# Add MORPHO market to Moonwell on Base **URL:** \ **Category:** Community Proposal\ **Created:** [February 26, 2025, 7:47pm UTC](https://forum.moonwell.fi/t/add-morpho-market-to-moonwell-on-base/1602 "2025-02-26T19:47:23Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![0xMims](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/0xmims/32/1899_2.png) [@0xMims](https://forum.moonwell.fi/u/0xMims)\ **Post date:** [February 26, 2025, 7:47pm UTC](https://forum.moonwell.fi/t/add-morpho-market-to-moonwell-on-base/1602/1 "2025-02-26T19:47:23Z")
I am pleased to propose the addition of MORPHO, the governance token of[Morpho](https://morpho.org/), to Moonwell’s suite of core lending markets on[Base](http://base.org). 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](https://basescan.org/token/0xbaa5cc21fd487b8fcc2f632f3f4e8d37262a0842) ## Resources and Socials - [Morpho Website](https://app.morpho.org/ethereum/earn) - [Token Documentation](https://docs.morpho.org/governance/morpho-token/overview/) - [Morpho Twitter](https://x.com/MorphoLabs) - [Morpho Governance Forum](https://forum.morpho.org/) Morpho Social Channels Metrics - Twitter: 60k followers ## Market Risk Assessment ![](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/2/26dd654525e8743b1047075438c715554a4de863.png) 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](https://basescan.org/token/0xbaa5cc21fd487b8fcc2f632f3f4e8d37262a0842#balances) - Token Contract: [0xBAa5CC21fd487B8Fcc2F632f3F4E8D37262a0842](https://basescan.org/token/0xbaa5cc21fd487b8fcc2f632f3f4e8d37262a0842) - Privileged Roles in Token Contract: The Morpho token does not have role-based p 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](https://github.com/morpho-org) - 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](https://docs.morpho.org/morpho/concepts/security/audits/). The 2 ongoing bug bounties for Morpho may be found [here](https://docs.morpho.org/morpho/concepts/security/bug-bounty/). - 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](https://docs.morpho.org/governance/morpho-token/overview/#:~:text=MORPHO%20is%20the%20Morpho%20Protocol's,tokens%20held%20determines%20voting%20power.) ## Oracle Assessment - Oracle Price Feed Addresses: - MORPHO-USD, Base Feed address: 0xe95e258bb6615d47515Fc849f8542dA651f12bF6 ## Proposal Author Information - Name: 0xMims - [Telegram](https://t.me/Mims0x): Mims0x - [LinkedIn](https://www.linkedin.com/in/darren-mims-2ab421206) - [Twitter](https://x.com/0xMims): 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. ---
**Author:** ![coolhorsegirl](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/coolhorsegirl/32/1854_2.png) [@coolhorsegirl](https://forum.moonwell.fi/u/coolhorsegirl)\ **Post date:** [March 4, 2025, 1:38am UTC](https://forum.moonwell.fi/t/add-morpho-market-to-moonwell-on-base/1602/2 "2025-03-04T01:38:23Z")
Would love to see MORPHO be a part of Moonwell’s core lending markets on Base! Super excited to see a partner further integrated. ---
**Author:** ![DipBlue](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/dipblue/32/2719_2.png) [@DipBlue](https://forum.moonwell.fi/u/DipBlue)\ **Post date:** [March 6, 2025, 4:48pm UTC](https://forum.moonwell.fi/t/add-morpho-market-to-moonwell-on-base/1602/3 "2025-03-06T16:48:32Z")
Adding morpho to the moonwell market would be indeed a great match and win for the protocol. There is a lot of synergy between the two protocols ---
