Monthly Governance Call – December 2025 Recap
Welcome & House-Keeping
- Moderator: Alex (Boardroom)
- Speakers: Luke & 0xMims (Lunar Labs), Chris (Anthias), and community Q&A
- Quick overview: End-of-December call canceled for the holidays; the next call returns to the last Thursday of the month schedule: Thursday, January 29.
- Delegation initiative: Chidi, Jor-El, and Fechuky received endorsements and have met the requirements to become Super Delegates. Onboarding with the Moonwell Foundation is next, which will fill the five available Super Delegate slots for now. Community members are encouraged to pursue junior or mid-tier delegate roles; see governance docs for requirements.
Moonwell Core Contributor Updates (Luke @ Lunar Labs)
- Bad-debt remediation status
- After governance authorized use of reserves, USDC revenue was used to repurchase VIRTUAL and offset bad debt.
- ETH reserves will also be used once an audited WETH “unwrapper” contract is in place; the audit completed this week and a proposal is expected next week.
- Repayment is being prioritized in VIRTUAL and cbXRP given higher interest rates. Lower altcoin prices recently helped accumulate VIRTUAL at favorable prices before re-supplying to the market.
- Unified Moonwell × Mamo roadmap
- North Star: a unified agentic finance platform that merges Moonwell’s reliability with Mamo’s social, personalized, and gamified UX; a single intelligent financial companion for saving, borrowing, investing, and spending via a conversational interface.
- Core improvements: reserve auction enhancements for ETH markets have passed audit; moving to CAPO (correlated-asset) price feeds; researching DEX price anchors for oracle resiliency; OEV feed upgrades heading onchain soon.
- Community input requested on migrating the multi-chain governor to Base or Ethereum Mainnet. Voting on Base/OP Mainnet remains cheap; Mainnet governance could enable an Ethereum Mainnet Moonwell launch in early 2026
- Moonriver status: deployment is in withdraw/repay-only mode; users should unwind positions.
- Mamo product plans: Base app mini-app live; expansion to World Chain targeted.
Governance & Community Proposals (0xMims @ Lunar Labs)
- MIP-R32: Initiated wind-down on Moonriver as Chainlink deprecates price feeds; blocks new positions while allowing users to repay/unwind/exit.
- MIP-R33: Reduces Moonriver reward emissions to match lower activity during deprecation
- MIP-B52: Implements bad debt remediation from the 10/10 oracle event. Approximately 812,000 VIRTUAL covered so far (~$769k), roughly 25–30% of the total.
- Oracle upgrades for isolated and core markets are slated for next week.
Risk & Parameter Updates (Chris @ Anthias)
- Base: Reserve factors for AERO, VIRTUAL, and cbXRP were all increased. The collateral factor and supply cap for tBTC were both decreased. VIRTUAL’s IR parameters were also recommended to be adjusted (slight increase in kink).
- Optimism Mainnet: weETH supply cap and borrow cap were both decreased given the asset’s decreased DEX liquidity on the network.
- Moonbeam: There were no parameter recommendations for Moonbeam..
- Moonriver: Collateral factors for MOVR, xcKSM, and FRAX recommended to be decreased as part of a phased wind-down.
Community Q&A Highlights
- WELL incentives from the Moonwell Credit Facility: WELL earned by Lunar Labs as deposit incentives has been retained and posted as additional collateral rather than sold. Feedback welcomed on excluding certain addresses (e.g., Lunar Labs, Moonwell Foundation) from future incentives to avoid conflicts.
- Bad-debt timeline and staking rewards:
- About $765k VIRTUAL was just repaid to the market, bringing total remediation to roughly 25–30%. Additional ETH-denominated repayments are planned. Pace depends on protocol revenue; OEV upgrades should help. Targeting completion in the first half of 2026.
- Staking rewards cap: not tied to bad debt. MIP-X37 proposes capping safety-module APR at 10% and holding excess bought-back WELL in reserves, which would make WELL effectively deflationary. Community feedback requested on balancing bad-debt pay-down vs. WELL buybacks.
- Preventing another October event:
- Move restaked ETH feeds to exchange-rate sources to avoid repeated mispricing.
- Research and adopt correlated-asset pricing safeguards and DEX price-anchor fallbacks when oracle prices diverge materially from onchain markets. Initial improvements targeted for Q1 2026.
Action Items & Dates
- Governance proposal next week to withdraw ETH revenue (via audited WETH unwrapping) for continued bad debt remediation.
- Roll out oracle upgrades (OEV and related improvements) across isolated and core markets.
- Community discussion and proposal work on governor migration (Base vs. Ethereum mainnet).
- Moonriver: remain in withdraw/repay-only mode; users should unwind positions.
- Vote on the current Anthias parameter recommendations.
- Coinbase event on December 17: community encouraged to tune in.
- Next Governance Call: Thursday, January 29.