MIP-X38: Deploy OEV Wrappers Across Markets

Proposals Moonwell Improvement Proposal
1

MIP-X38: Deploy OEV Wrappers Across Markets

Summary

This proposal authorizes deployment of new Chainlink OEV Wrapper contracts across all Moonwell core and isolated markets. These contracts, ChainlinkOEVWrapper (core) and ChainlinkOEVMorphoWrapper (isolated), add to the current OEV wrapper implementation. The new contracts ensure the protocol receives its intended portion of OEV-generated revenue, while liquidators receive the proper liquidation bonus. These contracts introduce a unified and more efficient framework for OEV-enabled liquidations, ensuring consistent fee flows and improved reserve growth across the protocol.

Background

Chainlink’s OEV (Oracle Extractable Value) framework continues to mature, offering protocols new mechanisms to capture value from early price updates and high-priority liquidation actions. As this ecosystem expands, updated wrapper contracts provide a more cohesive model for integrating OEV across multiple market types.

Moonwell currently uses a mixture of OEV implementations across core and isolated markets. Introducing a standardized, modern OEV wrapper across all markets:

  • Improves the consistency of liquidation pathways
  • Ensures a unified approach to OEV fee routing
  • Establishes a long-term foundation for future oracle-layer upgrades

Proposal

Core Markets

  • Deploy a ChainlinkOEVWrapper for each core market
  • Wrap each market’s existing Chainlink price feed
  • Enable OEV-driven liquidations via updatePriceEarlyAndLiquidate()

Isolated Markets

  • Deploy an upgradeable ChainlinkOEVMorphoWrapper for each isolated market
  • Wrap each isolated market’s Chainlink feed
  • Integrate OEV-enabled liquidation logic into the isolated market structure

OEV Liquidation and Fee Routing

Once deployed:

  1. Anyone may trigger an early Chainlink price update.
  2. Liquidations may be executed immediately using the updated price.
  3. Liquidators receive the appropriate incentive.

All protocol-side OEV fees will be routed to the OEVProtocolFeeRedeemer, which provides permissionless functions to:

  • Redeem mTokens into reserves
  • Add reserves from isolated markets into core markets
  • Add ETH-denominated reserves to the WETH market (via wrapping)

Rationale

This proposal modernizes Moonwell’s oracle and liquidation infrastructure, consolidating OEV functionality across both core and isolated markets under a unified architecture. Deploying these wrappers enhances the performance and flexibility of liquidation flows, expands permissionless participation, and strengthens long-term reserve growth.

By adopting a standardized OEV framework aligned with Chainlink’s current design patterns, Moonwell ensures its markets remain efficient, responsive, and technologically up to date. The upgrade is operational in nature and presents low protocol risk while delivering clear economic benefits.

Voting Options

  • For: Deploy Chainlink OEV Wrappers across all Moonwell core and isolated markets and route OEV reserves through the OEVProtocolFeeRedeemer.
  • Against: Do not implement the expanded OEV infrastructure.
  • Abstain: No preference, conflict of interest, or other.
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