Delegate $MORPHO to Event Horizon For Passive Yield Generation & Vote Coordination

Summary

This proposal is a joint initiative with the intention of earning a yield on Origin’s idle $MORPHO while also ensuring Origin’s voting power is fully utilized within every Morpho proposal.

Abstract

A delegation of Origin Protocol’s MORPHO tokens to Event Horizon with the benefit of:

• Automated coordination of voting into Morpho DAO and direct access to the governance decision-making process for Origin community members.
• Yield on otherwise non-yield-bearing 911,000 $MORPHO holding.

Motivation

The current supply of MORPHO managed by the Origin DAO is oftentimes dormant in the voting process, and is entirely non-yield-bearing. Event Horizon addresses this through IDVs — a simple yet effective mechanism that simultaneously:

1. Automates Governance Coordination: IDVs automatically coordinate and make the delegation productive through agentic governance.

2. Emits Yield: IDVs unlock yield on traditionally idle, non-yield-bearing DAO assets in the form of a redistribution of Event Horizon’s revenue as detailed below.

Specification:

Event Horizon is a public-access, community-driven governance pool. Through Event Horizon, smaller retail users vote to decide how the jointly led pool votes on base DAO proposals. In this right, Event Horizon serves as a platform for otherwise unheard voters and an onboarding platform for new voters and governance participants. Event Horizon has been active in the ecosystem since December of 2023, securing partnerships with various DAOs, including Arbitrum, Compound, and Gitcoin. Learn More

Incentivized Delegation Vaults (IDVs): Through Event Horizon Incentivized Delegation Vaults (IDVs), any $MORPHO token holder may delegate their tokens to the Event Horizon community pool and begin earning reward emissions.

Community Pool: This community pool is governed by a swarm of ~250 AI agents, and growing, each bespoke to the preferences of a human actor. We encourage each of the Origin DAO members to join in the agentic governance structure by creating their own free-to-create, personal, agentic representative. All agent creation is free: https://EventHorizon.vote/proposals

Agent Creation Process: Please see discussion

4. Agent Utility: Once the agent is created, the agent will vote on all future proposals in proxy of the user / human creator. Users may interact with the agent in many ways, including to: learn about current proposals, understand existing delegate sentiment found through forum discussions, find suggested proposal improvements, and more. For every proposal, the Agent will provide the user with a detailed rationale explaining its decision.

Automates Governance Coordination:

Automation: Currently, the Origin MORPHO supply is largely dormant from governance, having participated in just 6 of the nearly 100 total proposals. This is largely due to a limitation in efficient coordination. Through Event Horizon, this voting pool would maintain 100% up in every Morpho proposal from the moment of delegation onward.

Community Inclusion: Should the Origin community members wish to be a part of the decision-making process for this pool of voting power, they would immediately be able to participate by creating a free voting agent on Event Horizon. As detailed above, once created and trained to the voter's preferences, the agent will then represent the Origin community member from then on out on each and every proposal to come.

Assurances Governance Coordination:

(optional) Oversight Committee: To ensure the pool doesn't deviate from the general consensus of the Origin community, a 5-member oversight committee comprised of Origin Protocol delegates, core team members, and/or DAO community members may be formed. This oversight committee maintains the right to push the pool into an abstain or non-voting position based upon a 3-of-5 alignment. This is an added guard rail which some, but not all, of our partner DAOs have elected for.

A sidenote on built-in Sybil Resistance: The path to sybil attacks is paved by absenteeism. The agentic swarm model has built-in sybil resistance. Once a good actor instantiates an agent, it votes every single time. As the agent count increases, the threshold for Sybil capture rises. Since transitioning to fully agentic voting, the voter turnout has already grown to ~250 and is rising as each new agent comes online. In the coming months, we expect to cross 1,000 with each agent further hardening the system against individual Sybil behavior. Much like proof-of-work, the model hardens with added good-faith participation. We encourage the Origin community to join this ecosystem. However, beyond natural resistance, Event Horizon also maintains the ability to freeze suspicious agents. Users may always claim an agent and petition for a freezing if they feel it is wrongful. In effect, the margin for Sybil is incredibly small given EH’s custody of the agents and Origin’s custody of the voting power.

