As a part of our role as a Governance Facilitator, Boardroom will host Monthly Governance Calls with the community. The purpose of these calls is to dive into important initiatives in Moonwell Governance. We will look into recently passed proposals, as well as those that are live or upcoming, providing a time for the community to ask questions and get answers before voting.
These calls will give a voice to the community and open a direct line of communication between contributors, delegates, and other DAO members.
This thread will contain the agendas, recording links, and other important information from past calls. A copy of these calls will live here in the Forum, as well as on Boardroom. You can find The Moonwell project on Boardroom at this link. To find the Governance Calls, navigate to âInsightsâ > âActivities and Meetingsâ.
Everyone is invited and encouraged to participate in these calls.
Overview:
This call is intended for the entire Moonwell Community including community developers, core devs, delegates, contributors, and new community members to discuss matters related to Moonwell.
The call is currently scheduled for 60 minutes monthly, on the first week of the Month.
Notes and recordings from each weekâs meeting are archived and shared publicly here.
Keep scrolling for the agenda and notes from past meetings
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I am really looking forward to these calls. I think they will go a long way to increasing communication and collaboration in the community. Plus itâs always nice to hear a personâs voice instead of just reading text on a screen where the true emotion and sense of humanity can often be lost
Previous work: temporal governance, base deployment
Current work: nomad collateral repayment proposal, xWELL, cross-chain governance.
Delegate platform: what we are trying to bring to the community
Quotes from Delegates
âMFAM reallocation for liquidity incentivesâ brought up a critical discussion on the runway and the Snapshot proposal process. @coolhorsegirl brought up the exhaustion of 50% of the MFAM incentives, saying: âLetâs reallocate 20% of the MFAM token supply from Developer Grants and Incentives to be used as liquidity incentivesâ. There was a bit of debate between different delegates on how this should have been implemented. Read along with the discussion in the above link.
@Curly stepped in with a few notes, including that the discussion should have been had on the forums first before going to snapshot for a vote, and the protocol could implement protocol-owned liquidity (POL)
@elliot brought up that Protocol-Owned Liquidity (POL) is a hard problem â how can we be sure that the Moonwell DAO goal of facilitating access to decentralized lending remains the north star, while also doing this new thing of âhow do we manage liquidity?â He cited OlympusDAO as an example. He also wanted clarification on which part of the voting process was incorrect.
Moderator:@alex. from @Boardroom
Note: No recording this month. Technical difficulties, you understand.
Agenda:
Rebalancing of Base Liquidity Incentives from @WardenFinance
$PINK airdrop application for Moonwell from delegate @curly
Aera Vault migration from Aera V1 to Aera V2 from @Gauntlet
Base/Moonbeam/Moonriver risk parameter and IR curves updates, plus xcUSDC recommendations from @Gauntlet
Meeting Notes:
@Luke from Lunar Labs provided an update regarding adopting a new WELL token standard. Moonwell will be looking towards migrating WELL to the xERC-20 standard, creating the ability to have a multi-chain governor contract that allows users to lend, borrow, and vote on Base. Voters should look for proposals coming at the end of this month to unify the network under this new standard. Additionally, he noted the expected adoption of Coinbaseâs new Smart Wallets, which are set to deploy soon.
Circulating supply for DAI on Base became critically low. Warden Finance recommended that the lending market supply be capped at 50% of on-chain circulating supply to avoid accumulating bad debt.
Hugo noted that rETH circulating supply did not allow for further growth to be sustained. The total supply for rETH lending market was standing at 55% of the circulating supply on Base. Hugo discussed the changes applied by Warden Finance, including drastically decreasing rewards for the DAI market to help reduce supply and borrow activity and shifting cbETH rewards towards WETH and USDC.
WELL and USDC supply reward distribution for cbETH decreased from 20% to 15% and DAI decreased from 10% to 5%. USDC and ETH both gained 5%, up from 20% and 40%, respectively.
An application went live on the Moonbeam forums for projects to get a share of a community redistribution of $PINK. Of the 1.25% total supply of $PINK that was allocated to Moonbeam, 50% was reserved for deployed Moonbeam projects with active users.
