MIP-B45: Remediation of Base Safety Module Rewards (Phase 1)
Summary
This proposal reimburses stkWELL stakers on Base who lost rewards due to the reward calculation bug triggered by MIP-X28. It creates a Merkl airdrop campaign to fully refund affected users for their pre-bug rewards, sets Base Safety Module emissions to zero going forward, and transitions reward distribution to Merkl claims.
For those unfamiliar, Merkl is an incentive distribution platform headed by the Angle Protocol team. The protocol connects liquidity providers and distributes rewards on behalf of both users and protocols. It leverages both onchain and offchain data to compute rewards and points for campaigns giving it a range of flexibility. Read more here.
Wallets that overclaimed WELL following the execution of MIP-X28 will not receive additional tokens. A list of these addresses is published below, and they are encouraged to voluntarily return the excess tokens to the Temporal Governor contract. However, these wallets face no legal action should they choose not to.
| Address | Amount Claimed | Amount Earned | Over Claimed |
|---|---|---|---|
| 0xE22B0ebE4b97be51fbB007871bC85FB6E1158Ef8 | 445968896216449815419140 | 445968.9 | 445,472.34 |
| 0x3d0cFCC2BaAf94a8ef9eba1A2C577CC35F20E4bF | 40533524780949628548216 | 40533.52 | 40,512.11 |
| 0xe66E3A37C3274Ac24FE8590f7D84A2427194DC17 | 1567206220420383081996524 | 1567206.22 | 1,567,195.79 |
| 0xeb2751d509f2b04d748b2e32e6a7a307a51e8c29 | 271630709894679949014495 | 271630.71 | 271,478.02 |
| 0xFB3E5CBCc4e995114025862Ceffec1AC94796FDe | 222530391861173085739049 | 222530.39 | 222,412.42 |
| 0x98f6484b2400b251705822767117b6BA89A5d70e | 3463079512667266617736402 | 3463079.51 | 3,460,859.66 |
| 0x9F3fc75C2aA56DB0da8B70A70E63Dc0D27ba4628 | 1142270956817290842301362 | 1142270.96 | 1,141,659.17 |
| 0x6134F7D28B4E6C4b266c36acd6542B7a832c118b | 14037633947533432454061 | 14037.63 | 14,032.35 |
| 0x1c0eC596303Ce6666f5a4D24c29e78Cf881cb5d3 | 1098265359039080330390138 | 1098265.36 | 1,097,542.95 |
| 0x200e073f2bb2E6c420dd986F52234815599B58Dd | 97536352569904478791370 | 97536.35 | 96,423.28 |
| 0x9C5a7A7326Cb38765990aCfEeeD8F52316a8c0A7 | 865287767464643428565 | 865.29 | 861.10 |
| 0xbb7809A2bF7B788CbEf16CA8F1e9D8Ab44756C90 | 3517936867507719451852 | 3517.94 | 3,515.69 |
| 0x27f52Daa475DA8DCd1e456b2d5e6C7382Bb0774D | 21842574285183188700 | 21.84 | 21.83 |
| 0x40d858CbD3Dfd86397dd9478e2287044419f8926 | 5703457272455087508267 | 5703.46 | 5,585.58 |
| 0x85c9C226a6287d1A62F77857b687277C9c5011d6 | 9033210431513985570000 | 9033.21 | 8,861.52 |
| 0xE009ed8E562FC31a88c2B2D8d53d22cd6E65257E | 30596256691950541470402 | 30596.26 | 30,580.62 |
| 0x1bB0BdEE9a305de2ebD0a9d9752d690F839DaaA7 | 2632701197927798369423 | 2632.7 | 2,628.60 |
| 0x35e5f7158957DaabE0c3C27D585e01a32A1C405c | 664035960555524858855 | 664.04 | 651.43 |
| 0xc8a5CE9ea6716B04F8c971b591DD0611318ec9D3 | 5199022686051629619699 | 5199.02 | 5,087.26 |
| 0x5A2F97034b259e53568890cAf132164D5A9a3760 | 137760144044125155504 | 137.76 | 137.59 |
| 0x04003e7b28D08bA3A3F9111702Ca8279d786c74C | 459670116144668201550 | 459.67 | 451.86 |
| 0x255aAf3e91f40eF6558f67d10Fcd19cFF44e3582 | 2731674306562829953632 | 2731.67 | 2,729.89 |
| 0x22723cc5aE5a1B4514ca41F2466E2ADe15Cf529B | 1148798372408811878716 | 1148.8 | 1,144.60 |
Background
On August 13, 2025, the execution of MIP-X28 updated reward speeds for the Base Safety Module. This triggered a bug in the reward configuration due to an edge case:
-
An address transferred stkWELL to the stkWELL contract, creating a non-zero balance in the contract.
-
An admin function was then called on Base to update the reward configuration, which caused reward accruals to inflate.
- Impact was limited to Base only.
- User funds were never at risk.
- The overflow caused reward accruals to spike, allowing the first 23 claimants to drain the full four-week reward budget (8.4M WELL).
- Thanks to security practices that only fund rewards on a per-period basis, losses were limited to that reward window.
This proposal ensures stkWELL stakers are fully reimbursed for their legitimate rewards.
Proposal
If approved, this proposal will:
- Allocate WELL to fund a Merkl airdrop for all stkWELL stakers entitled to rewards prior to MIP-X28.
- Set emissions on the Base Safety Module to zero, preventing further distribution via the staking contract.
- Transition all Base Safety Module rewards to Merkl-based claims going forward, using Angle Protocol.
- Exclude the 23 wallets that overclaimed during the bug window. These addresses are listed below. They may voluntarily return excess WELL by transferring to the Temporal Governor contract - 0x8b621804a7637b781e2BbD58e256a591F2dF7d51. Regardless of whether these wallets return the funds or not, they will not face any legal repercussions. If you send within 100 WELL of the overclaimed amount we will consider your debt repaid.
Rationale
- Restores trust in Moonwell staking by making affected users whole.
- Provides a clean path forward by moving reward distribution to Angle Protocol, avoiding the need for a complete Safety Module liquidity migration on Base.
- Maintains long-term alignment between stkWELL holders and Moonwell governance.
Implementation
- Take a snapshot of stkWELL balances at the block immediately prior to MIP-X28 execution.
- Generate a Merkl root of stkWELL staker entitlements
- Deploy a Merkl distributor via Angle Protocol.
- Fund the distributor with the required WELL.
- Communicate claim instructions to stkWELL holders.
Next Steps
- This proposal covers Phase 1 remediation: reimbursing pre-bug rewards and transitioning to Merkl claims.
- A future governance proposal will address post-bug rewards using a time-weighted distribution.
Voting Options
For: Approve the Merkl airdrop, set Base Safety Module emissions to zero, and transition rewards to Merkl claims.
Against: Do not reimburse stkWELL stakers or change Base Safety Module reward distribution.
Abstain