Hello again,
The Morpho markets set up during the summer (USD0++ and LP USD0/USDC), along with the PT markets added later, relied on a hardcoded price of 1 USDC = 1 USD0++ for simplicity and safety reasons, as we always ensured that the DAO could redeem USD0++ in case of bad debt.
With the recent floor price update for USD0++, new Morpho markets, which are not liquidable by price, can now be established definitively. To facilitate migration, rewards for USD0++ in the old markets will be disabled in the coming days, encouraging users to transition to the new markets.
These new markets are all based on the floor price of 0.87USD, ensuring constant liquidity. Paraswap already has an adapter directly connected to the floor routing. Additionally, the new markets have a higher LLTV to accommodate most of the previous positions.
Here are the old markets and their replacements:
USD0++ / USDC
Is replaced by
This market is available
USD0USD0++ / USDC
is replaced by
This market is available
PT-USD0+±27MAR2025
is replaced by
This market is available
PT-USD0+±26JUN2025
is replaced by
This market is available
Usual asks users to migrate their positions to these new markets as soon as possible for obvious reasons. Rewards for positions in the old markets will be deprecated.
Here is a Morpho guide on migrating a position: x.com
Usual also reminds all users that the DAO will provide 1:1 redemption for any bad debt or liquidations at the cap level when the floor price was changed.
We leave it to MEV to describe the new markets as they always do.