The association is proposing to allocate 200,000 OP tokens from the latest Optimism grant round to incentivize stablecoin growth on Base. This initiative targets a $5M boost in TVL, unlocking further rewards while expanding access for all users.
Grant mechanics:
- The deployment is structured as: Phase 1—200,000 OP available now; Phase 2—300,000 OP released after hitting the $5M TVL milestone.
- All grant tokens are distributed directly to users—no development/private allocation.
- Focus is on vaults and lending markets using USDC, given its dominant liquidity and market demand on Base.
Why USDC?
- Largest stablecoin on Base, with strong daily activity and a clear growth curve.
- Major integrations—like Coinbase’s Bitcoin loan—are driving increased utility.
- USDC matches ecosystem goals for deep liquidity and cross-protocol interoperability.
Strategic impact:
- USDC incentives unlock new opportunities for both small and large lenders/borrowers.
- Base TVL expansion supports future OP ecosystem growth and more protocol integrations.
- Milestone-based: Once the TVL goal is met, further rewards proposals will activate.
Next Steps:
With DAO approval, incentive distributions will begin for all USDC vaults and lending pools. Progress will be monitored, with a follow-up proposal for Phase 2 after the first target is achieved.
Personal view:
Targeted OP rewards are a proven method to lift stablecoin adoption and overall lending volume on emerging chains. USDC on Base offers real market fit—these incentives could easily bring new capital and activity into the ecosystem.
Community question:
Are you lending or borrowing USDC on Base? How do OP rewards change your approach to DeFi yield? Share your strategies or feedback below—early TVL movers may be best placed for next-phase incentives!
@Morpho Labs 🦋 #Morpho $MORPHO
