The Seamless protocol has grown from its origins into a dynamic ecosystem centered on borrowing, leverage, and accessibility. This proposal outlines a pivotal shift: migrating liquidity from the legacy platform to Morpho Vaults. This move optimizes borrower value and supports community expansion, aligning with Seamless’s vision of a streamlined, ‘platformless’ future.
Benefits of Migrating to Morpho Vaults
Morpho Vaults provide a permissionless, efficient platform that unlocks significant advantages for borrowers. Key benefits include:
Significant Liquidity Growth: Morpho Vaults (supporting assets like USDC, sBTC, and WETH) have achieved $70M in Total Value Locked (TVL) within the past month, dwarfing the legacy platform’s $15M.
Improved Borrower Access: With no permission barriers, Morpho enables broader participation, empowering more users to tap into borrowing opportunities.
Cost Efficiency: Unlike the legacy platform, Morpho eliminates third-party service fees and resource-heavy overhead, making borrowing more affordable.
Support for Innovation: Morpho paves the way for cutting-edge products, such as Leverage Tokens outlined in the 2025 Product Roadmap, offering borrowers greater flexibility.
Challenges of the Legacy Platform
The legacy Seamless platform, originally built on an AAVE V3 fork, fueled early success but now poses obstacles to progress. Its limitations include:
High Fixed Costs: Monthly maintenance expenses of $29.8K USD (totaling $443.7K annually) burden core contributors and drain resources.
Resource Demands: Engineering focus is consumed by upkeep rather than innovation, stalling development of new features.
User Impact: These inefficiencies limit user yield opportunities and impose tighter borrow limits, reducing the platform’s competitiveness and appeal.
Sunsetting the legacy platform is a critical step to remove these constraints and refocus efforts on Morpho Vaults.
I propose a community vote to migrate liquidity from the legacy platform to Morpho Vaults and, over the next 2-3 months, sunset the legacy platform and ILM v1.0. This aligns with the protocol’s roadmap, freeing resources to prioritize a near-term launch of Leverage Tokens and realize the community’s vision. Here is the suggested plan:
Snapshot Vote: Gauge community support for this migration plan, authorizing subsequent on-chain votes without additional discussion periods.
Phased Sunset: Over 2-3 months, pause deposits, phase out rewards, and guide users to Morpho Vaults (for legacy liquidity) and Leverage Tokens (for ILM v1.0 users).
Migration Bonus for ILM v1.0 Users: Since Leverage Tokens are not yet available but on the near-term horizon in the coming month or so, I suggest offering a migration bonus (potentially an airdrop) for loyal ILM v1.0 users who redeposit into Morpho Vaults until Leverage Tokens launch. The DAO can determine the details through discussion or a future vote.
Consideration for Legacy Users: Morpho Vaults have excellent rewards and serve as a direct alternative for legacy platform users.
Goals and Objectives
Resource Consolidation: Redirect engineering efforts and SEAM rewards to the protocol’s core mission of borrowing and leverage, emphasized by Leverage Tokens launching this/next quarter.
Maximize DAO Value: Simplify operations, reduce fixed costs (e.g., third-party provider fees), and improve community outcomes.
Ensure a Smooth Transition: Reward loyal users, especially ILM v1.0 users impacted by the sunset, through suitable incentives and clear communication.
Proposal Details
Here is a rough (draft) timeline for the migration and sunset process, spanning approximately ~3 months beginning mid-March 2025:
Legacy Liquidity: Users will see UI banners encouraging withdrawal and redeposit into Morpho vaults (with a clickable link provided).
ILM v1.0 Users: With Leverage Tokens (ILM v2.0) not yet live, I propose a migration bonus, such as an airdrop, for users who redeposit into Morpho vaults within 1 month of the proposal, should it be approved, with a random snapshot to be taken by DAO to inform rewards, until v2.0 is available. The DAO will refine these specifics through discussion or a future vote.
This timeline is flexible, aligning with approximate dates while offering users a clear transition path.
Technical Details
Smart Contract & Backend Actions
GOVERNANCE: Prevent new deposits via setReserveFreeze(asset, true); allow withdrawals.
GUARDIAN: Stop on-chain rewards with setEmissionPerSecond(asset, 0).
GOVERNANCE: Disable reward emissions using Aave’s RewardsController; later vote to clawback surplus SEAM rewards.
What Do You Think?
This vote concerns migrating liquidity to Morpho Vaults and sunsetting the legacy platform and ILM v1.0, a deliberate move to consolidate resources, lower costs, and set the upcoming launch of Leverage Tokens (ILM v2.0) for success. I encourage the community to discuss and refine the above proposal and weigh in with your thoughts. I value all feedback, so let’s make this a joint effort from the community. Please share your suggestions or concerns below.
