Redacted <> Morpho Blue - Incentives in the apxETH markets


Redacted intends to distribute $75,000 as incentives in apxETH/WETH markets over three months, through Re7’s curated vault.

We propose that the Morpho DAO handle this distribution and request that MORPHO tokens be included as additional incentives.

Redacted x Morpho Blue

Redacted focuses on the development of DeFi products, including Hidden Hand, Pirex, and Dinero. These products are designed to improve liquidity, make governance processes more efficient, distribute incentives, and scale yield throughout DeFi.

Dinero is a decentralized liquid staking protocol built by Redacted on Ethereum, allowing users to stake their ETH and participate in the DeFi ecosystem while maintaining composability. Users can deposit ETH to mint pxETH, utilize pxETH within DeFi, deposit pxETH for apxETH to earn enhanced staking yield, or redeem for ETH at any time via the protocol or liquidity pool.

Unlike traditional lending pools, Morpho Blue allows Redacted to take a more targeted approach to incentivizing specific use cases. On Morpho Blue, we can incentivize a specific pair of assets with a strong use case that will help drive further adoption of our token. apxETH vaults fall into this category.

apxETH earns boosted staking yields, approx 8% APR or more. By launching and incentivizing apxETH/WETH markets, users can take advantage of the spread between the apxETH return and the borrow rate, to create a leveraged position that earns a multiple of yield.

Proposal Details

We plan to distribute $75,000 in rewards in BTRFLY in the pxETH market over three months.

We propose that the Morpho DAO handle this distribution by integrating it into the Standardized method for distributing incentives on Morpho Blue markets.

The growth of such a market will benefit Morpho, therefore it’s prudent for the Morpho DAO to distribute MORPHO tokens over the three month period to help incentivize its expansion.

Should the proposal be accepted, we will send the aforementioned amount to morpho.eth.


@terence Thanks for this proposal.
Great to see apxETH coming on Morpho and your willingness to develop it!

We believe the apxETH/WETH market has great potential alongside the Re7 vault. We propose to allocate a total of 150k MORPHO as incentives over the three month period to help it grow.

The BTRFLY and MORPHO distributions would follow the Standard method for distributing incentives on Morpho Blue markets .

A vote will be initiated shortly. Should the vote pass, its execution will be conditioned on the receipt of the BTRFLY amount on morpho.eth and the actual inclusion of the market in the RE7 vault.

NB: distribution of incentives by the MORPHO DAO does not signify endorsement of market risks.