I honestly don’t think “Morpho Collaboration” name is the best fit. The recent proposal wasn’t authorized by Morpho, and Compound is free to work with as many protocols as it wants. I suggest the “Yield Aggregation” name.
The DAO must implement safeguards if the community chooses the second option—shifting Compound’s positioning toward a Yield Aggregation like Beefy.
Each integration with a third-party protocol should be wrapped in a native Compound smart contracts. This ensures that users interact with Compound’s wrapper rather than directly with the integrated protocol’s contracts.
Why it’s important:
- Security: DAO retains control, allowing funds to be withdrawn from third-party protocol in case of black-swan events or any security breaches.
- Ownership: DAO can define its own fee structure without being dependent on vendor terms.
- Incentives: Users should be rewarded for engaging exclusively with Compound’s infrastructure, keeping value and attention within the ecosystem rather than diverting it to third-party protocols.