Add VDOT as new market in MoonWell

In the nascent ecosystem of interoperable blockchains, where seamless asset movement governs evolution, the emergence of VDOT transcends mere tokenization. Its inherent interweaving with the Moonbeam protocol, via direct integration within the native app, surpasses transactional utility, forging a strategic symbiosis. This synergetic coupling, mirrored by VDOT’s esteemed presence on StellaSwap, a pivotal node within the Moonbeam firmament, underscores the mutual recognition of shared values and ambitious visions.

Therefore, with an almost preordained inevitability, VDOT stands poised to join the prestigious consortium of assets supported by MoonWell. Each constituent within this carefully curated portfolio represents a meticulously chosen building block, meticulously woven into a tapestry of opportunity for its discerning user base. VDOT, with its unwavering commitment to the tenets of decentralization, its robust operational architecture, and its thriving, engaged community, epitomizes the very essence that MoonWell seeks to empower and champion.

Adding VDOT is not merely an act of portfolio expansion; it signifies the forging of a potent nexus, a confluence of purpose in the service of progress. For MoonWell users, it unlocks a previously unexplored frontier, an opportunity to harness the multifaceted potential of VDOT within the dynamic Moonbeam environment. Conversely, for VDOT, it grants access to a vibrant, engaged community and a platform renowned for its unwavering dedication to user experience and cutting-edge innovation.

The inclusion of VDOT within MoonWell transcends the realm of strategic positioning; it orchestrates a symphony of purpose, a harmonious blend of ambition and shared values. This union represents a quantum leap not just for MoonWell and VDOT, but for the broader blockchain landscape, where interoperability and collaborative spirit pave the way for a bright, interconnected future. In this synergistic waltz, both platforms ascend, their combined radiance illuminating the path for others to follow.

Hey @Humble_Warrior! It would be great to see Bifrost’s vDOT on Moonwell. There is already a discussion here: Bifrost x Moonwell - Bringing the Liquid staking revolution to Moonbeam - Ideation & Discussion - Moonwell Governance Forum

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Hey @Humble_Warrior,

Like with last week’s snapshot proposal for adding ACA , I want to flag that your vDOT snapshot proposal may be a bit premature and lacks any relevant information about the asset. While I’m sure some 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.

As @Chrizy pointed out above, there is already a forum post up from the Bifrost team regarding the potential listing of vDOT on Moonwell. The Bifrost team has been coordinating with other Moonwell contributors/community members over the past few months to ensure that vDOT can be safely supported on Moonwell.

Key Requirements for Asset Support

For an asset to be safely 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 vDOT, there’s currently ~$160,000 of liquidity on Stellaswap and ~120k of liquidity on Beamswap.
  2. Robust and Reliable Price Feed: Moonwell currently utilizes Chainlink for all its price feeds. The Bifrost team has been exploring alternate oracle solutions.

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 .

Note that an asset listing Snapshot Vote should include "as much information as possible, including all fields from the “Risk Assessment Checklist”. Unfortunately, your proposal provides no relevant information that the community and risk managers can use to review/conduct due diligence.

Moving Forward

Given these considerations, the snapshot proposal for xcvDOT 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 (use it as a poll of sorts) 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.
  2. Contribute to the ongoing discussion on the governance forum to further explore the potential of xcvDOT as a collateral asset.
  3. Engage with the Bifrost team/community to address low onchain liquidity and development of a suitable price feed.

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

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