Monthly Governance Calls

Announcements & Updates Updates
15

Governance Call Recap

  • Date: March 27th, 2025
  • Time: 17:00 UTC
  • Moderator: Alex from @Boardroom
  • Recording Link: YouTube

Agenda

  1. Introduction
  2. Luke Youngblood on reserve auctions, OEV rollout, Mamo, and more
  3. Coolhorsegirl on the Moonwell Security Council
  4. Gauntlet’s Monthly Recommendations

Meeting Notes:

  • Alex started the call with a quick look at a few governance metrics. The first was the votable supply. At the start of the month, there was a total supply of ~285M tokens that were eligible to vote. By the end of March, that figure had climbed to ~311M, an increase of a little over 9%. In short, this means that more tokens are ready to be used actively in Moonwell governance, either through self-delegation or being delegated to by another user. Theoretically it could lead to higher voter turnout, depending on the distribution of that supply. The second metric was voter turnout. Despite having fewer onchain proposals than normal this month, quorum was consistently met and exceeded (always by 2x or 3x); voter values ranged from 233 on the low end to 324. The average is slightly lower compared to last month, but participation overall still remains very healthy.
  • Luke Youngblood Acknowledging the Hard Work of the Moonwell Community
    • Luke first touched on the contributions from Solidity Labs in creating two new smart contract systems – (1) Oracle Extracted Value (OEV) and (2) the implementation of reserve auctions. First, Solidity Labs has finished the pilot OEV rollout on Optimism Mainnet in the WETH market and they rolled out OEV price feeds to all of the other markets on Base and Optimism (excluding the stETH markets). With the protocol capturing these liquidations, MEV bots that liquidate underwater loans are now paying fees to the protocol itself. This makes Moonwell the first lending protocol on the Superchain to achieve this feat. Second, in the automated liquidity incentive proposals, Moonwell began auctioning off excess market reserves. The first reserve auctions last month increased the staking rewards rate on Base for the Safety Module from 7% to 10%. He mentioned that Gauntlet is helping to figure out the correct ratio of reserves to auction off for each of those markets. Between the auctioning of reserve assets, the OEV rollout, and the revenue from Morpho Vaults, Moonwell has become a first-mover in implementing multiple different innovative systems which reward users and voters. He finished by mentioning the team’s winning of the Coinbase hackathon grand prize with Mamo, a yield-seeking agent which uses Moonwell markets and vaults. There’s a new hackathon with $100K in total prizes to build AI agent collectives using the Agent Commerce Protocol developed by Virtuals. Moonwell and Mamo have joined the autonomous hedge fund. For more information, see this pinned Tweet. Later in the call, Luke mentioned that the Moonwell card can now be loaded via OP Mainnet and he gave an overview of Virtual Accounts.
  • Moonwell Security Council - Member Replacement (Ana Bittencourt)
    • Moonwell’s Security Council welcomed a new member this month - Ana from Lunar Labs. Super Delegate Coolhorsegirl submitted a Snapshot proposal in mid-March which sought to update the Security Council roster by replacing Elliot Friedman (Solidity Labs) - after his departure from actively contributing to Moonwell - with Ana Bittencourt, a full-time Solidity Engineer currently working with Lunar Labs. Ana has been working on Moonwell since last July; her expertise ranges from smart contract development and protocol security to deep familiarity with Moonwell’s codebase and operations. The next Security Council elections will take place onchain next month, but the current Security Council recommended filling in a replacement to avoid any security or governance risks. The updated Security Council now consists of the following five members:
  • Base/Optimism/Moonbeam/Moonriver Monthly Recommendations
    • Andrew came on to discuss Gauntlet’s latest monthly recommendations on risk parameters across the four Moonwell deployments.
      • Base: The reserve factor for WETH was increased and the supply cap for weETH was increased. IR parameters were recommended to be adjusted for USDC.
      • Optimism: The collateral factor for VELO was decreased and the VELO supply cap was increased. IR parameters were recommended to be adjusted for USDC, USDT, and DAI.
      • Moonbeam: Borrow Caps for WGLMR, USDC.wh, xcUSDC, xcUSDT, xcDOT, FRAX, and WETH.wh were decreased. Collateral factors for USDC.wh, WBTC.wh, and WETH.wh were decreased.
      • Moonriver: No changes were recommended.

Other Links:

Next Governance Call

Moonwell governance calls will take place on the last Thursday of each month at 17:00 UTC. The next call will be on April 24th, 2025.