Moonwell delegate @Curly discussed the effort he has led on behalf of Moonwell to receive an airdrop of $PINK. The write-up on the Moonbeam forum for this airdrop proposal can be found here.
Curlyâs successful application for the airdrop request can be found here.
Aera V2 is live in production with users that include Compound and Threshold. It introduces new features, including the ability to generate yield on stablecoins, support for a broader range of assets and strategies, an enhanced security framework, and eliminating imminent loss.
Shaan noted that a previous Multichain hack (a cross-chain router protocol) could have resulted in a total loss of the vaultâs value in Aera V1. He then gave a product demo of Aera and showed off the financial metrics of the in-app vault. Notably, the Moonwell vault has increased its value by ~30% since the posting of the original forum proposal.
Sai discussed the recommendations published on 2/28/2024 for the three Moonwell deployments. Base had 12 risk parameter changes, including increasing reserve factors for wstETH, rETH, cbETH, and DAI and decreasing the DAI supply and borrow cap. Sai also mentioned the recommended changes in wETHâs and DAIâs IR curves. This combination of these actions was meant to manage concentration risk for DAI, improve overall capital efficiency for the protocol, and increase protocol reserves by raising the reserve factors for the Ethereum-based LSTs. Moonbeam had 6 risk parameter changes; Moonriver had one risk parameter change.
@coolhorsegirlproposed to add WBTC lending markets to Base following the assetâs launch on the network. Gauntlet offered to give initial parameter recommendations.
@alex. from Boardroom introduced the speakers and gave a few pieces of housekeeping information before diving into the main points of the meeting. First, multichain governance is live and a great explanation on how to migrate to the new WELL token was put up by @Chrizy on Discord. Second, Alex noted the increased number of proposals that went live in March and commended the community for consistently reaching quorum. Lastly, he announced an upcoming Galxe NFT campaign that will encourage voting on Base now that native WELL is supported. There will be a drawing of the NFT holders and the winners will receive a USDC reward. There will be an official announcement in the future detailing the specific criteria for minting the âBased Voterâ NFT.
As Cap Guardian, Gauntlet has the ability to quickly and efficiently make changes to asset supply/borrow caps without the need for a governance proposal. Recently, they adjusted borrow & supply caps for WETH, wstETH, and cbETH on the Moonwell Base deployment due to a large demand for these assets.
These updates are meant to adjust asset parameters (e.g. collateral factors and borrow caps) to balance risk and capital efficiency. The most recent update recommended the following changes:
Base: Five risk parameters were recommended to be changed: WETH supply and borrow cap (12,500 to 18,000 and 10,500 to 14,000, respectively), wstETH supply and borrow cap (1,800 to 2,100 and 800 to 900, respectively), and USDbC RF (15% to 20%). For IR parameters, only USDC had any recommendations: kink (0.8 to 0.9), multiplier (0.032 to 0.067), and jump multiplier (4.2 to 9.0).
Moonbeam: Seven risk parameters were recommended to be changed: xcUSDC and WGLMR collateral factors (10% to 15% and 58% to 57%, respectively), WGLMR borrow cap (22,500,00 to 10,000,000), WBTC.wh borrow cap (50 to 5), WETH.wh borrow cap (500 to 100), and the reserve factors for xcUSDT and xcUSDC (20% to 25%, each). For IR parameters, four assets were recommended changes: USDC.wh (an increase in multiplier from 0.0845 to 0.0875 and an increase in jump multiplier from 7.2 to 7.4), xcUSDC (an increase in multiplier from 0.0814 to 0.0875 and an increase in jump multiplier from 7.0 to 7.4), xcUSDT (an increase in multiplier from 0.0814 to 0.0875 and an increase in jump multiplier from 7.0 to 7.4), and FRAX (an increase in multiplier from 0.01 to 0.0563 and an increase in jump multiplier from 0.01 to 4.0).