My name’s 0xJibby. I lead growth for Gauntlet’s Morpho vaults. On behalf of Gauntlet, I want to say we’re excited to express our support for the proposal to migrate liquidity to Seamless’s Morpho Vaults. We believe this strategy sets a positive foundation for Seamless’s future, allowing their core team to focus on scaling more resources towards new innovative products (such as Leverage Tokens) while Gauntlet supports their lending infrastructure via Seamless’s Morpho vaults.
We look forward to seeing the community’s continued progress and stand ready to collaborate further in realizing these improvements.
Let’s work together to unlock the full potential of Seamless Protocol!
Thanks for the well thought out and written proposal as usual @Ras
One thing I would like to note/highlight: the fixed costs currently are borne by core contributors - as the project has been bootstrapped from the very beginning to align the ethos of fair launch (no investors, ~60%+ of tokens were given verifiably onchain to DAO control via onchain smart contracts).
As such, I’d like to emphasize the cost-saving nature of the proposal as well, in addition to the excitedment and alignment of a composable infra layer from Morpho that allows Seamless to move even quicker in tackling product roadmap milestones focused on Leverage Tokens.
This looks like a great idea- thanks for outlining a thorough thought process behind the proposal @Ras !
I fully support this movement to hone in resources and focus for the future. The Morpho Vaults have had a lot of early success, so I’d be curious how much more successful it can become by consolidating liquidity from the legacy platform into the Morpho backend. The transition plan looks good to me - it seems to provide adequate time for migration, and I expect most of the capital to be willing to move given the rewards on Morpho.
I am also excited for the launch of Leverage Tokens, and it looks like this migration would help set up a clean and successful launch of those. The Product Roadmap has many new things cooking, so thanks for this proposal to consider what’s the best approach for handling the legacy items.
Hi Seamless community, my name is Alexandra, part of the growth team at Morpho Labs. We are very excited about the potential use case of Seamless!
After growing Seamless flagship vaults to +$70M in TVL, which directly translates to an additional source of revenue from the vaults’ performance fees, transitioning fully to Morpho Stack seems like a logical step.
Fully migrating from Aave v3 fork to building on Morpho has the following advantages:
Seamless inherits an efficient, flexible, and immutable lending infrastructure saving development time and maintenece overhead
Seamless can access $700m+ and growing liquidity on Based Morpho, as well as future multichain liquidity to compliment Seamless’ offerings
Seamless benefits from order flows coming from 100+ projects building on top of Morpho, including Coinbase, Moonwell, Compound, Spark and more
I am looking forward to seeing how tighter collaboration with Morpho and Gauntlet could unlock new use cases for Seamless!
This is the the only correct decision at the moment. We need to abandon initiatives that are slowing us and we need to focus on initiatives that are bringing results. Seamless should develop of top of Morpho in future and Morpho is proven robust infrastructure. Legacy platform takes a lot of time from core contributors. Sunsetting will allow core team to focus on the things that matter.
I strongly support this proposal to migrate Seamless Protocol’s lending markets to Morpho. This will reduce operational costs, enhance Seamless community contributor focus, and overall help Seamless achieve its vision/mission to enhance borrowing experiences for users.
Any migration always has hiccups, but continuing to sink time into legacy platforms and support when strategic objectives are elsewhere is naive and inefficient. I’m supportive of this shift and it seems very thought through. Thanks @Ras for spearheading – exciting things ahead for Seamless no doubt!
I’m really excited about this proposal. Transitioning liquidity to Morpho Vaults is a smart move. This shift not only enhances user accessibility but also consolidates our resources to focus on what truly matters delivering superior borrowing experiences for the community. Count me in as a supporter!
+1 on this proposal for leveraging Morpho Vaults, and sunsetting the legacy platform. As mentioned by earlier replies, there are many benefits (focusing resources on strategic objectives, access to deep liquidity on Morpho for future products, etc.). I think the timeline also makes sense wrt the 2025 roadmap.
Thanks @Ras - this proposal feels like a chance for Seamless to shed its old skin and step boldly into a borrower-centric future. Like a snake, but with legs.. ? I love the idea of consolidating resources, slashing costs, and doubling down on innovation. My vote leans toward ‘yes,’ but I’d urge the team to weave in some of these considerations: honor the legacy crowd, stress-test the timeline, hedge against Morpho risks, and make the migration a celebration, not just a chore.
Excited to see what everyone else things, rn it’s looking pretty bullish all things considered. Thanks for sparking this, Ras. It’s a joint effort worth getting right.
Big thanks everyone for your support. @bytheseashore totally agree with you, I believe the team will do its utmost to proceed with execution with full transparency and efficiency.
