Monthly Governance Calls

Announcements & Updates Updates
13

Governance Call Recap

Agenda

  1. Introduction from Boardroom
  2. tBTC Core Market Proposal from Threshold Network
  3. USDS Core Market Proposal from 0xMims
  4. Block Analitica Updates
  5. LBTC Core Market Proposal from Lombard Finance
  6. Base/Optimism/Moonbeam/Moonriver Recommendations from Gauntlet

Meeting Notes:

  • @alex. from Boardroom started the call with the Moonwell Minute, a quick look at quantitative governance data from the past month. The first metric was proposal participation. Overall, we’re continuing to see elevated voter turnout after a voting requirement was established by MIP-X05. The first proposal of the month, MIP-X08, broke the previous voter turnout record by a significant margin. In November, MIP-B36 got 388 votes, which eclipsed the last all-time-high of 282 votes in April 2023. MIP-X08 managed to hit 620 voting wallets, a 159% increase versus the previous record. He mentioned that this set of data indicates that voters are turning out as early as possible in the month. The second metric discussed was the Nakamoto Coefficient. This month, the number of Moonwell delegates required to comprise 50% the protocol’s voting power has decreased from six voting wallets to five.
  • Ethan from Threshold Network on a tBTC asset listing
    • January 4th, a forum post centered around adding a tBTC Core Market to Moonwell was created. tBTC is the Bitcoin-backed permissionless derivative token issued by Threshold Network, allowing Bitcoin’s value to be used in applications on other blockchains. The forum post lays out the protocol’s progress, including chain expansions, market cap, integration with other lending protocols, and more. On the call, Ethan gave an alpha leak that direct minting on Base is coming soon; bridging will no longer be required. He emphasized that tBTC is a good option for users who want to reduce their dependence on centralized parties. He mentioned the possibility of an Optimism-focused proposal for tBTC on Moonwell in the future.
  • 0xMims on a USDS asset listing
    • Super Delegate 0xMims discussed a forum post that he published on the last day of the year, seeking to add a Core Market for USDS - Sky Protocol’s Sky Dollar - to Moonwell on Base. USDS is a stablecoin that maintains a soft peg to the U.S. dollar and is backed by surplus capital. It progressed to a Snapshot vote on January 1st, which was successful. On the call, 0xMims mentioned factors including the asset’s liquidity on Base and he addressed any potential concerns over centralization. Luke then jumped on the call to chime in on Sky Protocol’s further plans. Notably, he mentioned the protocol’s plans to expand across L2s and the Superchain. Inclusive of that effort is a 6.4% USDS savings rate on Base (in addition to the normal supply APY earned through supplying collateral on Moonwell).
  • Definikola from Block Analitica on the Monthly Recap, Moonwell Frontier cbBTC Morpho Vault on Base, & PT-LBTC risk assessment
    • Early in December, Block Analitica created a forum proposal to launch a fourth Vault - following the success of the ETH, USDC, and EURC Vaults - called “Moonwell Frontier cbBTC.” The Vault’s aims to attract Coinbase’s cbBTC token depositors. The same role assignments applied; the Owner is the Moonwell DAO, the Curator is Block Analitica & B.Protocol, the Allocator is Block Analitica & B.Protocol, and the Guardian is Moonwell Security Council. The associated onchain MIP was successful. Shortly after, Definikola posted a risk assessment for Pendle PT-LBTC. PT-LBTC is the principal token (PT) of Lombard Finance’s LBTC on Pendle, a fixed-rate protocol that works by splitting a yield-bearing token into two components. Definikola also brought up the most recent Monthly Recap for the Moonwell Flagship Vaults. The combined TVL of the ETH, USDC, and EURC vaults hit an all-time high in November and Morpho’s allocation model optimization upgrade worked as intended. The teams executed parameter adjustments, including increasing the wstETH/ETH supply cap and reducing the supply cap for rETH/ETH on the vaults on Morpho’s Base deployment.
    • Luke asked questions regarding increasing the supply caps for the PT-LBTC market and the borrowing demand. Definikola confirmed that the supply cap was increased to 200 cbBTC and that borrowing demand is increasing. Luke then highlighted that these markets are very strategic for Moonwell, mentioning the potential for Babylon to grow TVL on Bitcoin mainnet. He finished by vouching for the Lombard team.
  • Add LBTC to Moonwell Core Market on Base
    • Lombard Finance created a forum post in early December discussing potentially adding a Core Market to Moonwell on Base for the protocol’s Bitcoin-backed liquid-staking token built on Babylon, LBTC. A Snapshot went up for a signal vote in mid-December, which was successful. On the call, Maksym gave an overview of the protocol and its underlying use of Babylon; he gave the case for why the community should consider using Lombard given its accrual of Babylon points. Luke compared the situation with Lombard Finance to that of Ether.Fi last year on mainnet: once it was listed as a collateral asset, borrowing demand for ETH grew.
  • Base/Optimism/Moonbeam/Moonriver Monthly Recommendations
    • In December, Gauntlet offered their monthly recommendations on risk parameters across the four Moonwell deployments.
      • Base: Supply and borrow caps for USDbC were decreased. The collateral factor for USDbC was decreased while the collateral factor for weETH was increased. IR parameters were recommended to be adjusted for USDC, EURC, and cbBTC.
      • Optimism: Both supply and borrow caps for WBTC decreased, while WETH’s supply cap increased. The Collateral Factor for WBTC was decreased. IR parameters were recommended to be adjusted for USDC, USDT, and DAI.
      • Moonbeam: Borrow Cap for WBTC.wh was decreased. Collateral factors for USDC.wh, WETH.wh, and WBTC.wh were decreased. Reserve factors for xcDOT and WGLMR were increased.
      • Moonriver: No changes were recommended.

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Be sure to attend the calls on the first Thursday of each month at 17:00 UTC.

Next Call: February 6th, 2025.

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