, the MORPHO emission rate on the wstETH/USDC market will be 7777.77 MORPHO per day from February 9th.
The rate for WBTC/USDT is higher as there is a need to bootstrap USDT vaults, the first of which are expected to be launched this week.
PYUSD is PayPal’s stablecoin issued by Paxos. It has strong potential as it has reached $300 million in TVL and will benefit from PayPal’s global network.
As PYUSD is issued by a traditional player, it seems that playing the RWA card with the wbIB01/PYUSD market could be well suited to potential users. The development of such a market would also highlight the versatility of Morpho Blue.
The market concerned, with its associated rewards emission, would be:
- wbIB01/PYUSD (96.5%): 500 MORPHO per day