Moonwell

Summary

This proposal seeks to list MORPHO, the governance token of the Morpho Protocol, as a new collateral asset in Moonwell’s Core Lending Markets on Base. MORPHO is used for onchain governance of the Morpho Protocol, allowing holders and Morpho delegates to vote on key protocol upgrades and initiatives.

Morpho is a permissionless, capital-efficient lending protocol that supports isolated market creation and vault strategies, with Moonwell operating and providing frontend support for several vaults and isolated markets within the Morpho ecosystem. The MORPHO token is now transferable and live on Base, with liquidity growing across both DEXs and CEXs.

Gauntlet has reviewed the asset and recommends onboarding MORPHO with conservative parameters to account for its current liquidity profile. This listing will also allow the Moonwell community to deepen alignment with a key protocol partner while expanding support for blue chip Base-native assets.

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Token Information

• Name: MORPHO
• Token Standard: ERC20 (Wrapped)
• Token Contract (Base): 0xBAa5CC21fd487B8Fcc2F632f3F4E8D37262a0842
• Total Supply: 1,000,000,000
• Circulating Supply on Base: 224,000,000
• Chainlink Price Feed (Base): 0xe95e258bb6615d47515Fc849f8542dA651f12bF6
• Launched on Base: November 2024
• Transferability Enabled: November 21, 2024
• Wrapper Contract (Ethereum): 0x9D03bb2092270648d7480049d0E58d2FcF0E5123

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Token Background

MORPHO is the governance token of the Morpho Protocol. It is used to vote on protocol upgrades and decisions via an onchain delegation system. Initially launched as a non-transferable token to support a more decentralized and equitable distribution model, transferability was enabled in November 2024 following a governance vote.

To support governance features and future cross-chain compatibility, MORPHO exists in a wrapped form. The original “legacy” token remains 1:1 convertible via a wrapper contract. All MORPHO on Base is already in its wrapped, transferable form.

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Integration with Moonwell

Moonwell and Morpho are deeply integrated. The Moonwell DAO currently owns and operates several Morpho Vaults across Base and OP Mainnet, including:

• Moonwell Flagship ETH, USDC, and EURC vaults on Base
• Moonwell Frontier cbBTC vault on Base
• A new Moonwell Flagship USDC Vault on OP Mainnet

These vaults are curated by B.Protocol and Block Analitica, with full frontend support inside the Moonwell app.

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Administrative Notes

This proposal also includes a minor change to support guardian role functionality for OP Mainnet deployment.

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Gauntlet Risk Parameter Recommendations

Initial Risk Parameters

Parameter	Value
Collateral Factor (CF)	65%
Supply Cap	1,000,000 MORPHO
Borrow Cap	500,000 MORPHO
Reserve Factor	30%
Protocol Seize Share	30%

Interest Rate Model

Parameter	Value
Base Rate	0%
Multiplier	23%
Jump Multiplier	5x
Kink	45%

Utilization vs Interest Rate Curve

Utilization	Borrow APR	Supply APR
0%	0%	0%
45% (Kink)	10.35%	3.26%
100%	285.35%	199.74%

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Supporting Data

Liquidity

Platform	Pair	TVL	24h Volume
Aerodrome Slipstream	MORPHO/WETH (0.3%)	$1.83M	$270K
Uniswap V3 (Base)	MORPHO/WETH (0.3%)	$291K	$101K
Uniswap V3 (Base)	MORPHO/USDC (1%)	$103K	$2.4K

• Total DEX TVL (Base): ~$2.2M
• Liquidity is concentrated in WETH pairs
• A ~$1.5M sell would currently result in ~25–30% slippage
• 30-day Annualized Volatility: 183%

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Voting Options

• Aye: Approve the proposal to activate a MORPHO market on Moonwell (Base) using Gauntlet’s recommended initial risk parameters
• Nay: Reject the proposal
• Abstain: Abstain from voting