Anthias.xyz x Moonwell Liquidation Health Tooling Grant Proposal

Proposals Moonwell Grant Proposal
1

Title: Anthias.xyz x Moonwell Liquidation Health Tooling Grant Proposal
Author(s): 0xBroze + Anthias Team (0xBroze#1326 in Moonwell Discord)
Submission Date: April 17, 2023

anthias-moonwell
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Proposal Overview :fish: x :first_quarter_moon_with_face:

Simple Summary

The Anthias team is proposing a grant to build a Moonwell-specific liquidation health dashboard for the Moonwell borrowing and lending market. This analytics dashboard will exist for the Moonwell community, enabling stakeholders within the Moonwell borrowing & lending ecosystem to manage liquidation cascade risk and more.

About Anthias + Abstract

The Anthias team is composed of three members of Dartmouth Blockchain. Our philosophy is to continually provide value to the blockchain ecosystem through shipping useful products and research. We have extensive experience in DeFi, having contributed at Yeti Finance, Primitive Finance, Temple DAO, and more. We have shipped multiple grants for Euler and Aave and have recently been approved for integrations with Compound V2 and V3 as well as Exactly Protocol.

This liquidation dashboard will improve the Moonwell stakeholder/token holder experience by allowing users to identify wallets close to liquidation on Moonwell and position themselves accordingly. The recent crash of May 2022 was caused largely by a series of liquidation cascades as large whale wallets were liquidated. As liquidators sold massive amounts of collateral on exchanges, collateral prices dropped, which resulted in more liquidations. We created Anthias to democratize liquidation health data of all wallets, so all users are able to manage liquidation risk more effectively.

Previous Work Showcase

  • Aave

    • We created our initial dashboard in June of 2022 to monitor liquidation health on Aave after the Terra/Luna collapse.
    • We completed our first grant for Aave in October of 2022. In this grant, we expanded our initial Aave dashboard to allow users to view historical liquidation health data in order to develop an even clearer picture around market risk.

  • Euler

    • We completed our first grant for Euler in September of 2022. This grant was to integrate our initial liquidation health dashboard with Euler.
    • Our second Euler grant was completed in January of 2023. With this grant, we expanded our tool suite for Euler to do Value at Risk monitoring and simulations, in-depth asset and health score filtering, and a more granular wallet view to show covariance among assets individual users were borrowing and supplying.

  • Compound

    • We were approved for our first integration with Compound V2 and V3 in March of 2023. This grant is to integrate our initial liquidation health dashboard with both Compound V2 and V3.

  • Exactly

    • We were approved for our first integration with Exactly Protocol in February of 2023. This grant is to integrate our initial liquidation health dashboard with Exactly on both Ethereum and Optimism.

Motivation

There are a number of risk vectors in borrowing and lending protocols, including smart contract risk, price oracle manipulation risk, governance / pool management risk, and market risk (liquidations + bad debt). As protocols like Moonwell continue to onboard more users, it is increasingly important to equip users with necessary risk-management analytics for healthy activity. Safeguarding users against risk ensures the long-term sustainability of the protocol, as well as an improved user experience (competitive differentiation with other borrowing and lending protocols).

Projects like Gauntlet Network and RiskDAO have showcased what is possible with on-chain analytics for DeFi. On a longer term horizon, we hope to expand on previous projects in two ways: historical data and granular daily data. We will store various metrics (some already live at Anthias.xyz), including Aggregate Liquidation Health, Total Collateral Value at Risk, Wallets at Risk, and more. Users will be able to monitor the historical trends of these metrics, while also viewing granular breakdowns of these metrics per day. We see Anthias as a useful public good for various stakeholders within the Moonwell ecosystem to manage risk: the DAO governors, users (borrowers and lenders), and researchers. The Anthias team prides itself on making risk management tools usable by all stakeholders–we will continue that mission via these tools for the Moonwell community.

