MIP-B02: Moonwell WETH Market Improvement

MIP-B02: Moonwell WETH Market Improvement

Summary

MIP-B02 is a strategic proposal that is designed to enhance the user experience for those utilizing the WETH market on Moonwell’s Base deployment. Currently, those borrowing ETH on Moonwell (Base) receive Wrapped ETH (WETH), with repayments also requiring the usage of WETH. This results in a suboptimal user experience, as borrowers must unwrap their borrowed WETH before utilizing it in the Base ecosystem, and those repaying active borrows need to rewrap their ETH before being able to do so.

The primary objective of this proposal is to streamline these processes to ensure borrowers directly receive native ETH, thereby eliminating the need for manual unwrapping, and also to allow for repayments to be made in ETH, as opposed to WETH.

Motivation

This proposal aims to improve the UX for those engaging with the WETH market on Moonwell’s Base deployment. These proposed upgrades bring about several key advantages for end users:

  1. Borrows and repayments in native ETH: Borrowers, individuals redeeming their mTokens, and those reducing reserves within the Moonwell WETH market will now be able to directly receive or repay borrows in raw ETH as part of their transaction process.

  2. Integrated WETH Unwrapping: The WETHUnwrapper contract’s straightforward functionality ensures that the process of converting wrapped WETH into raw ETH is efficient and transparent. This ETH is then distributed to the relevant end user.

Implementation Details

Various smart contracts will be deployed as part of and alongside this proposal:

  1. MWETHDelegate Contract: This upgrade changes the logic contract for the WETH market to an MWETHDelegate contract. This contract’s primary function is to facilitate interactions with the new WETHUnwrapper contract, thereby enabling streamlined operations and improved user experience.

  2. WETHUnwrapper Contract: A dedicated WETHUnwrapper contract will be deployed as part of this proposal. The WETHUnwrapper contract is a simple smart contract deployed on Base that the MWETHDelegate contract sends WETH to and then calls unwrap, which converts the WETH into raw ETH and is then directed to the respective user.

  3. WETHRouter Contract: Adjacent to this proposal, a new WETHRouter smart contract will replace the currently deployed version. This upgraded WETHRouter contract will empower users to repay active borrows directly in ETH, bypassing the need for manual wrapping into WETH.

All new smart contracts associated with MIP-B02 have been audited by Moonwell contributors at Halborn Security. Halborn’s latest audit report can be found here.

Voting Options

  • Yes: A “Yes” vote signifies your support for the implementation of MIP-B02.

  • No: A “No” vote indicates your preference for the status quo, no changes should be made.

Conclusion

In summary, MIP-B02 is a proposal that will dramatically enhance the UX for those borrowing ETH on Moonwell. By deploying the new MWETHDelegate and WETHUnwrapper smart contracts, this proposal facilitates direct ETH borrows and repayments for end users and abstracts away the process of converting wrapped WETH into raw ETH.

Your support for MIP-B02 will play a pivotal role in enhancing the overall user experience and convenience of borrowing and repaying ETH on Moonwell’s Base deployment.

4 Likes

We wanted to let the community know that this proposal does not have any impact from a market risk perspective. We are in favor of the proposal.

2 Likes