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A New Interpretation of Morph in the L2 Siege: How Can Users and Developers Share the Benefits of Ecosystem Development?

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律动BlockBeats律动BlockBeats2024/05/22 03:55
By:律动BlockBeats

Imagine starting from scratch to build a large and thriving L2 ecosystem. How would you go about it?


Before 2023, public chains/L2s focused on on-chain use case innovations such as yield products, derivatives, and structured products. However, they were often criticized for the "ghost town effect," with most networks having very few users and liquidity. Over the past year, the L2 sector has started exploring new approaches. Blast, a disruptor in the L2 space, initiated a low-cost cold start and achieved billions of dollars in TVL through the anticipation of point-based airdrops.


But has the problem really been solved? Looking back, while the L2 sector has ended the "public chain ghost town" phenomenon, it seems to have entered a new dilemma of "false TVL prosperity." Old and new issues have become a balancing act.


In this context, Morph offers a "dual approach" solution: using testnet point airdrop incentives for a cold start and an ecosystem development fund specifically for developers/DApps. This approach aims to balance user/liquidity with ecosystem/consumer use cases, seeking to end both the "public chain ghost town" and "false TVL prosperity" extremes.


The "L2 Question" of Traffic or Ecosystem


The emergence of Blast in November 2023 was a breakthrough for the market's dissatisfaction with the Ethereum L2 sector. With just the anticipation of a clear airdrop, TVL surpassed $500 million in five days, overtaking star L2 projects like zkSync, Starknet, and Linea.


It's important to note that Blast had not yet launched its mainnet, nor did it have any DApps for users to experience. Despite this, TVL continued to break significant milestones, attracting up to $2 billion in a few months:


It ranked fourth among Ethereum L2s, just behind established giants like Arbitrum, Optimism, and the Coinbase-backed Base network, with an astonishing growth rate.



Blast also sparked a community-wide discussion about L2 liquidity and use cases. Its novel approach of "users and liquidity are everything" disrupted the traditional L2 growth model, suggesting a new path of achieving TVL first and applications later.


Essentially, Blast's "airdrop anticipation + social fission" strategy disrupted the old L2/public chain model that focused solely on technology/ecosystem, bringing it closer to the market and capturing users' "investment consumption" psychology, thereby replicating a marketing strategy similar to Pinduoduo in Web3.


This approach was a significant blow to traditional L2 growth strategies, achieving remarkable success in both dissemination and growth speed. However, marketing is ultimately just a means of initial user acquisition. The recent community controversies over Blast's point system and exit mechanism indicate that a good ecosystem and service experience are needed to retain users (rather than lock them in).


This also reflects a thought-provoking "L2 question": Should we, like established L2s such as Arbitrum and Optimism, attract users and funds by providing as many comprehensive and rich application scenarios as possible? Or should we follow Blast's approach, first attracting a massive influx of new users and funds, then drawing in projects and DApps for migration and development?

Both have their advantages and face their own new bottlenecks.


Morph's new solution suggests that market activities (such as point incentives) and services (prosperous on-chain use cases) are not mutually exclusive.


On the contrary, they can be effectively integrated. By using point airdrops and other incentives to attract users and funds initially, and simultaneously launching an ecosystem development fund (approximately 30% of the ecosystem, estimated to be worth hundreds of millions of dollars), incubators, and hackathons to build rich on-chain scenarios, especially consumer-level scenarios, Morph aims to accommodate the influx of users and liquidity:


1. For the community and users, Morph officially launched the Morph Holesky testnet on May 6, featuring enhanced performance and infrastructure that fully matches the upcoming mainnet's functionality and performance. This allows for a seamless transition in the future. Morph also introduced a corresponding point incentive activity to encourage users to interact actively and participate in early network liquidity and use case testing.


2. For ecosystem development, Morph continues to hold incubators, hackathons, and online/offline workshops and lectures for developers and DApps. These activities encourage and support various types of projects, such as AI and GameFi, to build on Morph. Morph also promises to launch an ecosystem fund specifically for developers/DApps to support long-term builders.


How Can Ordinary Users and Developers Participate?


So, from the perspectives of ordinary users and developers, what specific forms of participation are currently available?


For ordinary users, the main activity is the "Morph Zoo" first season event "The Genesis Jungle," launched on May 13. Users can earn Morph points through DApp interactions, check-in voting, and platform tasks, accumulating reference credentials for future token airdrops or other exclusive incentives.


For developers, there are more diverse options. Whether it's hackathons and incubator programs for different types of projects like AI, DeFi, GameFi, and Infrastructure, or various online and offline workshops and lectures around Web3 technology application scenarios, developers are encouraged to participate in the early construction of the Morph ecosystem. They can also share in the initial airdrop, full first-year sequencer fee profits returned quarterly, and other comprehensive support.


