Morpho

We believe that both Pablo and Guillaume have ample experience and expertise through their work on DeFi projects like Angle and Merkl, making them well-qualified to serve as multisig signers.

First, this integration itself is a significant initiative to enhance DeFi accessibility, and it makes sense to increase incentives to boost deposits in preparation for rising borrowing demand. Since increased borrowing demand can also lead to greater deposit demand, setting the incentive at 50% of the usual rate seems reasonable.

We believe curators are a key factor in Morpho’s competitiveness and must be appropriately incentivized, so we support the proposal’s move to exclude those who fail to meet a relative threshold that reflects Morpho’s growth. We also believe that both the minimum threshold and the overall reward mechanism, including the amount of incentives, should be regularly evaluated and optimized over the long term.

It allows Morpho’s core team to focus on protocol deployment while Oku provides a valuable initiative on the frontend. Although $400k is a significant amount, we believe it will be justified through user onboarding and incentive programs to be realized that attract users on L2 and alt-L1 ecosystems. For future proposals of this nature, whether submitted by GFXlabs or other contributors, it would be beneficial to design a compensation scheme that aligns the incentives of the proposer with those of the Morpho DAO as Leuts suggested. Ideally, the compensation for contributors like GFXlabs should be more directly tied to measurable performance outcomes, such as the growth in TVL driven by the Oku frontend initiative.

This allows the core team to focus solely on the deployment of the core protocol, significantly reducing their workload related to crosschain deployments. Additionally, by encouraging external developers to create independent frontends on specific chains, the framework fosters flexible user experiences and facilitates the addition of unique features tailored to individual ecosystems.

We believe a sudden, one-shot reward reduction could unexpectedly trigger a steep TVL decline, so a phased approach lets us monitor and respond quickly if TVL decreases beyond expectations. While the estimated $600k cost for this multi-stage method based on our calculation is a concern, we view it as a reasonable trade-off compared to the risk of losing a significant portion of our accumulated TVL at once.

The proposed changes appear to maintain a sufficiently competitive yield compared to key competitors, ensuring user attraction while optimizing costs. With more detailed data expected early next year, we look forward to contributing to future discussions on incentive design that are grounded in robust data analysis.

Supporting the liquidity of the MORPHO token contributes to the stable growth of the project. Combined with Uni v3, which is already whitelisted on Base, we expect this to improve the overall liquidity of the MORPHO token across Base.

We recognize the clear risks of relying on external protocols that are not immutable for the Optimizer. While the current TVL is approximately $500M, we believe this decision is essential to safeguard the growth of Morpho Blue and maintain the Morpho brand accordingly.

We support this proposal as it enables Morpho to secure a low 7-figure fee, even though the exact amount is undisclosed. Additionally, it does not place an excessive burden on the contributors’ resources.

We believe that Ethereum’s rollup-centric roadmap makes it strategically important to secure a significant position in the largest rollup ecosystem over the medium to long term. Therefore, incentives on Base should be actively increased. While this proposal represents a gradual increase, we remain open to considering more assertive approaches if deemed necessary in the future.

The introduction of a grant program is a vital step in expanding the ecosystem. Running it as a pilot program will likely reveal various challenges, and we aim to contribute meaningfully to address them.

Contributors should be fairly compensated for their efforts, and the amount proposed is reasonable and well within acceptable parameters. Importantly, the allocation process appears both transparent and proper.