Moonriver: Three risk parameters were recommended to be changed: FRAX reserve factor and collateral factor (15% to 25% and 57% to 53%, respectively) and WMOVR borrow cap (40,000 to 20,000). Only one IR parameter change was recommended for FRAX (increasing the multiplier from 0.0814 to 0.0875 and the jump multiplier from 7.0 to 7.4).
To start, Elliot summarized Solidity Labsâ efforts from the past four months. The broad goal was to make WELL natively multichain, giving the asset voting rights and the ability to be staked in the Safety Module on Base. Should the community decide to move in this direction, these changes enable the WELL token to be used on chains other than Base.
A series of proposals were created to enable multichain governance. In preparation for upgrading WELL to the xERC20 token standard, Solidity Labs proposed MIP-M21 to upgrade the Wormhole Bridge Adapter on Moonbeam. The upgrade was meant to improve the user experience of bridging by automatically unwrapping WELL (xERC20) back to the original Moonbeam WELL token on transfer. He then touched on the technical details of Wormhole message passing. Because the native WELL token is not tied to any one bridge provider, itâs possible to use other bridges (such as Axelar) in the future. Finally, Elliot touched on the security of this upgrade process; he recognized and fixed a potential DoS attack vector while implementing the changes. See the forum post above for more detailed security considerations and codebase changes.
Following the passing of MIP-M21, Solidity Labs proposed MIP-M23 and MIP-M24: Multichain Governor and WELL Migration. This pair of proposals sought to move from Compoundâs Governor Alpha smart contract to the new cross-chain governor, create xWELL, accept ownership of the contracts, and finalize the new governorâs abilities. To do this, Solidity Labs set the pending owners from the old Artemis timelock to the new multichain governor. MIP-M23 was executed from the Artemis timelock and MIP-M24 was executed from the new multichain governor contracts; the latter had to happen after the passing of the first. The multichain governor allows voting participation on multiple chains. Itâs deployed on Moonbeam and there is a vote collection contract on Base. Finally, Elliot gives a âvoting flowâ example of how creating a new governance proposal would work.
Proposal #4 in this process was MIP-B16. This prop sought to enable rewards for users in the Safety Module with the new WELL token on Base. The Safety Module helps to backstop and secure the protocol, rewarding users in the process. If there happened to be a loss on Base, the DAO could vote to apply a haircut to all stakers, making sure the protocol remains healthy. With this proposal, users can earn some yield for contributing to protocol security. This was the final proposal needed to fully activate all components of multichain governance. With all four proposals passed, WELL holders on Base can backstop the protocol, earn rewards, and have a voice in governance.
Elliotâs miscellaneous updates
A new native WELL WETH pool was created on Aerodrome. The rates in the pool are currently high due to a WELL token rate limit.
Moonwell is offering gas subsidies for users to migrate to native WELL.
MIP-M22 passed with a good voter turnout. The Solidity Labs team is currently working with the Nomad team to mint an NFT and then bridge and redeem the underlying assets.
In March, Curly submitted his monthly rewards speed proposals (MIP-M20 and MIP-R14). The main takeaway here is that the DAO is moving rewards away from USDC.wh towards the new xcUSDC.
An application went live on the Moonbeam forums for projects to get a share of a community redistribution of $PINK. Of the 1.25% total supply of $PINK that was allocated to Moonbeam, 50% was reserved for deployed Moonbeam projects with active users. Curly gave an update on his effort led on behalf of Moonwell to receive an airdrop of $PINK. The write-up on the Moonbeam forum for this airdrop proposal can be found here and the successful application can be found here. Curly announced that the $PINK airdrop campaign should be launching within 24 hours. There will be opportunities to get a share of the airdrop once it goes live, such as supplying liquidity to the GLMR or DOT markets and supplying WELL to the Safety Module. The details on the airdrop amounts will be announced shortly.
MIP-B16 Base Safety Module staking rewards from @SolidityLabs
Bolstering FRAX liquidity from @SolidityLabs
Meeting Notes:
@alex. from Boardroom gave a brief introduction before diving into the main points of the meeting. He gave a reminder that the Based Voter Galxe campaign is live until May 10th; any time there is a proposal thatâs votable from Base, users can mint the NFT after the voting period ends. Base voters of the original MIP-M26, the resubmitted MIP-M26, and MIP-B17 will be eligible to mint the Galxe credential.
