Monthly Governance Calls

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11

Governance Call Recap - Nov 7th, 2024

Agenda

  1. Introduction from @boardroom and @majin
  2. Base/Optimism/Moonbeam/Moonriver Recommendations from @gauntlet
  3. @0xMims on Further Formalizing Governance Procedures
  4. @puffer on an upcoming pufETH proposal
  5. Delegation Pitches: @FranklinDAO

Meeting Notes:

  • @alex. from Boardroom started the call with a recap of the Delegate Rush program. He reminded the community to look over those new delegation pitches in the forums and consider delegating to the applicants to help them reach 200K WELL. The Delegation Period will end on November 9th. He then gave the Moonwell Minute, discussing Moonwell’s delegate Nakamoto Coefficient, votable supply, and proposal participation.
  • Increasing Governance Participation
    • Moonwell contributor Majin came on the call to discuss a forum proposal created by Luke. Luke previously shared his thoughts on implementing a system to both increase participation in governance and protect against governance attacks, citing a recent attack on Compound. MIP-X05 was then created to:
      • Reduce the Safety Module cooldown period from 10 days to 7 days on Base and Optimism
      • Require voting at least once in the last 30 days to claim staking rewards
    • The proposal was successful. Majin discussed the various comments and ideas being shared on that proposal before addressing Gauntlet’s addition of 80K USDC rewards for the cbBTC market to be distributed over the next month. He then addressed the recent TVL growth and Vault growth through Block Analitica’s recent forum update. He finished by recognizing PGov’s governance forum activity as one of the incoming Delegate Rush applicants.
  • Sai from Gauntlet on Monthly Recommendations
    • On October 23rd, Gauntlet offered their monthly recommendations on risk parameters across the four Moonwell deployments. Only three deployments required MIPs. For an explanation of the terminology, see the comment here.
      • Base: Both Supply and Borrow Caps for DAI and USDbC were decreased. The collateral Factors for USDbC and DAI were decreased while their Reserve Factors were increased. WETH Reserve Factor was decreased. IR parameters were recommended to be adjusted for DAI, cbBTC, WETH, and USDbC.
      • Optimism: Both Borrow and Supply Caps for WBTC were decreased. The Collateral Factors for WTH, cbETH, wstETH, and rETH were increased. The Reserve Factor for WBTC was increased while its Collateral Factor was decreased. IR parameters were recommended to be adjusted for WETH.
      • Moonbeam: Borrow Caps for xcUSDC and xcUSDT were increased. Collateral Factors for USDC.wh, WETH.wh, and WBTC.wh were decreased. WBTC.wh Reserve Factor was increased.
    • Sai also touched on other topics such as why an increasing utilization typically leads to a high degree of rate volatility (as seen with DAI and USDbC on Base) and a correlation between LST supply and WETH borrow.
  • Further Formalizing Governance Procedures
    • Super Delegate 0xMims came on the call to discuss his forum post on potentially adding an additional degree of structure to the voting process. He gave an overview of the governance process employed by Arbitrum as an example. In Arbitrum, Snapshots are put up for a vote every Thursday and there is a week-long vote period; onchain proposals are uploaded on Mondays and executed Thursdays. With this structure, proposals would be started and ended on predictable, set days of the week; this process could aid voters in different time zones and add structure for delegates.
  • Add pufETH market to Moonwell on Base
    • At the start of October, Puffer Finance created a forum post outlining a proposal to add a market for pufETH to Moonwell. The Liquid Restaking Token (LRT) issued by the protocol offers Ethereum liquid staking rewards and integrations across other DeFi platforms. For more on this proposal, including TVL, liquidity, security, and more, visit the forum post above. Amir, the CEO, gave a deep dive into the protocol and what makes it stand out from other LRT providers. He touched on the protocol’s innovations and contributions to the industry, including solving problems like MEV stealing and lazy node operators, introducing Validator Tickets (VTs), and introducing anti-slashers, which were backed by an Ethereum Foundation grant.
  • Delegate Rush Pitches: FranklinDAO
    • Throughout September, applicants began submitting pitches for the Moonwell Delegate Rush. On last month’s call, we hosted two of the applicants: PGov and DAOplomats. This month, we were welcomed by FranklinDAO. The team - formerly known as Penn Blockchain - is a well-known student-run DAO comprised of University of Pennsylvania students. The post outlines their contributions to major DAOs including Uniswap and their teams’ experience at crypto firms including Chainlink. For more information, read the post above and consider delegating.

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

We host calls on the first Thursday of every month, 17:00 UTC.

Next Call: December 5th, 2024.