MIP-MD0: Integrate Moonwell on Mode Mainnet

Proposals
1

Summary

Following the successful passage of MIP-39 and MIP-B0, this proposal seeks the approval of the Moonwell community to authorize the activation of the Moonwell protocol on the Mode mainnet. Mode, a new modular, optimistic rollup L2 on the OP Superchain, is quickly establishing itself as a hub for DeFi innovation, providing unique yield opportunities and fostering a rich ecosystem of DeFi assets and dApps. By activating Moonwell on Mode, we aim to leverage Mode’s rapid growth, innovative features, and substantial Total Value Locked (TVL) to enhance Moonwell’s cross-chain interoperability and market presence.

About Mode

Mode is a state-of-the-art L2 blockchain that builds on the Ethereum network through the OP Superchain. Designed as a DeFi hub, it integrates leading technologies like Liquid Restaking Tokens (LRTs) and Bitcoin synthetics (m-BTC) to attract substantial TVL and enable a wide variety of yield opportunities. Mode supports protocol developers through Sequencer Fee Sharing and DevDrops, rewarding innovation and participation within the ecosystem. With a strong foundation in S-Tier Web3 marketing, Mode not only attracts but also effectively showcases high-potential projects.

LInks

X (Twitter)
Mode Docs (see Twitter, was limited to 2 links in the post)
DeFi Llama (see Twitter, was limited to 2 links in the post)

Motivation Integrating Moonwell on Mode offers several strategic advantages:

  1. Enhanced Yield Opportunities: Mode’s position as a DeFi hub on the Superchain enables Moonwell to tap into new and diversified yield-generating assets.
  2. Increased User Base and TVL: Mode’s growing popularity and innovative asset classes like LRTs and m-BTC present a significant opportunity to attract more users and increase Moonwell’s TVL.
  3. Developer Support and Visibility: Mode’s developer-friendly environment and marketing prowess provide a platform for enhanced visibility and user engagement, which can enhance and expedite Moonwell’s growth and adoption.
  4. Strategic Synergies: Both Moonwell and Mode share a vision for making DeFi more accessible and efficient, leveraging cutting-edge technology and strategies to serve a global audience.

Proposed Implementation Steps

  1. Adopt the same steps outlined in MIP-B0 for Implementation

The implementation of Moonwell on Mode will closely follow the established steps previously executed for the Moonwell deployment on Base, adapting as necessary to accommodate the unique specifications and opportunities presented by the Mode environment. This approach ensures that we leverage proven strategies while tailoring our actions to the new platform’s needs.

Implementation Overview:

The activation of Moonwell on Mode will utilize the following established framework, making specific adjustments where the Mode platform’s technical and operational differences require:

  1. Contract Deployment and Admin Rights:
  • Contracts specifically designed for Mode will be deployed, with admin rights assigned to the Moonwell Temporal Governor through the acceptAdmin function, mirroring the process used on Base.
  1. Governance Integration:
  • Governance structures will be adapted to support cross-chain operations between Moonbeam, Moonriver, and Mode, ensuring seamless governance continuity.
  1. Financial Safeguards:
  • Borrow and supply cap guardianship will be adjusted according to Mode’s market dynamics, with Gauntlet continuing in its role to manage these aspects effectively.
  1. Initial Markets
  • At launch, supported markets will include assets that align with Mode’s strategic asset classes, such as ETH, Liquid Restaking Tokens (LRTs), and Bitcoin synthetics (m-BTC).
  • Communicate with existing LPs combined with incentives (such as the ongoing DevDrop) to aid in bootstrapping initial liquidity
  1. Security Measures:
  • Proactive security measures, including the minting and burning of mTokens to mitigate potential risks, will be implemented following the precedents set in the Base integration.

Governance Guardians:

For the sake of continuity, simplicity, and trust, we propose that the same set of Governance Guardians who oversee the Moonwell on Base deployment also extend their responsibilities to include Moonwell on Mode. These guardians have already demonstrated their reliability and commitment to the community, and their ongoing involvement will provide stability and consistency across platforms.

Governance Guardians Nominated for Moonwell on Mode:

  • Gauntlet
  • Warden
  • Brandon Kase
  • X0s0l
  • Coolhorsegirl

Benefits to the Moonwell Community

  • Access to New Markets and Users: Expanding to Mode opens up Moonwell to a broader audience and more diverse market dynamics.
  • Enhanced Cross-Chain Capabilities: Mode’s innovative approach to DeFi and its integration within the OP Superchain facilitate deeper cross-chain interactions and liquidity sharing.
  • Robust Developer Support: Leveraging Mode’s incentives and tools for developers will accelerate Moonwell’s feature development and enhance platform stability.

