Morpheus V2: Our evolution

We’re extremely happy to be able to announce our new plans moving forward.

Team expansion

Morpheus Swap is excited to announce that @Dotcom_CSO has been brought on as a strategic advisor.

Dotcom brings a wealth of knowledge in the areas of product design, marketing, task execution, and partnerships. He has previously advised for Ruler Protocol.

Over the past week, we have conducted a comprehensive review of our protocol in the areas of tokenomics, products, strategy, allocations/structure, and roadmap objectives.

The following changes have been implemented:

Tokenomics:

• $MORPH is now our emissions token. It’s emission rate is unchanged and it will continuously emit.
• $PILLS will be our governance token and will be the only token used to farm Neo Pools (allowing you to stake to receive platform revenue), as well as various other features in the future.
• $MORPH will be used to mint $PILLS through a burning swap. All $MORPH used to mint $PILLS will be burned directly.
• The ratio of $MORPH to $PILLS will begin at 1:1 for an initial period of 5 days. This ratio will increase by 0.30 every 30 days.

For example: If $PILLS minting was introduced around October 28th, the mint ratio would be at 1:1 until November 2nd, at which point it would increase to 1.30 $MORPH to mint 1.00 $PILLS. This ratio would remain at 1.30 to 1.0 until December 2nd, at which point it would increase to 1.6 $MORPH to 1.0 $PILLS.

The number of $MORPH emitted will be consistent and continuous, however, due to the increase in ratio, less $PILLS can be minted every 30 days.

$PILLS is one-way, meaning you cannot convert $PILLS back to $MORPH through the swap once minted. $PILLS will also be the only token with a pool-2 ($PILLS-$MIM). The only purpose of $MORPH as an emissions token will be to mint $PILLS.

We believe that this two-token model will provide much more actual value to the protocol as well as providing longevity, compared to the original plan to split our platform across different sites with a “second layer”.

We aim to honor our holders of the first 2 million $MORPH with the initial 1:1 swap period, and we encourage everyone to do so when it’s live!

Product:

• $MIM is now our primary stablecoin. $MORPH-$MIM will transition to $PILLS-$MIM during the introduction of $PILLS.
• $MORPH-$USDC has been reduced to a 75x multiplier and will be phased out this Friday, along with the other peripheral $MORPH LP farms.
• Farms and pools will be re-balanced to support deeper liquidity with a greater allocation of rewards.
• Deposit fees on all farms (other than $MORPH-$FTM/$MIM) and pools (besides $MORPH) will remain at 2% with the exception of $wFTM, which will be 1.5%.
• Upcoming product: In addition to LP-farms and single side pools, we are excited to announce our intention to launch a DEX. This is planned for mid-November. We will release additional details as we get closer to launch.

Strategy

Neo Pools allow you to stake $MORPH (now) and soon will switch to $PILLS. By staking your token into a Neo Pool, a depositor is farming another token or $MIM.

Currently, there are Neo Pools for $MIM, $wFTM, $SCREAM and $SPELL, which depositors are earning for staking their $MORPH.

Protocol Allocations

• The allocations for Neo Pools have been increased from 40% protocol revenue to 60% protocol revenue.
• The remaining 40% of protocol revenue is allocated as per the following: 20% to treasury, 15% to Team, and 5% to Team Reserve.

• $MORPH token allocations are the following: 90% to emissions for farms/pools, 6% to Team, 3% to Treasury, and 1% to Team Reserve.

It is our intention to fully decentralize Morpheus Swap. We envision Neo Pools to eventually receive 80–90% of protocol revenue, while Treasury retains the difference.

Token allocation is intended to remain unchanged.

Structure

We are excited to announce that we have formed a 2/3 multi-sig; signers include:

• 0xngmi — Co-Founder of DefiLlama
• Dotcom — Strategic Advisor
• Morpheus — Founder of Morpheus Swap and Core Developer

We have also increased our Timelock delay from 7 hours to 12 hours.

It is important to note, all LP/single pools are under MasterChef control. We do not have any access to user funds. The MasterChef is under Timelock control, which in turn is under multi-sig control. Our multi-sig requires 2/3 signatures to increase or decrease reward multipliers, as well as for any other owner functions.

All farms and pools are accessible via the MasterChef contract directly with their PID. Neo Pool contracts are accessible from the appropriate FTMscan links in the pool details.

Roadmap Objectives:

• $PILLS — end of October.
• DEX — middle of November.
• Additional revenue generating products — end of November through Summer, 2022.
• Governance — December.
• Complete decentralization — Summer 2022 or earlier.

Miscellaneous Information

Treasury has conducted three buy-backs totaling $75k worth of $MORPH.

The Treasury will create $MORPH-$MIM LP and continue to increase its position using allocated $MORPH and buy-backs to establish deep liquidity.

Improvements to the community Discord have been made. @Ruian has been appointed Community Manager. We’re planning to soon make our Telegram an announcements only channel, and we will switch everything to Discord. We have a great team of community moderators to support any questions or chat in general. Come join us on Discord!

That marks the conclusion of this article. As always, thank you for your support, and we can’t wait to unleash what the future holds in store for Morpheus Swap.