As the draft received overwhelming support I will repost it in accordance with the governance rules and a 2 days cool down period starts.
If during this period no major disagreements are expressed, the draft will be moved to a vote on Friday, 21 March.
[GP-9] Maximizing Borrower Value: Why the Move to Morpho Matters
Abstract
The Seamless protocol has grown from its origins into a dynamic ecosystem centered on borrowing, leverage, and accessibility. This proposal outlines a pivotal shift: migrating liquidity from the legacy platform to Morpho Vaults. This move optimizes borrower value and supports community expansion, aligning with Seamless’s vision of a streamlined, ‘platformless’ future.
Benefits of Migrating to Morpho Vaults
Morpho Vaults provide a permissionless, efficient platform that unlocks significant advantages for borrowers. Key benefits include:
Significant Liquidity Growth: Morpho Vaults (supporting assets like USDC, sBTC, and WETH) have achieved $70M in Total Value Locked (TVL) within the past month, dwarfing the legacy platform’s $15M.
Improved Borrower Access: With no permission barriers, Morpho enables broader participation, empowering more users to tap into borrowing opportunities.
Cost Efficiency: Unlike the legacy platform, Morpho eliminates third-party service fees and resource-heavy overhead, making borrowing more affordable.
Support for Innovation: Morpho paves the way for cutting-edge products, such as Leverage Tokens outlined in the 2025 Product Roadmap, offering borrowers greater flexibility.
Challenges of the Legacy Platform
The legacy Seamless platform, originally built on an AAVE V3 fork, fueled early success but now poses obstacles to progress. Its limitations include:
High Fixed Costs: Monthly maintenance expenses of $29.8K USD (totaling $443.7K annually) burden core contributors and drain resources.
Resource Demands: Engineering focus is consumed by upkeep rather than innovation, stalling development of new features.
User Impact: These inefficiencies limit user yield opportunities and impose tighter borrow limits, reducing the platform’s competitiveness and appeal.
Sunsetting the legacy platform is a critical step to remove these constraints and refocus efforts on Morpho Vaults.
I propose a community vote to migrate liquidity from the legacy platform to Morpho Vaults and, over the next 2-3 months, sunset the legacy platform and ILM v1.0. This aligns with the protocol’s roadmap, freeing resources to prioritize a near-term launch of Leverage Tokens and realize the community’s vision. Here is the suggested plan:
Snapshot Vote: Gauge community support for this migration plan, authorizing subsequent on-chain votes without additional discussion periods.
Phased Sunset: Over 2-3 months, pause deposits, phase out rewards, and guide users to Morpho Vaults (for legacy liquidity) and Leverage Tokens (for ILM v1.0 users).
Migration Bonus for ILM v1.0 Users: Since Leverage Tokens are not yet available but on the near-term horizon in the coming month or so, I suggest offering a migration bonus (potentially an airdrop) for loyal ILM v1.0 users who redeposit into Morpho Vaults until Leverage Tokens launch. The DAO can determine the details through discussion or a future vote.
Consideration for Legacy Users: Morpho Vaults have excellent rewards and serve as a direct alternative for legacy platform users.
Goals and Objectives
Resource Consolidation: Redirect engineering efforts and SEAM rewards to the protocol’s core mission of borrowing and leverage, emphasized by Leverage Tokens launching this/next quarter.
Maximize DAO Value: Simplify operations, reduce fixed costs (e.g., third-party provider fees), and improve community outcomes.
Ensure a Smooth Transition: Reward loyal users, especially ILM v1.0 users impacted by the sunset, through suitable incentives and clear communication.
Proposal Details
Here is a rough (draft) timeline for the migration and sunset process, spanning approximately ~3 months beginning mid-March 2025:
Legacy Liquidity: Users will see UI banners encouraging withdrawal and redeposit into Morpho vaults (with a clickable link provided).
ILM v1.0 Users: With Leverage Tokens (ILM v2.0) not yet live, I propose a migration bonus, such as an airdrop, for users who redeposit into Morpho vaults within 1 month of the proposal, should it be approved, with a random snapshot to be taken by DAO to inform rewards, until v2.0 is available. The DAO will refine these specifics through discussion or a future vote.
This timeline is flexible, aligning with approximate dates while offering users a clear transition path.
Technical Details
Smart Contract & Backend Actions
GOVERNANCE: Prevent new deposits via setReserveFreeze(asset, true); allow withdrawals.
GUARDIAN: Stop on-chain rewards with setEmissionPerSecond(asset, 0).
GOVERNANCE: Disable reward emissions using Aave’s RewardsController; later vote to clawback surplus SEAM rewards.
