This proposal is intresting as it allows Compound to experiment with Morpho and later assess the results to determine if continuing is worthwhile. If Polygon matches the $1.5 million incentive, it provides a strong enough incentive to utilize the Polygon Network.
Regarding the downsides, we recognize that Morpho is a competitor in the lending market, and this proposal would strengthen their position while Compound could instead use the incentives to bootstrap its own markets. However, we believe it’s worth testing this approach and evaluating the outcomes.
What fee will Gauntlet charge if these vaults are successful? Will it be 50% of the performance fee? Also, when do you plan to activate the fee-splitter if the strategy proves successful?