Proposal to Launch Moonwell Flagship USDC Vault on Optimism
Summary
Following the success of Moonwell Flagship and Frontier vaults on Base, which as of today hold more than $160M in total value locked (TVL) across ETH, USDC, EURC and cbBTC, we propose to expand our strategic footprint by launching a new Moonwell Flagship USDC Vault on Optimism (OP Mainnet). This initiative aims to attract USDC depositors, deepen network liquidity for this important stablecoin, and further establish Moonwell as a leading contributor in the Morpho ecosystem. By being the first to offer a fully integrated Morpho vault experience on Optimism—where the Morpho frontend is currently unavailable—we position ourselves to capture early market share and pave the way for future expansion across Superchain-aligned networks.
Introduction
Last summer, MIP-B21 kicked off Moonwell DAO’s collaboration with Block Analitica and B.Protocol, paving the way for the development of the Moonwell Flagship and Frontier series of Morpho vaults. Today, these vaults stand among the largest by TVL in the Base ecosystem, highlighting their strong adoption and significance.
Expanding upon this successful model, we propose launching a Flagship USDC Vault on Optimism, enabling efficient capital allocation for users seeking optimized, risk-adjusted yield strategies. This proposal aligns with the Morpho Everywhere expansion plan, which aims to establish Morpho infrastructure across multiple Ethereum L1 and L2 networks, including Optimism.
Importantly, while Morpho’s factory contracts have been deployed on Optimism, there is currently no official Morpho frontend available on the network. This presents an opportunity for Moonwell to establish a first-mover advantage by offering a best-in-class user experience for Morpho vault depositors and borrowers on Optimism.
Additionally, this could be the first of multiple vaults launched by Moonwell DAO and Block Analytica/B.Protocol on Superchain-aligned networks, supporting our broader vision of scaling Ethereum lending infrastructure across the Superchain.
Read more in the Moonwell x Morpho forum post: Morpho x Moonwell Strategy for Multichain Expansion - Governance - Morpho Governance Forum
Assignments and Proposed Markets
The new Moonwell Flagship USDC Vault on Optimism will follow the same structure as our existing Flagship and Frontier vaults:
- Owner: Moonwell DAO
- Curator: Block Analitica & B.Protocol
- Allocator: Block Analitica & B.Protocol
- Guardian: Moonwell Security Council
For more details on vault role assignments, refer to the Morpho Docs.
Pending community approval, here is our high-level roadmap for the launch:
- Onchain Moonwell Improvement Proposal vote to:
- Accept Moonwell DAO ownership of the USDC vault on Optimism.
- Set the vault roles as mentioned above.
- Accept Block Analitica and B.Protocol as risk curators to allocate USDC liquidity into selected Morpho markets on Optimism.
- Vault integration into the Moonwell app for seamless user experience and deposit accessibility.
- Go-to-market push in collaboration with Morpho to increase awareness and drive liquidity to the vaults.
Note on incentives:
The launch of this new vault does not imply a new WELL token grant for liquidity incentives, and it is unlikely that the Morpho DAO will allocate a portion of the existing WELL grant allocated for Flagship and Frontier vaults on Base (ETH, USDC, EURC, and cbBTC) to the newly launched USDC vault on Optimism. However, there may be opportunities to receive OP incentives through initiatives such as Season 7 Optimism Grants Council Grants, which focus on bolstering Superchain TVL.
Collateral Risk Assessments
To ensure risk mitigation and capital efficiency, Block Analitica will provide detailed risk assessments for the proposed markets, which will be shared as replies to this proposal.
Conclusion
We believe the Moonwell Flagship USDC Vault on Optimism will create robust opportunities for USDC holders to earn sustainable, risk-adjusted yield through optimized lending strategies. This expansion aligns with our broader mission of making onchain finance simple, secure, and accessible for all.
By being the first to offer a Morpho-integrated lending experience on Optimism, Moonwell has the potential to capture early market share and expand its influence across the Superchain. We eagerly await community feedback and look forward to expanding our vault offerings. Let us know your thoughts and questions below!