Overview:
This proposal outlines the allocation and deployment of 15% of the 25% reserve allocation, amounting to $150,000, into various vaults on Morpho . The goal is to enhance earnings through yield generation, with a special emphasis on rewarding haberdashery holders. 50% of the rewards generated will be distributed to haberdashery holders as per the agreed structure.
Objective:
Utilize 15% of the Reserve:
15% of the total 25% reserve allocation, which equals $150,000, will be deployed into the highest yield-generating vaults on the Morpho protocolThe selection of vaults will be based on risk assessment, liquidity requirements, and estimated APY
Earn Yield through Vault Participation:
By deploying the funds into Morpho’s vaults, the goal is to earn sustainable, passive yield. Morpho offers a range of vaults with different risk profileand returns, including stablecoins and eth..
Reward Distribution to Haberdashery Holders:
A core part of the rewards generated will be directed towards haberdashery holders. As per the structure, 50% of all rewards will be allocated to haberdashery holders. This will incentivize further participation and investment in the ecosystem.
Investment Strategy:
65% in Moonwell Flagship USDC: current Net yield 14.11%( net yield net yield what borrowers are paying in the lent asset + rewards (in MORPHO and in WELL)
35% in Gauntlet WETH Core:net Apy 9.08%
Deployment Plan:
Initial Allocation: The full $150,000 will be deployed across 2 different vaults, ensuring adequate diversification.
Rebalancing: Vault allocation will be reviewed quarterly to ensure optimal returns, with funds redistributed if certain vaults outperform others or if the risk profile changes.
Monitoring & Performance Tracking:
Regular performance updates will be provided, with key metrics such as yield rates, vault performance, and overall portfolio growth shared with the community. A dedicated dashboard will allow for transparent monitoring of the investment.
Reward Distribution Model:
50% of Rewards to Haberdashery Holders:
50% of the Rewardsgenerated from the Morpho vaults will be distributed directly to haberdashery holders in proportion to their holdings. The distribution will follow the agreed-upon reward structure and occur on quarterly basis,
Remaining 50% for Further Reinvestment:
The remaining 50% of the rewards will be reinvested back into the reserve fund, further enhancing the total allocation for future deployments. This reinvestment will help ensure the sustainability of the program, with the potential to increase the value of the reserve over time.
Conclusion:
By deploying 15% of the reserve allocation into Morpho vaults, we aim to maximize yield generation while maintaining a prudent risk strategy. The rewards earned from this initiative will not only enhance the reserve but also provide substantial benefits to haberdashery holders, further fostering community engagement and participation.
The proposed approach ensures that the funds are actively working to generate sustainable returns while rewarding the ecosystem participants who contribute to the success of the project.
