VIP 14: Morpho Venue Onboarding

Motivation

In onboarding venues for the early Volt Protocol, our goal is to offer a menu of choices for market governance that have competitive yields and high security standards.

Morpho represents a strict improvement from an economic point of view compared to lending pools like Compound v2. Lenders will always earn at least the Compound yield, if not more with peer to peer matching, and will receive MORPHO tokens on top. These tokens are initially nontransferable.

Detail

All Volt venue integrations must go through an extensive review process, including a comprehensive audit of the venue codebase and deployment by Volt Protocol engineers, and economic analysis of risk factors.

See here for my notes on the Morpho whitepaper.

I had the opportunity to speak with the Morpho team and ask questions, and was impressed by their level of diligence and technical sophistication. I believe their security posture is at least as strong, if not more rigorous, than that of the current Compound protocol.

Audit logs and other details will be added to this thread as the integration proceeds, both our review of Morpho and external audits of the integration code.

Morpho venue onboarding is being finalized as VIP-14. We expect PCV deployment in Morpho can occur next Friday October 21 pending final security review.

Per comments from @Eswak, we are making a tweak to the events emitted by the PCV deposit when it accrues yield. After this change passes review, VIP-14 will be submitted to the Governor Timelock next Tuesday October 25.

See the pull request here.

The community call with Morpho is available here.

The Volt Protocol security review and integration report on Morpho is now available on Github. We encourage all Volt holders to take a look. Overall, we feel very good about the security of Morpho-Compound based on both the extensive audits performed by professional audit firms, the security posture and engineering talent of the Morpho team, and the review performed by the Volt Protocol team.

Readers may also be interested to review our security report of the underlying Compound v2 market if they have not yet done so.

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VIP-14 has been submitted to the Governor Timelock and will go live tomorrow.

Volt Protocol is now live on Morpho! Ethereum Transaction Hash (Txhash) Details | Etherscan

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