Age3-Epoch3 gauges optimized distribution
Summary
Morpho Labs proposes its optimized distribution for the gauge vote of the 3rd Epoch of Age 3.
| Morpho-Aave | Morpho-Compound | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DAI | WETH | USDC | USDT | WBTC | stETH | CRV | DAI | COMP | WETH | UNI | USDC | USDT | WBTC | |
| Weight | 2.25% | 38.59% | 17.30% | 6.27% | 11.08% | 7.92% | 0.83% | 4.36% | 0.14% | 2.49% | 0.18% | 4.91% | 1.98% | 1.69% |
Context
The Age 3 rewards distribution is determined through the Morpho gauges. Before each epoch, $MORPHO holders are able to vote on the rewards distribution between markets of Morpho-Compound and Morpho-Aave. All the details about it are available in the associated forum post and the associated documentation section.
However, there are many unknowns, and there is no guarantee of the efficiency of the rewards distribution, especially for the first iterations of the gauges. That’s why Morpho Labs worked on an optimized distribution. Members of the core team are probably going to vote with this distribution, and anyone else without any particular opinion on the vote can follow this distribution.
Methodology
We applied the same methodology as the one from previous epochs.
Results
We present here the results for the 3rd Epoch of Age 3. The data to do the computations has been taken at block 16687395 (Feb 22, 2023).
Growth potential
Use case
Aggregation
We compute the weights of the different markets by taking the average of the “growth potential index” and the “use case index”.
See the summary for the values in detail.
The weights indicate the proportion of rewards allocated to each market. These are then distributed between suppliers and borrowers in proportion to their contribution to the market. Thus, the greater the volume of a market, the more diluted the rewards are. The following graph shows the number of rewards allocated to a market divided by the current volume (supply + borrow) of that market. This gives an idea of the number of rewards one would receive for one dollar lent or borrowed in that market if the volume remains constant. As previously, we compare with the current state.
