Day 7 of #7DaysofGrowth: MOR Expansion

On Day 7 of our #7DaysofGrowth campaign, we are excited to share with you details about the new infrastructure we are building to expand our user base to serve not just single users, but to also serve DAOs who need the token services that MOR has to offer.

On this final day of our campaign highlighting ways in which we are GROwing, we thought it fitting to focus on outlining our plans for MOR, setting out how it will target DAOs with a suite of services designed to increase greater amounts of MOR coming into circulation and generating enhanced revenues for veGRO.

MOR Protocol will become a platform where users and DAOs can access several services from the MOR dashboard. This new “suite” of MOR services will be combined with what is already offered:

  1. MOR Yield Revenue Share
  2. MOR Leverage
  3. MOR Options
  4. MOR Innovate

Currently on the MOR interface, users can view their dashboard, swap page, bonds, MOR staking, veGRO, and more. So let’s talk about what will be added to these and how these will benefit the Growth DeFi ecosystem and veGRO holders.

MOR Yield Revenue Share

1. What It Is

  • MOR Yield is a way for protocols to earn a yield simply by holding a stablecoin in its treasury or by pairing LPs with it.

As explained in an earlier announcement this week when ApeSwap became an official MOR Yield partner of Growth DeFi, MOR Yield is one of the easiest ways for a protocol to earn on their idle stablecoin assets or treasuries. MOR Yield enables protocols to be paid in $MOR for holding $MOR. Because MOR Protocol earns yield for each MOR that is minted, and is 2–3x more profitable than other stablecoins (such as DAI and MIM), due to profits generated from its own in-house yielding strategies. MOR Protocol is able to share that revenue we earn with the protocols who have helped us earn it. MOR isn’t just any stablecoin, it can become a very profitiable yielding stablecoin when held by treasuries or DAOs.

Many large DAO Treasuries will typically hold sizeable amounts of stablecoins 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 which results in poor capital efficiency.

2. How It Functions

After working out wallet details with us, MOR Yield partners hold MOR in their wallets or LPs. The Growth DeFi DAO will vote to allocate an agreed-upon and pre-determined portion of surplus funds to MOR Yield partners. This payout happens regularly.

3. How Does it Help veGRO Holders?

MOR Yield is a product aiming to increase the MOR supply in circulation. There is a correlation between the outstanding MOR supply and the distributions going to veGRO.

MOR Leverage

1. What It Is

  • MOR Leverage simplifies the user experience of using MOR Vaults by creating a product that always rebalances to target a certain leverage (collateralization ratio). It makes being in a leveraged yielding position easy to manage and use.

2. How It Functions

Leveraged Index Tokens (LITs) consist of a contract that has a vault open on MOR. It targets a fixed leverage ratio by rebalancing its position and thus creating a simple product for users.

Example:

There is a 2x LIT created for the FTM/USDC collateral that holds $1 Million in TVL, this means that the LIT contract has a MOR Vault open with $2 Million worth of FTM/USDC LP tokens as collateral and 1 Million MOR of debt (accomplishing a 2x leverage ratio). If FTM goes up then the price of FTM/USDC would go up thus driving the leverage ratio to go down, in order to rebalance the LIT would borrow more MOR, buy more FTM/USDC LP tokens with it and deposit them as collateral. If FTM goes up then the price of FTM/USDC would go down thus driving the leverage ratio to go up, in order to rebalance the LIT would withdraw FTM/USDC LP tokens from the vault, sell it for MOR and use the MOR to repay part of its debt. In both cases the leverage ratio is brought once more closer to 2x.

By using LITs users can get the performance of running a vault with that strategy without having to worry about liquidations and overall vault management.

There can be LITs with different leverage ratios (not always 2x).

3. How Does it Help veGRO Holders?

MOR Leverage with LITs would earn via performance fees, borrow fees, and swap fees that would add to the surplus. And LITs earn more in these fees than an individual who had to manually rebalance their own vault, because these vaults are constantly rebalancing with price fluctuations. For example, if the PSM (or Peg Stability Module) spread is 0.1%, then every time there’s a rebalancing event (borrowing more to leverage up or deleveraging) then that trickles in swap fees to the protocol because it’d route through the PSM. So if there’s $1M deposited in a 2x leveraged vault, then the protocol is earning performance fees on $2 Million worth of collateral + borrow fees (if any) for 1 Million MOR of debt, thus increasing the TVL of MOR’s vaults, and therefore, adds to MOR’s surplus.

MOR Options

1. What It Is

  • MOR Calls: Wanting to raise capital but don’t want to sell tokens at low prices? (Physically settled covered calls for DAOs)
  • MOR Puts: Want to do buybacks but get better prices? (Physically settled cash-secured puts)

An “option” is a type of derivative contract that gives its purchaser the right — but not the obligation — to buy or sell an underlying asset at a set price at (or, in some cases, before) an expiration date. The right to buy the underlying asset is known as a “call” option while the right to sell is known as a “put” option. Options are simply contracts that allow traders to speculate on the future price of an underlying asset and can be settled in crypto.

2. How It Functions

For calls, if a DAO or protocol wants to raise funds for development but they don’t want to sell their token at the current price, then one option they would have is to sell longer dated calls on some of their treasury’s token at higher strike prices than the market price. They would get some cash up front in the form of a premium which they can use to pay for some costs and if the option is exercised the DAO would be selling tokens at their desired strike price.

3. How Does it Benefit veGRO Holders?

A percentage of that premium can be kept as a platform fee and would go to veGRO holders. veGRO holders would benefit from growth in premium’s volume.

MOR Innovate

1. What It Is

  • MOR Innovate: Different custom products that don’t fit in any of the other categories. One example is cLQDR.

2. How It Functions

This aspect of MOR is completely up to whatever the protocol or DAO needs.

3. How Does it Help veGRO Holders?

Products created go to helping veGRO holders in some way, usually either by using fees to build the surplus, which then gets distributed to veGRO holders.

If you would like to know more about Growth DeFi’s most recent developments please read our other announcements during our #7DaysofGrowth:

Otherwise, for more information about Growth DeFi or MOR, please see our main website or MOR Protocol, visit our Linktree, or stop by our Telegram channel to chat with our team.

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