# \[RFC\] Mandate & Methodology V2 and Initial Eligible Collateral Universe

**URL:** <https://forum.reserve.org/t/rfc-mandate-methodology-v2-and-initial-eligible-collateral-universe/1568>\
**Category:** Electronic Dollar (eUSD)\
**Created:** [June 12, 2026, 9:34am UTC](https://forum.reserve.org/t/rfc-mandate-methodology-v2-and-initial-eligible-collateral-universe/1568 "2026-06-12T09:34:59Z")\
**Posts on this page:** 1\
**Showing post:** 7

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**Author:** ![pmckelvy](https://avatars.discourse-cdn.com/v4/letter/p/47e85d/32.png) [@pmckelvy](https://forum.reserve.org/u/pmckelvy)\
**Post date:** [June 22, 2026, 4:06pm UTC](https://forum.reserve.org/t/rfc-mandate-methodology-v2-and-initial-eligible-collateral-universe/1568/7 "2026-06-22T16:06:23Z")

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the protocol team has reviewed the morpho v2 vaults and determined they are not a great fit for the yield protocols.

1. Per-vault pausable issuance gates — distinct from a full-protocol pause; transfers stay open, so auctions could clear at terrible secondary-market prices precisely when you’d want to sell during a collateral default.

2. Curator-flippable management fees — curators can turn fees on at any time. Only 1 of 8 vaults has it on today; flipping it on any of the other 7 drops ref-per-tok and triggers an immediate nuisance default, causing the protocol to go into unnecessary re-collat auctions

3. Reward yield doesn’t stream through exchange rate — yield is claimable, not embedded. Worse, several reward tokens (notably MORPHO itself) have no on-chain oracle, so you can’t even materialize the yield by trading it out. i think this is only relevant for 2 of the vaults, so for those 2 you need to essentially discount the morpho part of the yield unless they get an oracle

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