Coolhorsegirl Updates
Delegate @coolhorsegirl updated the community with important information regarding the newly established Moonwell Foundation. Itâs a Foundation in the Cayman Islands with the purpose of monitoring, activating, and overseeing the Moonwell protocol and the Moonwell ecosystem. She also announced the âI Signed the DAO Constitutionâ NFT issued on Galxe. The blog post containing more information about the Foundation can be found here.
Gauntlet posted their regular recommendations for the three Moonwell deployments. The cap changes were executed via Cap Guardian.
Here are the recommendations:
Base: Recommended borrow caps for cbETH, wstETH, and rETH were increased. The supply cap and borrow cap for USDbC were decreased. The AERO CF was set to 65%. IR parameters were proposed to be changed for cbETH, wstETH, and rETH.
Moonbeam: The borrow cap for USDC.wh was decreased. Reserve factors for xcUSDT, xcUSDC, and USDC.wh were increased. Collateral factors for USDC.wh, WBTC.wh, and ETH.wh were decreased. IR parameters were proposed to be changed for USDC.wh.
Moonriver: The reserve factors for WMOVR, xcKSM, and FRAX were increased. The collateral factor for FRAX was decreased. The borrow cap for FRAX was decreased. IR parameters were proposed to be changed for FRAX and xcKSM.
Sai dived into Gauntletâs most recent weekly update for the Moonwell markets covering the previous week. These updates give an overview of which assets have an average utilization >= 75%, liquidations, protocol growth, and more.
Base: Two assets had an average supply cap usage of over 75%: cbETH (75.71%) and wstETH (85.83%). The deployment had three asset liquidations in the past week: mWETH ($1.82K), mUSDC ($1.71K), and mwstETH ($279.38).
Moonbeam: One asset had an average utilization greater than 75%: xcUSDT (77.98%). Two liquidated assets were reported: mGLMR ($12.58K) and mDOT ($404.72).
Moonriver: One asset had an average utilization greater than 75%: FRAX (88.85%). Two liquidated assets were reported: mMOVR ($107.03) and mxcKSM ($95.88).
After a successful Snapshot signal vote, Gauntlet created an onchain proposal for MIP-B17 Onboard AERO as collateral on Base deployment. The proposal added the native token of Aerodrome Finance as collateral to Moonwellâs Base deployment. Gauntlet set a supply cap at around 6M tokens and the IR curve recommendations were similar to those used for LSTs in the past.
Proposal #4 in the multichain governance process was MIP-B16. This prop sought to enable rewards for users in the Safety Module with the new WELL token on Base. The Safety Module helps to backstop and secure the protocol, rewarding users in the process. MIP-B16 was originally overwhelmingly passed by the community. However, it contained an error that prevented execution. On April 6th, the proposal was re-submitted for an onchain vote and it passed on April 9th.
In a multi-month effort to redeem dormant assets impacted by the Nomad exploit and to bolster the liquidity of the FRAX market on Moonbeam, Elliot announced in April that 2.8M FRAX have paid off bad debt. He addressed the many challenges experienced along the way and thanked the community for being understanding and patient.
Proposal for Moonwell MetaMorpho Vaults from @BlockAnalitica
Meeting Notes:
@alex. from Boardroom gave a brief introduction and announced an upcoming initiative on Galxe. Moonwell recently ran a âBased Voterâ campaign, where the goal was to incentivize users to upgrade their WELL and vote using the native token on Base. The campaign was successful â it resulted in over 200 eligible addresses and 145 successful minters. It also coincided with the largest voter turnout since August 2023; MIP-B17 gathered 145 onchain votes. For this new campaign, Boardroom will be kicking off a full-scale, monthly recurring governance NFT. Each month, $2000 WELL will be rewarded to 20 random NFT minters ($100 each). Every month, thereâs going to be three possible user actions to complete. Users who complete all three of them will be eligible to mint that monthâs NFT. More details will be shared soon.