Yield Emission:

IDVs function similarly to LP yield farms: IDVs allow users to contribute to a public delegation pool while also earning yield. Users maintain complete custody of their assets and are rewarded for delegating alone. Event Horizon never takes custody of users’ assets. Event Horizon tracks contributions and emits airdropped token rewards to participants weekly. Rewards are distributed pro rata based on each user’s dollar-valued delegation. For example, if 10 users each delegate $10, each receives 10% of the emission. Users stake tokens (or in this case delegate tokens) and receive airdropped rewards in return. At present, this represents Origin's only mode of garnering yield on these dormant MORPHO tokens.

Please see discussion for a table of estimated APR rates given various conditions.

Disbursement of yield: all yield emissions are airdropped to the delegating wallet. In this case that would be Origin’s MORPHO delegate wallet at 0xC1aa82499Da8d37383F1E6d95De417ecF7514e7C. Disbursement can be changed to any wallet, such as the multichain Guardian wallet, or another wallet chosen by the OGN DAO and/or core team.

Use of Earned Yield: Yield distributed by Event Horizon is currently distributed to delegators as OP on the Optimism blockchain. Unlike the OP Origin was awarded from the Optimism grants that had restrictions on its use, there are no restrictions on using this OP. With the extra yield generated for to Origin, here are several avenues for using the additional funds:

• Subsidizing Origin Protocol’s recurring expenses, such as infrastructure, audits, salaries, bug bounties, and monitoring platforms that might incur usage pricing
• Subsidizing initial DEX flywheel incentives for future AMOs
• Subsidizing requests for seed funding to new projects that integrate Origin YBAs
• Extending the Origin Protocol DAO runway
• Use OP to help jumpstart superOETHo
• Distribute to OGN/xOGN holders as a yield source to the DAO

Any unused OP can be delegated back to the Event Horizon for additional yield generation.

Reward Assets: As emissions are derived from Event Horizon’s protocol revenue streams, future emissions will likely expand to include: USDC, ARB, and other DAO assets. Distributed assets can always be converted into Origin's preferred token after distribution.

Possible Questions, Risks & Mitigation:

What happens if Origin or the Origin Community wishes to create a Morpho proposal?

Event Horizon will publish any Morpho proposals requested by the Origin team / DAO, allowing the delegation to remain as is. Alternatively, Origin may undelegate, publish the desired proposal into Morpho, and then redelegate while only missing a marginal sum of yield.

What happens if the agents vote in a way deemed unfavorable by Origin?

This is mitigated by the oversight committee, comprised of the same individuals currently managing the MORPHO holdings. Thus, there is no change to the bottom line control of voting. Further, it is important to note that each Origin community member is welcomed, and encouraged to create their own Event Horizon agent. In this right, the agents themselves increasingly align with the broader swath of the Origin community to further assure alignment. Though again, the Oversight Committee is a catch-all protection that Event Horizon has implemented with other DAOs. Notably, however, no oversight committee actions have ever been taken, as no DAO partner has ever been deemed necessary to use.

Is there smart contract risk?

Funds never leave the wallet that they are presently in, or a wallet controlled by the same parties currently controlling the funds. Rewards are airdropped and do not require contract interactions.

When delegating, would Origin lose the ability to use the MORPHO in DeFi?

No, Origin would still be able to deploy some or all of the MORPHO tokens as is currently possible. The portion of MORPHO that is deployed in DeFi positions and is precluded from governance abilities would simply not be factored into the yield calculation for the duration of time during which they were removed from the voting eligibility. As a future solution, Event Horizon is willing to work with the Origin team to create a yMORPHO (Yield-Bearing Morpho) asset. The yMORPHO would wrap base MORPHO tokens whereby the base morpho held in contract would remain delegated and earn governance yield, while the yMORPHO wrap could be deployed in DeFi vehicles. This would be an optional feature to be implemented in the future.