This proposal misses what the incremental ETH buyers (TradFi) actually want, while creating infighting among Ethereum’s long-term supporters (DeFi). It’s not clear to me who it’s supposed to serve. TradFi wants: - Yield: even inflationary yield. ETF issuers are increasingly excited about passing staking yield to holders - Revenue: Ethereum needs a clear line of sight to sustainable monetization - The real issue: incremental users/liquidity have been going to Base and Robinhood Chain, not mainnet. Better to focus on growth (driving mainnet onboarding and usage, or monetizing L2s) than on austerity DeFi cares about: - Native ETH yield, which makes up a real chunk of some app revenues. Killing it overnight alienates builders and long-term supporters - Credible neutrality: OGs are ideologues on this, and issuance being changeable by a few individuals undermines it

Levered carry on private credit is the largest borrow use case on Morpho outside prime markets. For instance, @3f_xyz's 6.5x leverage vault on @FalconXGlobal's @paretocredit vault has been yielding ~20% APY. Leverage is drawn from the wFalconX market on Morpho, which has become a top 20 collateral on Ethereum in less than 2 months

Hot take: Tokenized asset issuers shouldn't bake liquidity sleeves into the asset. It just erodes native yield and makes the asset less attractive. If the underwriting is sound and the risk/reward is compelling, liquidity will form around the asset on its own. Let composability do the work.

Personally find this view of the 10x @centrifuge $JAAA carry trade on @3f_xyz incredibly satisfying Daily fund NAV updates pushing performance up against real-time borrow cost charged on @Morpho - the result is a jagged mountain range of live carry, drawn block by block RWAs are hard to integrate in DeFi, but composability is here, happening before our eyes Thank you to the private beta participants of 3F so far

In illiquid markets like RWAs, the borrower’s discipline is your downside protection. For the first time, Morpho lenders and curators can be more discerning about their borrowers through 3F’s permissioned, programmatic borrow markets