MIP-0033: Bridge USDz onto Base with a 1mn Borrow Limit and with Native Restaking

In this proposal, we document the opportunity to use the ZAI Direct Deposit Module to mint 1mn USDz and supply it to the borrow side of Morpho Blue on Base with a borrow cap of 1mn.

Brief about Base

Base is the new chain by the Coinbase team. It has recently shown a lot of potential and growth and positioned itself as the L2 with the most active user base.

Usage of Funds

With a 1mn debt limit, we can supply 900k into Morpho and allow users to borrow USDz to lever up on LP tokens specifically. We have found that there are multiple Aerodome LP pools and multiple DeFi tokens that we can support leveraging yields on.

The remaining 100k can be kept on a liquidation contract to execute liquidations on any bad loans from the protocol.

The listing of Aerodrome (AERO) on Coinbase further proves that building and contributing to the Base ecosystem will eventually allow us to get MAHA listed on Coinbase.