Migrate USDC and USDT from Morpho Optimizers to Morpho Vaults

This is a follow-up to a previous proposal authored by DegenSensei.

Summary

Approve two new Morpho Vault strategies and authorize the Guardian to reallocate up to 100% of OUSD's USDC and USDT holdings from the current Morpho Aave Optimizer.

Background

Since late 2022, OUSD has been accumulating token rewards by allocating USDC and USDT to Morpho. The existing strategies deposited stablecoins into the original Morpho Optimizers, which generated a yield premium through peer-to-peer matching and otherwise passed the funds through to Compound and Aave. After launching Morpho Blue, the optimizers are slowly being deprecated. The primary mechanism for encouraging capital to migrate has been the shift of MORPHO incentives from the optimizers to Morpho Vaults. As a result, OUSD is earning fewer MORPHO rewards and is actually unable to allocate new funds since deposits have been paused.

Recommendation

OUSD currently holds 2,684,812 USDC and 1,867,153 USDT in its Morpho Optimizer Aave V2 strategy. This proposal would signal the DAO's approval for new Morpho Vault strategies and would authorize the Guardian (2 of 9 multi-sig) to fully migrate all current and future USDC and USDT deposits to Morpho by utilizing the following curated Vaults:

• 0xBEEF01735c132Ada46AA9aA4c54623cAA92A64CB
• 0xbEef047a543E45807105E51A8BBEFCc5950fcfBa

From DegenSensei:

I suggest we add the MetaMorpho vault to our whitelisted strategies and we move our funds to the MetaMorpho USDC vault that is curated by Steakhouse Finance. It takes moderate risk when it lends the funds to borrowers of assets with a lot of staying power, such as mainly wstETH and wBTC. These experience less volatility than the majority of the market and have a lot of liquidity available on DEXs making it easy to liquidate a position in case of emergency preventing bad debt.

There is currently $38,85M USDC supplied into the vault and the $2.68m Origin has supplied into Morpho Aave v2 would take it to $41.4M and bring the yield down from 7.93% to 7.41% which is still very lucrative for OUSD holders. Additionally, the value proposition here is that we want to continue accruing MORPHO rewards that we have previously done on Morpho Aave V2 before the conditions changed.

While there are many interesting vaults on the platform, this one provides a good balance between deep liquidity which means that we aren't the dominant LP in the pool, and supplying capital to reliable assets.

In addition, we should also consider whitelisting the Steakhouse USDT vault as a MetaMorpho strategy. Although we are not planning to move funds directly into this vault, having it among our whitelisted strategies for USDT provides us with additional flexibility. The USDT vault that is curated by Steakhouse Finance has a similar risk profile to the USDC one, which focuses on assets with high staying power and deep liquidity. This would position us well to continue earning MORPHO rewards from this strategy in the future. The inclusion of this strategy would broaden our scope for potential yield opportunities while maintaining solid risk management.