**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/gauntlet/32/780_2.png) [@Gauntlet](https://forum.moonwell.fi/u/Gauntlet)\ **Post date:** [March 25, 2025, 5:37pm UTC](https://forum.moonwell.fi/t/add-morpho-market-to-moonwell-on-base/1602/4 "2025-03-25T17:37:33Z")
# [Gauntlet] - MORPHO Recommendations # Summary Gauntlet **recommends** onboarding MORPHO as collateral in Moonwell’s Core lending markets on Base. This decision follows a comprehensive evaluation of key risk factors, including liquidity, market depth, volatility, and overall asset suitability within the protocol’s risk framework. We recommend setting a conservative Collateral Factor (CF) of 65%, and a Supply Cap aligned with slippage tolerance in the 25–30% range. The combination of a conservative CF and a relatively aggressive supply cap strikes a balance between risk mitigation and capital efficiency. ## Risk Parameter Recommendations | Parameters | Values | | --- | --- | | CF | 65% | | Supply Cap | 1M MORPHO | | Borrow Cap | 500K MORPHO | | Protocol Seize Share | 30% | ## IR Recommendations | IR Parameters | Recommended | | --- | --- | | Base | 0 | | Kink | 0.45 | | Multiplier | 0.23 | | Jump Multiplier | 5 | | Reserve Factor | 0.3 | ## Supporting Data ### DEX TVL | pool\_name | pool\_type | pool\_url | pool\_tvl\_usd | volume\_24h\_usd | | --- | --- | --- | --- | --- | | MORPHO / WETH 0.3% | aerodrome-slipstream | [Link](https://www.geckoterminal.com/base/pools/0xb5f0b4ae66c14f7efaa9aa1468e8fc536a3e288c) | $1.83M | $270.37K | | MORPHO / WETH 0.3% | uniswap-v3-base | [Link](https://www.geckoterminal.com/base/pools/0x2f42df4af5312b492e9d7f7b2110d9c7bf2d9e4f) | $290.88K | $101.25K | | MORPHO / USDC 1% | uniswap-v3-base | [Link](https://www.geckoterminal.com/base/pools/0x2043b296ffc6b2d3bf4a3f3167d2afb3b0fbdbee) | $103.38K | $2.44K | The total DEX TVL for MORPHO on Base is currently around $2M, with the majority of liquidity concentrated in the MORPHO \<\> WETH pool. A concentrated MORPHO \<\> WETH liquidity structure means MORPHO’s price stability is heavily dependent on WETH liquidity. The overall liquidity remains relatively shallow. However, it is important to recognize that MORPHO is primarily a governance token within the Morpho ecosystem. Governance tokens often exhibit lower liquidity. ![Screenshot 2025-03-20 at 9.02.20 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/1/1841ded4cb6e1eacb1dab907fc3e87ad0ec715af.png) If adoption and incentives continue to expand, the liquidity constraints may gradually ease, making it a stronger candidate for increased collateral utility in the future. **Protocol TVL & Token Liquidity** ![Screenshot 2025-03-20 at 9.06.08 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/5/5e9db959ba58c3ab9578006577c97e1de010f2c8.png) Given all relevant factors, taking a cautious approach by a conservative Collateral Factor is advisable to minimize risks associated with potential liquidations in low-liquidity environments. ### Liquidity & Slippage **5% Slippage** ![Screenshot 2025-03-19 at 9.39.46 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/b/b721f7a5a4e25f19f686dece8e94c1d4751ecfcc.png) **10% Slippage** ![Screenshot 2025-03-19 at 9.40.09 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/a/ac82a8e9fe3f210b93a10fab9b674b132e726cf2.png) **25-30% Slippage** Executing a ~$1.5M MORPHO sell order in the current market conditions would result in an estimated 25-30% slippage. ![Screenshot 2025-03-21 at 8.33.40 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/2/227de2ca9f3eb0701c63f02e01fbd782bb597232.jpeg) ### Price Volatility Over the past 180 days, MORPHO’s annualized daily log returns have fluctuated between a high of +36% and a low of -23%, reflecting the asset’s sensitivity to both upward momentum and downside corrections. The 30-day annualized log volatility is currently 183%, highlighting MORPHO’s exposure to substantial price swings over short time horizons. ![Screenshot 2025-03-20 at 8.00.08 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/5/5e5877e213c4e31dff42e18309c88dd6489cf9d8.png) ![Screenshot 2025-03-20 at 8.00.19 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/c/c8e20ea55cbac5d2d4eb07dde5056e13c7a81f7e.png) ## IR Parameter Specifications **IR Curves** ![Screenshot 2025-03-04 at 1.07.04 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/a/a75bee559fbbe8a4c0c23b59810a7fe7ddad259d.png) | Utilization | Borrow APR | Supply APR | | --- | --- | --- | | 0 | 0 | 0 | | kink | 10.35% | 3.26% | | 100 | 285.35% | 199.74% | We recommend an IR curve with a borrow APR of 10.35% at kink.