Reallocate USDC from Morpho Aave to new MetaMorpho Strategy

Summary

We currently have $2,683,084.08 USDC that is allocated to the Morpho Aave v2 which is having the MORPHO rewards deprecated on that platform and shifted to Morpho Blue. If we want to continue earning lucrative yields for OUSD we need to move our funds to a vault on MetaMorpho or another platform.

Background

We have had funds deposited in Morpho for a long time which has proven to be a reliable yield source for OUSD holders while we have been accruing additional MORPHO rewards as well. Considering the launch of Morpho Blue and MetaMorpho, the protocol has migrated the rewards from Morpho Aave to MetaMorpho instead which would mean that we wouldn't be earning any MORPHO rewards if our capital remained on Morpho Aave.

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 other 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.

The remaining $1.9m USDT can remain in Morpho Aave V2 as it will still be earning a decent yield from being exposed to AAVE until there is something more lucrative to reallocate it to that also stays within the parameters of this proposal.

This proposal was authored by DegenSensei *