Ordinary Users: "Morph Zoo" First Season Event "The Genesis Jungle"


On May 13, Morph launched the "Morph Zoo" multi-phase plan specifically for community users, aiming to attract and reward participants in the Morph testnet and eventual mainnet. The first season event, "The Genesis Jungle," was also launched.



Every interaction by ecosystem participants will earn Morph points, representing their activity, participation, and contribution within the Morph ecosystem. The official documentation directly hints that "considering future airdrops and other exclusive rewards, Morph points will play an important role."


It is also important to note that Morph points are similar to soul-bound tokens, directly linked to the user's wallet and non-transferable. Currently, there are three main ways for users to earn Morph points in "The Genesis Jungle": Discovery Trail (DApp interactions), Voice of the Jungle (check-in voting), and Partners' Expedition (task platform).



1. Discovery Trail: DApp Interactions


According to the official statement, the Discovery Trail allows users to explore the DApp world provided by Morph and discover Morph point rewards during the experience. This essentially refers to a new round of DApp interaction processes on the Morph Holesky testnet.


Currently, there are four DApps available for interaction on the official website. In addition to the cross-chain bridge Morph Bridge, which community users are already familiar with, there are also the liquidity protocol BulbaSwap, the lending protocol Abra Finance, and the NFT trading market Morpha.NFT. The official website indicates that more types of DApps will be launched in the future.



Morph Bridge


The full interactive experience of these 4 DApps is also very smooth. First, as with the previous testnet, select "Morph Bridge" to perform cross-chain token operations between the Ethereum Holesky testnet and the Morph testnet.


Of course, the premise is that our wallet needs to hold test ETH from the Holesky testnet (the Morph official documentation also recommends three faucets: QuickNode, Stakely.io, and PoWFaucet).


We can also join the Morph Discord community, enter the "discord-faucet" channel, and use the "/faucet+ address" command to obtain test USDT.



After obtaining test ETH and test USDT from the Holesky testnet, we can perform cross-chain operations through "Morph Bridge":


Select the token and corresponding amount, and on the "Deposit" page, transfer the token from the Ethereum Holesky testnet to the Morph Holesky testnet; the "Withdraw" page does the opposite.



BulbaSwap


Next is "BulbaSwap," where we can use the test ETH and test USDT previously cross-chained to the Morph Holesky for regular Swap and Pool (adding liquidity to LP) operations.


For example, exchange 5 USDT for ETH: first authorize the USDT contract call, then confirm the Swap to exchange for 0.628083 ETH.



Then open the "Pool" page, click "Add V2 Liquidity," select USDT and ETH, enter 5 USDT, and it will automatically match the amount of ETH to form an LP. Finally, click "ADD LIQUIDITY" and confirm in the wallet.


To remove liquidity later, you can select the corresponding LP position in your portfolio, then click "Remove" and confirm.



Abra Finance


Abra Finance allows us to experience crypto asset lending similar to Aave. First, you can open the "Dashboard" page, select USDT in "Assets to supply," and then click to deposit.



Then you can enable the collateral lending function for the deposited crypto assets, and select other crypto assets for collateral lending on the "Assets to borrow" page.



You can also view, track, and manage your on-chain lending positions in real-time.



Morpha.NFT


"Morpha.NFT" is an NFT trading market that allows users to search for and select any NFT series for buying and selling operations.



Taking the currently highest trading volume PandaGD series as an example, we can select any listed PandaGD NFT for sale, click "Buy," and complete the purchase with a wallet signature; similarly, click "Sell" to list for sale with a wallet signature.



2. Voice of the Jungle: Sign-in Voting


The Voice of the Jungle section "allows users to participate in shaping the Morph ecosystem through voting, thereby earning Morph points rewards." In simple terms, it means voting for the projects currently listed on the Morph official website activity page.


There are currently 9 voting options, including the aforementioned BulbaSwap, Abra Finance, and Morpha.NFT, as well as Public AI, PingPong, BitMetis, Starland AI, Rap Chain, and Song Protocol. These are likely the seed candidates for the upcoming Morph Holesky testnet or even the mainnet.



The key at this stage is "voting rights," meaning users cannot participate in voting initially and must obtain voting rights through "daily sign-ins."


It is also important to note that the official documentation specifically emphasizes, "Only voting actions can earn Morph points; merely accumulating voting rights without using them will not earn points," which indicates that "voting" rather than "signing in" is the only factor for earning points.


The corresponding "daily sign-in" rules are also quite interesting, with a 7-day cycle and a 2x reward multiplier, encouraging continuous sign-ins by gradually increasing the multiplier: 2 (first day) + 4 (second day) + 6 (third day) + 8 (fourth day) + 10 (fifth day) + 12 (sixth day) 28 (seventh day, earning an additional 2x reward, i.e., 14*2) = 70.


And continuous sign-in on the eighth day will...

