Hi @Hugh , thank you for your remarks.
I have a high level concern that the combined smart contract risk of Morpho + Aave + Compound
I hear your point, but Morpho’s security practices are highly valued in the space. More than 20 audits in total, ranked first out of 300+ DeFi protocols on DefiSafety, formal verification, formalization of the protocol with yellowpaper.morpho.org, etc.
Not that it is Morpho + Aave or Morpho + Compound, not Morpho + Aave + Compound
Nexus can’t directly allocate to Morpho without a tailored integration
I am not sure to get this. Supplying on Morpho is as simple as supplying to aave. There is a one-click interface Safe and EOA wallets or a simple call to the function supply/withdraw for the smart contracts.
I get the added value of Enzyme for getting Nexus to access direct ETH staking with specific operators, not to interact with Morpho. Especially given the fee they take and the additional counterparty risk.
return of this investment option has to be materially higher than ETH staking given the risks involved. Gut feeling is ETH staking + 3-4%.
The current yield on Morpho plus MORPHO tokens is close to 3%. However, what is most important to me is that supplying ETH to Morpho mitigates Nexus’s exposure to staking risks. Additionally, Morpho provides stronger instant liquidity guarantees for large amounts.
I hope this answers your questions!
Paul