Summary
In partnership with Morpho and Re7, Reserve Protocol will distribute $45k in RSR as incentives in the ETH+/ETH market over three months, once the ETH+/ETH market has been created on Morpho Blue.
We propose that the Morpho DAO handle this distribution and request that MORPHO tokens be included as additional incentives.
Proposal Details - Reserve Protocol x Morpho Blue
Reserve Protocol is a free, permissionless platform on Ethereum mainnet (and Base L2) to build, deploy and govern asset-backed currencies referred to as “RTokens.” RTokens are always 1:1 asset-backed, allowing for permissionless minting and redemptions onchain. ETH+ was the 2nd RToken deployed on the Reserve Protocol.
ETH+ is a safety-first diversified ETH LST index with up to 4% APY to holders deployed in April 2023 using the Reserve Protocol. It has ~$8M TVL. ETH+ is backed 1:1 and collateral is permissionlessly redeemable without fees. Moreover, ETH+ enjoys overcollateralization shielding to mitigate the effects of asset backing depegs. ETH+ is governed fully onchain by RSR stakers providing overcollateralization. ETH+ is currently backed 50% by rETH and 50% by stETH, though governance votes could affect backing changes in the number and proportion of assets.
Reserve is excited to partner Morpho and Re7 to release one of the first lending markets for the ETH+ product. Reserve plans to distribute $45k in rewards in RSR to the ETH±ETH market over three months, once the ETH+/ETH market has been created on Morpho Blue.
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 be mutually beneficial to all parties, and for that reason we suggest that Morpho DAO distribute MORPHO tokens over the three month period to help co-incentivize expansion.
Should the proposal be accepted, we will send the aforementioned amount to morpho.eth