Specification & Implementation

We are proposing a grant to fund the development of integrating a Moonwell dashboard with Anthias.xyz for the Moonwell borrowing and lending market with the deliverables listed below:

  • Live metrics presented: Active Wallets, Wallets at Risk, and Aggregate Liquidation Score
  • Table view presented: Active Wallets (includes address, supply amount, borrow amount, and liquidation health)
  • Graph view presented: Active wallets (includes liquidation health and wallet size visualization)
  • The ability for users to download a CSV of the data presented in the Table View, so that data can be used in modeling
  • Wallet View that displays collateral and debt by asset for individual wallets

Cost

  • The cost of this integration for our team will be $17k upon completion of the dashboard. This payment will be used for the following costs:
    • Database storage ($500)
    • Server hosting ($50)
    • Nodes ($450)
    • Contributor compensation ($16,000)

The deliverables will be live at www.anthias.xyz/Moonwell. These dashboards will be live for 6 months at which point the community can determine whether it would like to fund the Anthias team on a per-quarter basis to maintain server costs.

How long will development take?

We estimate development time to take 6-7 weeks from approval. Based on feedback from community members, we plan to continue iterating and shipping out new and useful features.

Voting

  • Yes - I approve the proposal
  • No - I do not approve the proposal
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Hi everyone! Looking for feedback on the Anthias x Moonwell integration proposal and hoping to send to Snapshot soon. Feel free to reach out to 0xBroze#1326 in the Moonwell Discord with any questions/ideas.

And if you can vote here when you have a minute, that would be great:

  • Yes - I approve the proposal
  • No - I do not approve the proposal

0 voters

1 Like
3

Hey @0xBroze.Anthias! Thanks for proposing this to the community! I’d like to know more about how anthias.xyz plans to build a dashboard for Moonwell.

In recent months, IntoTheBlock and Warden Finance have both received Moonwell Developer Grants and will soon integrate Moonwell into their risk analytics platforms.

ITB Grant (MIP-34/MGP-1): Moonwell: DeFi's Liquidity Well
Warden Finance Grant (MGP-2): Moonwell: DeFi's Liquidity Well

You can learn more about the grant process here: Moonwell Developer Grants Are Now Available! | by Lunar Technology Foundation | lunartechfdn | Medium

  1. What sets anthias.xyz’s dashboard apart from those being developed by IntoTheBlock and Warden Finance? What unique features are you intending to introduce that differentiate you from the others?
    For reference, here is the dashboard ITB built for Benqi, a lending and borrowing protocol on Avalanche: IntoTheBlock Risk Radar - Real-time Economic Risk Analysis for DeFi - Stay One Step Ahead + Warden Finance: https://www.warden.finance/

  2. What drew anthias.xyz to select Moonwell among the numerous other DeFi protocols available? Could you elaborate on how it would assist the Moonwell community in managing their risk better?

  3. Would the dashboard be available for both Moonwell Artemis on Moonbeam and Moonwell Apollo on Moonriver? Are you willing to support the Base deployment of Moonwell once it’s live?

Thanks and I wish you all the best on your grant journey!

1 Like
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Hey @Chrizy - great questions and really appreciate you taking the time to review the proposal. We have been following Moonwell for some time and reviewed previous grant proposals before drafting ours to make sure there was value we could add that would not be redundant.

At Anthias, we focus on providing data on risk for individuals wallets as opposed to the market as a whole. Because of this, we work in tandem with Warden and ITB for Euler, Aave, and Compound. In this grant proposal, we have outlined our plan to begin with Table View and Graph View, but we hope to expand this to Value at Risk monitoring as well, which is another unique feature we recently implemented.

We were drawn to Moonwell for one primary reason: decentralization. We are major believers in decentralization and want to support the decentralization of risk management in Moonwell. With decentralization obviously comes more risk around managing protocol security; this is where Anthias comes in to further protect. This grant, specifically, would allow individual users to more easily manage liquidation health risk to protect against liquidation cascades and, thus, maintain the overall health of the protocol. We will also be another strong voice in the risk management space for Moonwell, leading to further decentralization.

And yes - this integration would be for Artemis on Moonbeam as well as Apollo on Moonriver. And another reason we have submitted this proposal is because we are excited for the launch on Base, so we will be glad to integrate there as well as part of this grant. We will specify these in the Snapshot Proposal.

1 Like