Moonwell

I am pleased to propose the addition of MORPHO, the governance token of Morpho, to Moonwell’s suite of core lending markets on Base. The Base ecosystem is host to some of the best protocols in the industry, and as such it is desirable to list the best Base native assets to capitalize on opportunities in the ecosystem. MORPHO is a decentralized asset specific to the Morpho protocol, differentiated through its permissionless isolated market creation offered by its risk management partners.

Listing MORPHO will enable users to participate in governance while utilizing the token for lending and borrowing within the Moonwell ecosystem. Its integration will strengthen liquidity, provide additional lending opportunities, and improve capital efficiency.

Benefits to the Moonwell Community:

1. Yield-Generating Asset: MORPHO holders can earn additional rewards by supplying the token to Moonwell’s lending markets, benefiting from optimized interest rates and capital-efficient lending mechanics.
2. Enhanced Liquidity: Listing MORPHO will diversify and strengthen Moonwell’s lending and borrowing markets, offering users more options for collateral, borrowing, and liquidity provision.
3. Non-Custodial & Decentralized: MORPHO operates on permissionless, upgradeable smart contracts, aligning with Moonwell’s focus on decentralization, transparency, and security.

Token: MORPHO

Resources and Socials

• Morpho Website
• Token Documentation
• Morpho Twitter
• Morpho Governance Forum

Morpho Social Channels Metrics

• Twitter: 60k followers

Market Risk Assessment

Market Metrics

• Market Cap: $416M
• Minimum/Maximum Market Cap (Last 6 months): $25M (November 25th, 2024) / $416M (February 24th, 2025)
• Circulating Supply (on Base): 224M MORPHO
• Maximum Supply: 1B MORPHO
• 30D Total Volume (CEX/DEX): $989M
• 24 Hour Trading Volume: $30M (21M on CEX, 8M on DEX)

Liquidity on Decentralized Exchanges:

• Uniswap V3 MORPHO/WETH (Ethereum) -2% Depth: $123,643
• Uniswap V3 MORPHO/WETH (Ethereum) -2% Depth: $28,683
• Uniswap V3 MORPHO/WETH (Base) -2% Depth: $415,720

Herfindahl Index:

The Herfindahl-Hirschman Index (HHI) measures token concentration among holders, with higher values indicating greater centralization. Currently, the HHI for this token on the Base network stands at .406, a level typically considered somewhat centralized. However, this can be reasonably attributed to the majority of the token’s supply being held within the Morpho DAO, morpho.eth address, and so in reality the HHI is likely lower.

Decentralization

• Top 10 Holders
• Token Contract: 0xBAa5CC21fd487B8Fcc2F632f3F4E8D37262a0842
• Privileged Roles in Token Contract: The Morpho token does not have role-based permission functions according to the token’s Github repository (Source)[https://github.com/morpho-org/morpho-token].
• Blacklist Functionality: The MORPHO token has no blacklist function.
• Token Standard: ERC20

Smart Contract Risks

• Codebase and onchain activity:

  • Github Repo
  • Total transactions: 1,172,361
  • Age of token in days: 98 days (on Base)

• Security Posture: Morpho has had extensive audits from parties like Cantina, Spearbit, and Open Zeppelin. A list of audits may be found here. The 2 ongoing bug bounties for Morpho may be found here.

• Upgradability: The Morpho token according to its github repository is upgradable, and can support onchain delegation. Furthermore, it also has a wrapper contract integrated to the migration of assets from the old MORPHO token. Morpho governance operates through a weighted voting system where MORPHO token holders and delegators vote on proposals, with voting power proportional to their token holdings. MORPHO token is upgradeable and can be modified through the governance process, and once passing the DAO multisig would need to upgrade in response. Source

Oracle Assessment

• Oracle Price Feed Addresses:
  • MORPHO-USD, Base Feed address: 0xe95e258bb6615d47515Fc849f8542dA651f12bF6

Proposal Author Information

• Name: 0xMims
• Telegram: Mims0x
• LinkedIn
• Twitter: 0xMims
• Delegate Address: 0x657D07095b082BB71ebD93F549f407A97f49094F
• Relationship with Token: I am a Moonwell community member and delegate. I bear no relationship with the MORPHO token on a personal or professional level.

Conclusion

In conclusion, the MORPHO token is an opportunity for Moonwell to double down on a proven partner, and capitalize on its growing capabilities.

I am opening this proposal to the community to review, discuss, and provide feedback on this proposal to ensure its success and alignment with our shared vision for a secure and decentralized onchain financial future.