Plume - Morpho Coincentives Proposal

Summary

Plume proposes to allocate ~$1.5M in incentives for a deployment of the Morpho Protocol on Plume mainnet, with $500k in matching incentives from the Morpho DAO after milestone goals are met.

About Plume

Plume is the first purpose-built chain & ecosystem designed to bring the real world onchain. We’ve built a full stack ecosystem with over 180+ projects, 3.75M+ active addresses on our testnet, and over $4B+ in committed assets, making Plume the default for any existing or novel RWA projects to deploy.

Our technology makes Plume both the easiest place to bring anything from the real world onchain (both physical assets via our tokenization engine as well as synthetics) and also the best place to transact in RWAs.

Through the integration of tooling, ecosystem, users & liquidity, we are building the only DeFi-like ecosystem around RWAs where crypto natives can interact with RWAs in a crypto native way. This is highlighted in our 8-week testnet where over 3.75M+ active addresses performed over 260M+ transactions onchain. In tandem, we’ve built the largest & most engaged RWA community with over 550K+ followers on Twitter, 350K+ on Discord, and more.

Plume has raised from strong investors like Brevan Howard, Galaxy Digital, Haun, Superscript, Faction, Archetype, Hashkey and others. Our team comes from Coinbase, Robinhood, LayerZero, Binance, Galaxy, dYdX, and several other category-defining companies that give us a distinct advantage to finally bring RWA markets onchain.

Why Plume x Morpho?

The Morpho Protocol is the premier infrastructure for permissionless DeFi lending. The isolated markets + vault curator model is particularly well suited to onboarding tokenized ‘real world assets’, with efficient market-based interest rates for each pool and experienced curators capable of evaluating the cost and benefits of lending against a wide diversity of collateral types.

Proposal Detail

Plume will provide $1.5M in token incentives to Morpho markets over 8 months.

Once a $250M active loans threshold has been reached, and after a $150M active loans threshold has been maintained for at least three months, the Morpho DAO will allocate $500k in MORPHO rewards over an 8-month period to Morpho markets on Plume. Plume may decide on the start date of incentives distribution, as well as the rate of distribution at any given time.

Plume will select which lending assets will be incentivized, with incentives distributed in a neutral manner across Morpho markets (without preference for any particular curator vault), with the relative amount of incentives for each lending asset, as well as the portion of incentives awarded to borrowers, to be determined by Plume. MORPHO matching incentives will target the same assets, but in a relative proportion subject to the decision of the Morpho DAO.

The Morpho Association will integrate Plume on the app.morpho.org domain, selectable through the standard chain dropdown menu. The incentives from Plume will be initially distributed via Merkl. The Morpho Association will determine whether to distribute the MORPHO coincentives via Merkl, or using the Morpho uniform rewards stack. Morpho contracts deployment and frontend support will be completed by or before April 30.

2 Likes

I’m supportive of this proposal. Plume’s specialized tooling around RWA provide an interesting growth case for which the Morpho architecture is well suited, allowing users to lend in a variety of places on the yield and risk spectrum.

The structure of the coincentives proposed is favorable, given that MORPHO will be allocated only once a significant growth has been achieved. With $250M active loans, the MORPHO incentives spend is modest, representing 0.2% APR on the active liquidity.

2 Likes

We also support this proposal and agree with the points raised.

As @OneTrueKirk highlighted, the incentive structure itself is well-considered. The conditionality, requiring significant traction ($250M active loans) before Morpho DAO contributes rewards, is a prudent approach.

Furthermore, we see strong strategic merit in this collaboration. Partnering with Plume, a chain specifically focused on RWAs, provides Morpho with a valuable opportunity to explore new lending markets and use cases within the RWA sector that might not be readily available or suitable for general-purpose L2s. Given the growing importance of RWAs for the future expansion of DeFi liquidity, this initiative represents a targeted strategic investment for Morpho, distinct from a standard L2 incentive program. We believe this focus on the RWA vertical holds significant potential.