Add VDOT as new market in MoonWell

Proposals Community Proposal
3

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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