Day 1 of #7DaysofGrowth: MOR Yield Revenue Share Partnership with ApeSwap
On day 1 of our #7DaysofGrowth campaign, we are pleased to announce an official partnership with ApeSwap as a MOR Yield Revenue Share partner.
As we continue on the cross-chain expansion pathway, with a focus on growing our revenues and returning these to token holders, we are delighted to announce MOR Yield Revenue Sharing as a new business-to-business partnership.
ApeSwap has been an avid supporter of Growth DeFi since MOR’s launch in Q3 of 2021 by providing liquidity in their farms. Growth DeFi is also a top-40 BANANA holder. It uses only the yield earned from its BANANA Exponential Buyback Collector to buyback and burn GRO, Growth DeFi’s deflationary, revenue-yielding, governance token. So Growth DeFi’s balance of BANANA only ever grows as more is added. Adding ApeSwap as a MOR Yield partner was an obvious choice as we work to build tools to benefit not just users, but also other protocols. ApeSwap’s MOR Yield Revenue share payout will be included soon in our next DAO proposal for approval.
This article explains what MOR Yield is, illustrated through our partnership with Apeswap, and explains the excellent mutual benefits this will offer.
“As one of the first Decentralized Exchanges to have supported MOR’s meteoric rise, ApeSwap couldn’t be more excited to be working closely with Growth DeFi on their innovative Yield Profit Share program. We look forward to generating additional profits for the ApeSwap DAO through holding MOR in our treasury and incentivizing MOR liquidity on our platform!”
— Julian, ApeSwap, Director of Business Development
What is MOR?
MOR is Growth DeFi’s borrowing/leveraged yield farming platform on BSC, Avalanche, and — in a few days — Fantom. Users can stake yielding tokens, like stkTokens or yield farm LPs on MOR, mint MOR’s native stablecoin (also called MOR) with that collateral, and then use that MOR to buy anything else, including more LPs to stake with and mint more MOR with. MOR is an overcollateralized stablecoin and is a fork of DAI, but with the added benefits of being able to have yielding collaterals.
MOR on Avalanche currently also offers self-repaying loans, also known as negative interest rate loans in the traditional finance world. This means that your MOR debt owed decreases while you are still earning yield on your collateral.
What is ‘MOR Yield’ and what benefits does it offer?
MOR Yield is an easy way for GRO holders and other DeFi protocols to benefit from each other.
Let’s begin by framing a current problem and why MOR Yield is the solution.
Firstly, many large protocols typically hold large amounts of stablecoins in their respective treasuries for financial stability. However, these stablecoins don’t actually have any immediate earning power since they would essentially just sit in a protocol’s wallet. The likes of BUSD, USDC, USDT and DAI are not actually yielding any revenue when simply held in protocol Treasuries.
This is where MOR improves upon the typical idea of a stablecoin. Growth DeFi actually earns revenue from every MOR stablecoin token that exists due to profits generated from its own in-house yielding strategies. Therefore, we can opt to share a proportion of this revenue with Partners based on how much new MOR they bring into existence.
We have therefore created a revenue-sharing partnership arrangement called MOR Yield Revenue Share, which benefits both parties. Partners who swap other stablecoins into MOR, gives incentives to a pair that includes MOR, or who pair their own token with MOR in a farm, and therefore expand the amount of MOR in circulation will receive a percentage of revenues from MOR. The amount they receive will be proportionate to how much MOR they mint and hold relative to the total amount of MOR in existence.
This expands the overall amount of MOR — which is great for Growth DeFi! — and it means our Partners now hold a yield generating stablecoin in their treasuries. MOR Yield Revenue Sharing is especially useful for protocols during market downturns, since many protocols want to protect their capital by converting some of it to stablecoins to ride out the worst of the market. Now instead of just holding stablecoins waiting for an upturn in the market, protocols can hold stablecoins and earn while they do it.
It’s quite literally a win-win situation!
How is MOR profitable enough to share its revenue?
MOR is one of the most capital-efficient stablecoins, thanks to the borrowing and leveraged yield farming platform it’s built around. Thanks to using in-house yield strategies, MOR protocol doesn’t need to pay any fees to outside protocols, which increases our capital efficiency compared to other stablecoins that have no built-in sources of yield. The sources of MOR revenue include:
- Swap fees from the MOR PSM (Peg Stability Mechanism)
- Performance Fees
- Liquidation Penalties
- Borrow Fees
- Yield from PSM holdings
This setup makes MOR 2–3x more profitable than other major stablecoins, such as MIM and DAI.
MOR is a powerful vehicle for increasing ecosystem profits while also building our close partners such as ApeSwap. And it goes without saying that more MOR in circulation means more profits for GRO holders. We’re excited to continue to build our relationship with ApeSwap and start on a new journey together as they become official MOR partners.
For more information on MOR Yield Revenue Share, or how your protocol can participate, please inquire in our Telegram channel linked below.