Renzo <> Morpho Blue - Incentives in the ezETH(WETH) Market

Summary:
Renzo Protocol intends to distribute $45k in USDC as incentives in the ezETH(WETH) market over three months, upon listing of the Re7 vault.

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

Renzo Protocol x Morpho Blue:
Renzo Protocol is a leading liquid restaking platform facilitating easy access to liquid restaking tokens. The protocol serves as the interface to the EigenLayer ecosystem by securing AVSs and offering additional yields. Morpho Blue presents an innovative approach for Renzo Protocol to incentivize specific use cases, particularly in the [ezETH(WETH)] market, driving further adoption of the token. With the ability to target specific pairs of assets, Morpho Blue aligns perfectly with Renzo’s goals.

Proposal Details:
Renzo Protocol plans to distribute incentives in USDC on a linear basis. This will work out to approx $5k - $15k - $25k in total per month, with a constant daily rate, starting on the launch date of the vault.

We propose that the Morpho DAO handle this distribution by integrating it into their reward distribution system introduced in this post.

We have integrated with Morpho Blue to allow users to deposit ezETH as collateral to borrow ETH.

Points will be tracked as follows:

  • The ezETH deposited as collateral will continue to earn ezPoints points at 1x and Eigenlayer points at 1x. Users will maintain all benefits of holding ezETH.
  • Looping is permitted. Points will accrue based on the deposited collateral.
  • The Renzo Protocol and Morpho Blue have provided USDC and Morpho incentives to the supply side of the market; however, to further incentivize , 1x Renzo points will be awarded for supplying ETH . They will accrue at the same value as holding ezETH. *Note that EigenLayer points are not earned for supplying ETH.

We encourage users who want to learn more to refer to the Morpho Blue AdaptativeCurveIRM.

The growth of the ezETH(WETH) market will benefit both Renzo Protocol and Morpho, making it 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.

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

We believe the ezETH/WETH market has great potential alongside the Re7 vault. We propose to allocate a total of 90k MORPHO as incentives over the three month period to help it grow.

The USDC 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 USDC on morpho.eth.

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

2 Likes