At that time, the cycle will restart from the first day of the new round. However, to reward users for their consistent check-ins, the extra multiplier reward will increase to 2*2=4 times on the 14th consecutive day. This means that on the 14th day, you will actually receive 14*4=56 voting rights. This pattern will continue on the last day of each cycle, following the incremental pattern of 28, 56, 84, 112.


For example, if you check in for 4 consecutive weeks (28 days), you will receive a total of 448 voting rights: the same incremental voting rights for the first 6 days of each week (2+4+6+8+10+12)x4=168, and the incremental multiplier reward for the 7th day of each week (28+56+84+112)=280, adding up to 448.


In summary, consistent daily check-ins can earn you more voting rights, with rewards accumulating as the number of check-in days increases, especially when completing a full cycle, the reward increment will become larger.



3. Partners' Expedition: Task Platform


The third part, Partners' Expedition, allows users to enter Morph's partner list, earning Morph points while exploring new knowledge and networks by completing corresponding Bitget Wallet and Galxe tasks.


The Bitget Wallet tasks are relatively simple: enter the event page, add the Ethereum Holekey testnet and Morph Holesky testnet, and complete the cross-chain token transfer (for new users). As of the time of writing, more than 40,000 users have participated.




Galxe's tasks are more comprehensive. Users need to join the official Discord community, Telegram group, experience the Genesis Jungle, deposit ETH via cross-chain bridge, perform token swaps, and lending interactions. As of the time of writing, more than 27,000 users have participated.



Finally, when the "Genesis Jungle" event ends, Morph will tally the total points earned by users, which will serve as an important reference for future token airdrops and other exclusive rewards.


Developers: Opportunities in Ecosystem Construction


From a developer's perspective, Morph has recently launched a series of ecosystem activities and long-term plans, including incubators/hackathons for developers and projects in various subfields, to encourage and support different types of projects and developers to participate, with substantial funding and other forms of support.


Combining its incubator plan and the types of DApps already open for interaction, it is highly likely that Morph will invest more resources in promoting and incubating projects in Consumer (social, entertainment, points), DeFi, AI, and other areas. This is its main blue ocean to be developed, aiming to build a more comprehensive L2 ecosystem (recommended to watch "How to Deploy Contracts on Morph"), which is a visible opportunity period for developers and project teams in the near future.


Sparkloom Builder Program


On March 25, Morph announced the launch of the Sparkloom Builder Program, a 4-month program including an online hackathon and incubator plan. The hackathon prize pool is $20,000, and winners will be invited to join the Morph incubator plan. The final incubator winners have the chance to receive up to $100,000 in funding and share 30% of the total Morph airdrop.


Sparkloom Incubator Plan


Last month, Morph also launched the Sparkloom Incubator Plan, which runs from April 29 to June 30, open to high-quality projects in DeFi, GameFi, Infrastructure, NFT markets, Metaverse/NFT, Middleware/Tools, and other fields.


Morph is committed to providing a hub of funding support, mentorship, and incentives for the winners through this incubator plan, offering comprehensive support including funding, airdrops, and development guidance:


High-quality mentorship courses: Selected projects can participate in tailored mentorship courses covering basic skills such as Web3 community building, marketing strategies, tokenomics, and smart contract auditing, while receiving professional guidance from top mentors from renowned institutions like Dragonfly, LayerZero, The Block, Nansen, Pyth, etc.;


Funding support and airdrop incentives: Projects committed to long-term development within the Morph ecosystem will receive grants of up to $100,000 and share 30% of the future initial Morph airdrop;


Reach over 30 million crypto users: Through strategic partnerships with top exchanges like Bitget, MEXC, and leading wallets like Bitget Wallet and Trust Wallet, selected projects will have the opportunity to directly reach global users;


Top-tier resource connections: Selected projects will gain first-hand connections to top industry resources, including renowned global investors, outstanding project founders, top exchanges, etc.;


Full first-year sequencer fee profit return: Morph will return the profit from the first year's sequencer fees to the selected projects, paid quarterly;



Overall, developers and users/funds are two essential elements for building a prosperous L2 ecosystem. Both need to be equally emphasized and incentivized appropriately to attract a broader range of users and developers, which is crucial for development from 0 to 1 and then to 100.



From this perspective, Morph's new approach, whether it's the "Morph Zoo" points activities just launched in the first season or the incubator hackathon online and offline developer activities introduced in recent months, aims to maximize the benefits for early participating users and developers, working together to promote a positive feedback loop of on-chain use cases and user funds.



For keen and proactive users/developers, this also means a rare opportunity period:



Whether as a community user earning points through the "Morph Zoo" activities or as a developer deploying Consumer Dapp, AI, GameFi, and other types of DApps to gain a first-mover advantage, this is a blue ocean period. The users, projects, traffic, and community participating now will become each other's greatest support.



All past events are prologue. From a macro perspective, if everything goes smoothly, this combination of efforts may lay the foundation for a new wave of DApps, new users, and ultimately the growth of Morph's ecosystem TVL, setting a different pace from the previous L2/public chain boom.



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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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