Voting Options

  • Yes: Approve the integration of Moonwell on Mode mainnet, authorize the deployment, and support the initial liquidity and marketing efforts.
  • No: Do not proceed with the integration at this time.

Conclusion
Integrating Moonwell with Mode represents a strategic expansion into one of the most promising and rapidly growing L2 ecosystems, further linking the Polkadot and Kusama ecosystems to Ethereum. This move aligns with our goals of increasing accessibility, expanding our user base, and providing best-in-class yield opportunities for all. Your support is valued for making this significant step forward, and we encourage all stakeholders to vote in this transformative initiative.

2

@Deez Welcome to the community. This is interesting, and brings up a lot of interesting questions. I am still relatively new-ish to Moonwell but took my time to study all the past discussions and proposals over last couple months. Providing this context behind my thoughts & questions:

  1. @Deez Are you planning to do the heavy lifting on this? For Base, I saw a lot of effort was put in by @elliot and team at Solidity labs on a timescale of weeks and months.

  2. The Base migration was a process and took some time, and we’re still early as we gain some traction on base. I would love @Luke input and thoughts on this.

  3. @Deez I would love some additional (more specific) discussion on value proposition for MoonWell, risks, success case study, benefits of adding Mode Network especially at this stage.

In all, this sounds very interesting. My key concern is the amount of effort required can significantly distract from gaining traction on Base at this particular point in time. I could be wrong and it could be that I am unaware of some serious leg work already completed behind the scenes. If so, it would be great to discuss as a community what has already been completed and discuss in the next governance call.

Where I am coming from: I am very interested in Moonwell’s long term success, and looking backwards 5 years from now, I want us as a community to look back and say we made the right choices at the right moments in our journey to becoming the leading 12-figure Defi lending platform :blush:

3

Thank you very much for having me.:dove: It was actually quite enjoyable perusing the forums yesterday doing research for this proposal and seeing, like you mentioned, the significant journey Moonwell has already embarked on.

  1. I believe and expect the lifting will be a join ops. Mode is a young chain but the team and engineers are hungry and looking to build useful, longstanding integrations that will lay the foundation for a true DeFi hub on the Superchain. The time it will take is the time it will take - of course the sooner the better as we have bootstrap incentive programs, but thorough, thoughtful and secure integration is paramount above all else.

  2. Very much understood. The reason for reaching out early is precisely about traction, as the earlier we can integrate protocols, the better the chance they get sticker liquidity and loyal community. Time spent and interaction together are the best builders of trust - and with that, trust in longstanding capital deployment. We envision a world with both Base and Mode existing very harmoniously on the Superchain.

  3. Value Prop: Imo the primary value prop for Moonwell is gaining access to the rapidly growing Liquid Restaking Tokens (LRT) and synthetic Bitcoin (m-BTC) communities and TVL. Mode’s BD efforts have been largely been focused on building relationships with these communities and protocols to create the foundational liquidity layer for Mode as a DeFi hub (synthetic dollars (I.e. Ethena) and yield-markets (I.e. Pendle) are also on the potential horizon). The current TVL on Moonwell on Base is largely ETH and LSTs. This is quite healthy, but we’d love to really expand those markets on Mode to these other asset classes, along with other LSTs as well (I.e. pxETH). Then ofc, Moonwell is a 2-way street, so some of these communities may find their way over to Moonbeam who may have otherwise not had the curiosity or means to learn / experiment.

Success Case Studies: See Ionic, Sturdy and Ironclad MMs currently deployed on Mode (https://defillama.com/chain/Mode)

Risks: Opportunity cost for Moonwell discussing / implementing / supporting, SC risk, etc.

Benefits at this stage: Access to Mode first-year incentives (DevDrop), first “batch” movers advantage. There is competition in the lending markets but Moonwell is a robust platform with a bridge to the parachain eco that is in a class of its own. Access to a growing Mode community who are still joining other protocol communities, still very much shaping the overall identity of the eco (Moonwell could be a place with open arms).

Very much looking forward to open dialogue and discussion.

Also, as much I like being a one-man show here in the forums, it takes a village and a team to execute anything and everything. I would love to start a group TG and bring in all stakeholders and passionate community members to roll up our sleeves here. My TG is handle is @Deez333 if someone would like to DM me and do the honors. :dove: