Monthly Governance Calls

Announcements & Updates Updates
10

Governance Call Recap - Oct 3rd, 2024

Agenda

  1. Introduction and Announcements from @boardroom
  2. wUSDM Proposal from Mountain Protocol (@julianMP)
  3. wrsETH Proposal from KelpDAO (@Hedged_Adi)
  4. Super OETH from Origin Protocol (@pete)
  5. Weekly Market Update & BASE/Moonbeam/Moonriver Recommendations from @gauntlet
  6. @0xMims Super Delegate Platform
  7. Delegation Pitches: @PGov, @DAOplomats.eth

Meeting Notes:

  • @alex. from Boardroom started the call with a recap of the Delegate Rush program. He reminded the community that we’re in the second half of the first phase of the program, the “Application Period.” He urged everyone to do their due diligence, look over the new delegation pitches in the forums, and consider delegating to the applicants. The Application Period of the program will close on October 11th and the Delegation Period will last four weeks from October 12th to November 9th.
  • Add wUSDM Market to Moonwell on Optimism
    • Martin from Mountain Protocol joined the call to give an introduction to the protocol and the team’s proposal. Earlier in the month, Julian from the team took to the forums to propose adding a market to Moonwell on Optimism for wrapped USDM (wUSDM). Mountain Protocol is the issuer of USDM, a USD-denominated, regulated, permissionless, yield-bearing stablecoin backed fully by US Treasuries. Martin mentioned that the protocol operates similarly to USDC or PYUSD, but Mountain Protocol’s business model passes the yield back to the holders rather than being captured by the issuer. He explained the advantages of holding USDM, including receiving a floor yield through low interest rate environment conditions. He also explained its rebasing mechanism. He wrapped up by mentioning a program from Optimism to provide incentives to protocols integrating yield-bearing assets and touched on regulatory concerns. Should the community decide to move forward through a successful Snapshot proposal, Gauntlet will provide risk assessment before the proposal moves onchain.
  • Add wrsETH Market to Moonwell on Base
    • KelpDAO created a Snapshot proposal in mid-September to add markets for their LRT, wrsETH, to Moonwell on Base and Optimism. The proposal passed successfully. On the call, Adi and Soufia mentioned the protocol’s adoption on Base and Aerodrome. Adi mentioned that they are waiting for Gauntlet to post market recommendations (which were posted shortly after the call) and that there will be an onchain vote shortly after. Finally, he touched on incentives that would come with the asset’s proposed markets.
  • Origin Protocol on superOETHb
    • Last month, Peter from Origin Protocol came on the call to give an intro to the protocol and discuss superOETHb, a new LST on Base network. This month, Peter discussed an upcoming proposal to add a market for super OETH on Moonwell. This class of LST is meant to be lower risk than restaking, but provide higher yield than staking alone. How it works: it combines liquid staking yield on L1 with compounded rewards on L2 through Aerodrome on Base (and Velodrome on Optimism for superOETHo). Protocol-owned liquidity (POL) is meant to ensure a 1:1 ETH peg. He updated the community with details surrounding the September 9th launch of the LST. TVL has grown from $7M to $320M and the protocol sits atop the DefiLlama list of yields on Base. He finished by mentioning the yield opportunities and the synergies that those DeFi strategies would have with Moonwell. Origin Protocol’s proposal went up later that day.
  • Sai from Gauntlet on Monthly Recommendations
    • Last week, Gauntlet offered their monthly recommendations on risk parameters across the four Moonwell deployments.
      • Base: Both supply and borrow caps for AERO were increased. Supply cap for cbBTC was increased. Both supply and borrow caps for USDbC and DAI were decreased. Reserve Factor for USDbC was increased. IR parameters were recommended to be adjusted: USDC (decreased Multiplier) and cbBTC (decreased Base and increased Multiplier).
      • Optimism: Borrow and supply caps were increased for WETH. Supply cap for Velo was increased. WBTC borrow cap was decreased. WBTC reserve factor was increased while its collateral factor was decreased. IR parameters were recommended to be adjusted: USDC (decreased Multiplier and increased Jump Multiplier), USDT (decreased Multiplier and increased Jump Multiplier), and DAI (decreased Multiplier and increased Jump Multiplier).
      • Moonbeam: Borrow caps for WBTC.wh, WETH.wh, and FRAX were decreased. Collateral Factors for USDC.wh, WETH.wh, WBTC.wh, and xcUSDC were decreased. WBTC.wh reserve factor was increased.
      • Moonriver: IR parameters were recommended to be adjusted: xcKSM (decreased Multiplier).
  • Sai from Gauntlet on the Weekly Market Update
    • Last Monday, Gauntlet posted their weekly market update.
      • Base: One asset had an average borrow/supply cap usage of over 75%: rETH (87.67% supply cap). The deployment had $512,653.61 in liquidations across six assets in the past week: mUSDC ($383.55K), mAERO ($113.52K), mcbBTC ($15.33K), mWETH ($251.15), mcbETH ($1.88), and mwstETH ($0.58).
      • Optimism: Three assets had an average utilization greater than 75%: USDT (84.78%), USDC (84.29%), and DAI (89.23%). The deployment had $1,040.39 in liquidations across two assets in the past week: mOP ($1.04K) and mDAI ($0.39).
      • Moonbeam: No asset had an average utilization greater than 75%. The deployment had $9,869.45 in liquidations across two assets in the past week: mxcUSDT ($9.77K) and mGLMR ($99.45).
      • Moonriver: One asset had an average utilization greater than 75%: FRAX (82.28%). No liquidations were reported.
  • 0xMims Delegate Platform
    • 0xMims is Moonwell’s latest delegate. He also is one of two existing delegates who has been onboarded as Moonwell’s first Super Delegates. So far during his contribution period to Moonwell, he has spearheaded the effort to add a Core Market for Circle’s EURC on Moonwell. On the call, he touched on his background with Penn Blockchain and Blockworks Research. He finished by offering assistance to teams or individuals creating forum proposals to add markets for new assets and by bringing up the idea of upgrading the Staking Module.
  • Delegate Rush Pitches: PGov & DAOplomats
    • Throughout September, applicants began submitting pitches for the Moonwell Delegate Rush. We were welcomed on the call by two experienced teams operating in crypto governance for many years; PGov is a team of governance professionals with expertise in DeFi and a long-time interest in Moonwell as users; DAOplomats is a professional governance organization with contributions to protocols like 1inch, Gitcoin, and BanklessDAO across multiple aspects of crypto including grants and tokenomics.

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Be sure to attend the next call on the first Thursday of November!

We host calls on the first Thursday of every month, 17:00 UTC.
Next Call: November 7th, 2024.

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