Luke Youngblood Updates
Moonwell Contributor @Luke thanked the community for showing strong support over the years. He touched on the recent announcement of the Coinbase Smart Wallet and outlined how it relates to the wider crypto vision of making onchain finance easy to use. He also thanked Gauntlet, Warden Finance, and Solidity Labs on the risk management, incentive optimization, and development side of things.
Coolhorsegirl Updates
Delegate @coolhorsegirl updated the community with a reminder regarding the rewards speed proposals (MIP-M31 and MIP-R20) that went live just prior to the call. The pair of proposals rebalances liquidity incentives on Moonbeam and Moonriver; she encouraged everyone to go vote on them. Second, she plans to put up a forum post to gather community feedback on possibly expanding Moonwell to Optimism. She mentioned upcoming grants from Optimism to encourage projects to be built there. Aave is currently deployed there, but it lacks certain features like a Safety Module.
Gauntlet recently posted their regular recommendations for the three Moonwell deployments. The cap changes were executed via Cap Guardian.
Here are the recommendations:
Base: Supply caps for WETH and wstETH were increased, while the supply cap for USDbC was decreased. The borrow cap for wstETH was increased and the borrow cap for USDbC was decreased. Three IR curves were recommended to be adjusted: WETH (decreased Multiplier), USDC (decreased Multiplier), and AERO (increased Multiplier).
Moonbeam: Borrow caps for xcUSDC, xcUSDT, xcDOT, FRAX, and BTC.wh were decreased. Reserve Factors for WGLMR, xcDOT, BTC.wh, and ETH.wh were increased. Collateral Factors for ETH.wh, WBTC.wh, and USDC.wh were slightly decreased. Three IR curves were recommended to be adjusted: xcUSDC (decreased Kink and increased Multiplier), xcUSDT (decreased Kink and increased Multiplier), and FRAX (decreased Multiplier).
Moonriver: The single proposed change for Moonriver was an IR curve adjustment for xcKSM (decreased Multiplier).
Sai briefly recapped Gauntletâs most recent weekly update for the Moonwell. These updates give an overview of which assets have an average utilization >= 75%, liquidations, protocol growth, and more.
Base: Four assets had an average borrow/supply cap usage of over 75%: DAI (93.60% borrow cap and 92.66% supply cap), cbETH (83.34% supply cap), USDbC (81.42% supply cap), and rETH (77.56% borrow cap and 99.98% supply cap). The deployment had six asset liquidations in the past week: mwstETH ($14.35K), mWETH.
Moonbeam: One asset had an average utilization greater than 75%: USDC.wh (75.76%). Two asset liquidations were reported: mFRAX ($17.14) and mGLMR ($0.46).
Moonriver: One asset had an average utilization greater than 75%: FRAX (80.78%). Three liquidated assets were reported: mMOVR ($9.69), mxcKSM ($4.04%), and mFRAX ($2.32).
Recently, community member @BlockAnalitica proposed a collaboration between Moonwell, Block Analitica, B.Protocol, and Morpho Blue. Block Analitica is a risk management firm; Morpho Blue is a governance-minimized lending protocol that hosts MetaMorpho, a protocol for creating lending vaults; and B.Protocol is a builder of open-source protocols and risk mitigation infrastructure. This proposal entails creating yield-generating Moonwell MetaMorpho vaults with initial support for USDC and WETH. MonetSupply, on behalf of Block Analitica, went on to outline the proposal details and what makes Morpho Blue good infrastructure to help Moonwell capture activity on Base; Morpho Blue is government-minimized and immutable. He also discussed adding the Moonwell Security Council as a âGuardianâ role. âAllocatorâ and âGuardianâ roles can be changed in the future.
Be sure to attend the next call on the first Wednesday of July!
We usually host calls on the first Thursday of every month, 1 PM EST / 5 PM UTC. For July, this happens to fall on July 4th. Accordingly, we are moving the call to the day before: Wednesday, July 3rd at the same time.
Next Call: July 3rd, 2024. Mark your calendars:Discord