Monthly Governance Call – January 2026 Recap
Welcome & House-Keeping
- Moderator: Alex (Boardroom)
- Speakers: Luke & 0xMims (Lunar Labs), Chris (Anthias), and community Q&A
- Quick overview:
- January governance was relatively light, mainly centered on Moonriver collateral factor reductions and completing the Moonriver wind-down.
- Super Delegate program: no changes to delegation positions this month. Newly onboarded Super Delegates (Jor-el, Chidi, Fechuky) are now fully onboarded; all five Super Delegate slots are full for the time being.
- Jor-el posted a new data/report on Base core market risk on the forum.
Moonwell Core Contributor Updates (Luke @ Lunar Labs)
- Moonriver wind-down complete
- Moonriver markets were deprecated due to Chainlink price feed deprecations.
- Users can still withdraw and close positions; reminder to check old wallets and withdraw assets if applicable.
- Morpho vault improvements
- Plan to migrate to Morpho V2 vaults to capture higher reward rates while keeping the user experience largely the same.
- Governance proposal planned to transition vault risk curator role to Anthias to unify risk oversight across core markets and vaults and reduce cost for the DAO.
- Governor migration and Ethereum mainnet expansion
- Engineering work underway to migrate the multichain governor from Moonbeam to Ethereum mainnet.
- Rationale: Ethereum mainnet provides maximum economic security and enables a Moonwell mainnet market launch (targeted for March, pending audits and governance approvals).
- Requested community input on which mainnet assets should be supported first (initially targeting blue-chip assets).
- Commentary on mainnet costs: recent upgrades have made mainnet transactions materially cheaper than prior years, improving feasibility.
- Cards initiative
- Working on a new Moonwell card and Mamo card (Visa), targeted for March.
- Goal: expand issuance to all 50 U.S. states and several Latin American countries, add cashback or reward mechanics, and create a new revenue stream for the DAO via interchange fees.
- Team updates
- Added a North America growth lead (Alex) and additional engineering capacity.
Governance & Community Proposals (0xMims @ Lunar Labs)
- January proposals and actions
- MIP-B55: vaults incentives cycle (Jan 16 to Feb 2); next incentives proposal expected soon.
- Moonriver wind-down sequence (progressive collateral factor reductions)
- R36: collateral factor reduction from 25% to 15%
- R37: collateral factor reduction from 15% to 7.5%
- R38: full wind-down from 7.5% to 0%
- Upcoming governance
- Proposal expected for vault ownership / risk curator migration to Anthias.
Risk & Parameter Updates (Chris @ Anthias)
- Base: Borrow Caps for wstETH and cbETH were decreased, while WELL’s Borrow Cap was increased (reduce tail-risk surface area for low-demand borrowed assets; expand where organic demand exists)
- Optimism Mainnet: Borrow Caps for wstETH and rETH were decreased; cbETH’s Supply Cap was decreased (due to effectively no DEX liquidity on OP Mainnet)
- Moonbeam: There were no parameter recommendations for Moonbeam.
- Moonriver: Collateral factors for MOVR, xcKSM, and FRAX were all decreased as part of a phased wind-down.
Community Q&A Highlights
- WELL rewards from the Moonwell Credit Facility
- Question: what happens to WELL earned as incentives by credit facility depositors?
- Answer: Lunar Labs has been claiming incentives and re-posting WELL as collateral rather than selling it; open to feedback on whether certain addresses should be excluded from incentives in the future.
- Bad debt status and progress
- Question: how much bad debt exists and what has been paid down?
- Answer from Chris:
- Bad debt on Base was cited at ~4.8M, concentrated primarily in cbXRP and VIRTUAL.
- Protocol reserves cited at ~2.3M, with ~2.0M already moved/swapped into the impacted markets to partially cover shortfalls and more planned as reserves accrue.
- Product and UI convergence
- Question: will Moonwell and Mamo converge into one interface?
- Answer: near-term approach is progressive convergence, bringing select Moonwell capabilities into the simpler Mamo experience while keeping the full-feature Moonwell app for power users. Longer-term intent is a unified experience, but not at the cost of removing core functionality like borrowing.
- U.S. market structure bill / Clarity Act discussion
- Luke’s take: two Senate committee markups appear to be converging, with one version viewed as more favorable to crypto/DeFi than the other.
- Key concern raised: language that could treat pause-able protocols as more centralized, potentially creating compliance burden for DeFi.
- Pros: developer protections for open-source wallet and infrastructure builders.
- Outlook: uncertain path due to political tradeoffs, including debate around ethics provisions tied to public officials’ token launches.
Action Items & Dates
- Vote on the governance proposal to transition vault risk curation to Anthias.
- Watch for Morpho V2 vault deployment updates in the coming weeks.
- Track governance proposals related to migrating the multichain governor to Ethereum mainnet and launching Moonwell on mainnet (targeted for March, pending audits and governance approvals).
- Watch for new Moonwell and Mamo Visa card updates.
- Next incentives proposal expected soon (following the Jan 16–Feb 2 cycle).