Add ACA (Acala) support for Lend/Borrow

Hello Moonwell Community,

I want to address the recent snapshot proposal for adding ACA as a new market on Moonwell. While I’m sure many in the community appreciate your initiative and engagement in Moonwell Governance, it’s important to clarify the standard process for such proposals to ensure alignment with our protocol’s governance and risk management practices.

The Standard Governance Process

Moonwell governance emphasizes community involvement and thorough analysis before making significant decisions like adding new markets. Typically, this process begins with a discussion/post in the Moonwell Governance Forum. The forum serves as a platform for:

  • Engaging with the community to gauge interest and gather feedback.
  • Consulting with risk management contributors like Gauntlet and Warden.
  • Ensuring a comprehensive understanding and assessment of the proposed asset.

Key Requirements for Asset Support

For an asset to be supported on Moonwell, it must meet specific criteria, including but not limited to:

  1. Sufficient DEX Liquidity: Sufficient DEX liquidity is crucial for efficient liquidations and collateral assets can not be safely added without it. In the case of ACA, there’s currently ~$15,000 of liquidity on Moonbeam, with only $5 of liquidity on StellaSwap, which is considerably low.
  2. Robust and Reliable Price Feed: Moonwell utilizes Chainlink for all its price feeds. Unfortunately, there doesn’t seem to be an existing price feed for ACA on Moonbeam, which is an important requirement.

Adhering to the Asset Listing Framework

It’s also important to align with the Moonwell Asset Listing Framework, proposed by Gauntlet. This framework provides a structured approach to evaluate and consider new assets, so that they can be safely listed on Moonwell. You can review the new v2 framework in detail here.

Moving Forward

Given these considerations, the snapshot proposal for ACA appears to be premature. However, this doesn’t diminish the value of your proposal or your enthusiasm for contributing to Moonwell’s growth. You can still use this Snapshot to gauge community sentiment and then follow up with additional actions:

  1. Consult the Moonwell Asset Listing Framework, using this framework as a guide to understand what is required for an asset to be listed on Moonwell and to help guide the creation of your Forum Post.
  2. Initiate a discussion in the governance forum to explore the potential of ACA as a collateral asset.
  3. Work towards addressing low onchain liquidity and the lack of a Chainlink price feed.
  4. Engage with risk management teams for a thorough analysis.

Thank you for your understanding and your proactive involvement in Moonwell’s governance!