Proposal 18 – Update USP Holding Incentive Allocation with Alpha USDC Forex V2 Market on Morpho Integration

Summary

This proposal introduces a targeted incentive program for the Alpha USDC Forex V2 USP/USDC market on Morpho, funded by reallocating 10% of the existing USP Holding incentive.


Rationale

This proposal reallocates 10% of the existing USP Holding incentive budget to support the Alpha USDC Forex V2 USP/USDC market on Morpho, directing 7.5% of PIKU incentives to users who use USP as collateral to borrow USDC and 2.5% to users who supply USDC to the Morpho vault.

This structure promotes productive and capital-efficient usage of USP, balances borrow- and supply-side liquidity to ensure healthy market utilization, and strengthens USP’s role as a DeFi-native collateral asset.

By reallocating incentives rather than increasing emissions, the proposal enhances sustainable adoption and deepens USP’s integration into core lending infrastructure without expanding overall incentive spend.


Pre Proposal

Rate Campaign Type Distributed Everyday
80% USP Holding 54,757.01 PIKU
10% Uniswap USP/USDC Pool LPs 6,844.63 PIKU
5% Pendle LP USP 3,422.32 PIKU
5% Pendle YT USP 3,422.32 PIKU

Post Proposal

Rate Campaign Type Distributed Everyday
70% USP Holding 54,757.01 PIKU
10% Uniswap USP/USDC Pool LPs 6,844.63 PIKU
5% Pendle LP USP 3,422.32 PIKU
5% Pendle YT USP 3,422.32 PIKU
7.5% Borrow USDC on USP/USDC Alpha USDC Forex V2 Morpho Market 5,133.48 PIKU
2.5% Supply USDC to Alpha USDC Forex V2 Vault on Morpho 1,711.16 PIKU