Monthly Governance Call – October 2025 Recap
Welcome & House-Keeping
- Moderator: Alex (Boardroom)
- Speakers: Luke & Darren/0xMims (Lunar Labs), Chris (Anthias)
- New Call Structure: Q&A sourced from a Google Form shared before each call.
Core Contributor Updates (Luke @ Lunar Labs)
- Basecamp & Base token
- Coinbase is exploring a Base network token aimed at rewarding meaningful creation/use (creators, apps, active users). Timing likely not in 2025; expect thoughtful, multi-phase design.
- Coinbase retail onchain swaps
- Coinbase is rolling out in-app swaps for Base assets. Mamo is already market-making 19 pairs, positioning to capture fees as retail volume ramps.
- Aerodrome launches
- Recent launches (LITKEY, Syndicate) performed well for veAERO voters; Moonwell/Relayer participated. Moonwell holds ~1.92% of veAERO.
- Governance/infra roadmap
- Considering migrating Governor to Base (Moonbeam markets will remain active).
- Backend automation upgrades for more reliable proposal execution.
- Exploring DEX price-anchor fallbacks to make oracles more resilient in the case of CeFi disruptions.
Governance Updates (0xMims @ Lunar Labs)
- New super delegates: Joel (public data dashboard + quarterly write-up) and Chidi (TradFi + DAO experience).
- Key metrics from Joel’s dashboard:
- TVL supply +29% (Q2 → Q3).
- Top-3 asset concentration down 76% → 63% (healthier diversification).
- Recruiting remains open; preference for contributors with transparent analysis and proven commitment.
- Echoed plan under consideration to move Governor to Base while keeping Moonbeam markets live.
Risk Updates & Oct 10th Market Event (Chris @ Anthias)
- What happened on Oct 10th (per Anthias): Macro tariff news sparked panic; Binance order books (used for some asset pricing) saw thin liquidity and local de-pegs. Oracles over-weighted Binance, underpricing several alts vs DEX.
- Exploit path: Attacker flash-loaned USDC/cbBTC, borrowed underpriced VIRTUAL/MORPHO/AERO, sold on DEX, repaid flash loans, and repeated (~25 txs; often ~$100k per flash).
- Result: ~$1.7M bad debt (mostly VIRTUAL); attacker profit ≈ 267 ETH.
- Similar patterns hit Aave, Venus, and other protocols.
- Why liquidations failed: Prices snapped back while oracles lagged → liquidations unprofitable.
- Immediate mitigation: Borrow caps reduced/borrows paused on affected alts.
Monthly Recommendations
- Base: Anthias recommended a decrease in cbXRP’s Reserve Factor and increase in EURC’s Reserve Factor. They also included changes to the IR parameters of USDC and EURC (increases in Multipliers). Risk-off for VIRTUAL, MORPHO, AERO: lower borrow caps (borrows effectively paused).
- Optimism Mainnet: The main notable changes on OP Mainnet included adjustments to USDC’s, USDT’s, and USDT0’s IR parameters (increases in Multipliers).
- Moonbeam: There were no parameter recommendations for Moonbeam.
- Moonriver: There were no parameter recommendations for Moonriver.
Community Q&A Highlights (Luke)
- Proposed remediation approach: cover bad debt from protocol reserves (ETH/USDC) via weekly TWAP buys of VIRTUAL/MORPHO over the next few months.
- Pros: avoids safety-module haircut or selling WELL at depressed prices.
- Trade-off: temporarily smaller reserve auctions → lower staking rewards during this process.
- Oracles: Keep Chainlink, but add DEX price-anchor bounds/fallbacks to avoid CeFi-driven mispricing.
- Q1: Has the ~$1.7M bad debt been repaid? Impact on staking?
- A: Not yet. Plan is reserve-funded TWAP repayment over months; staking rewards will be smaller during this period. Prefer reserves vs. haircuts or WELL sales.
- Q2: If revenue increases, does staking APR/buybacks scale? Annual buybacks?
- A: Yes. More borrow demand + vault performance fees → larger reserve auctions → higher APR. Monthly dynamic auctions beat annual buybacks given our automation.
- Q3: Why a separate Mamo token?
- A: WELL governs the core protocol. MAMO is a utility token for the agent platform; 100% of platform fees accrue to MAMO holders. Roadmap broadens fee streams as agentic finance expands.
- Q4: Merkl & proposal execution issues?
- A: Merkl remains the safety module rewards mechanism (lets us reward multiple activities). Building a staked-WELL isolated market so users can borrow against stkWELL while retaining governance + rewards. Governance automation is moving from OZ Defender → Gelato; Governor migration to Base will also cut cross-chain latency.
- Q5: Positioning for a potential Base token launch?
- A: Moonwell’s day-one presence and organic user base on Base position it well. Plan to open-source ecosystem vault tooling and publish a case study so creators can borrow against (rather than sell) their tokens, capturing creator & app flows via Moonwell + Mamo.
Action Items & Dates
- Proposal to authorize reserve-based TWAP remediation for VIRTUAL/MORPHO/AERO bad debt
- Gelato migration & prepare Governor-to-Base migration proposal.
- Share the November Q&A Google Form on forum/X.
- Next Governance Call: November 27th, 2025