Monthly Governance Calls

[Boardroom]

Monthly Governance Call – May 2026 Recap

Call Recording

Welcome & House-Keeping

• Moderator: Alex (Boardroom)
• Speakers: Luke and Darren/0xMims (Lunar Labs), Chris (Anthias)
• Quick overview:
  • A full slate of speakers and five community questions were addressed in a dedicated Q&A section.

Moonwell Core Contributor Updates (Luke @ Lunar Labs)

• Potential Ethereum Mainnet launch
  • Moonwell is launching on Ethereum Mainnet on Monday afternoon (US time), pending passage of the activation proposal (MIP-E00).
  • Launch is with a conservative initial set of four markets: ETH, cbBTC, USDC, and USDT — informed by the risk-off posture across Ethereum DeFi.
  • The launch caps roughly six months of engineering work and introduces the new multi-governor on Ethereum Mainnet, bringing three key benefits:
    1. Economic security of Ethereum — Moonwell governance is now secured at the protocol level by Ethereum’s market cap.
    2. More complex proposals — proposals previously hit limits around 150–200 actions due to Ethereum transaction size; the new multi-governor allows proposals to be executed in multiple steps, enabling more complex single proposals.
    3. IPFS proposal text — proposal text can now be stored and pinned on IPFS, removing prior size constraints tied to transaction limits.
• Closing reflection, building through the bear market
  • Luke framed the first six months of the year as foundational work, including emergency upgrades after Wormhole shut down its relayers and the new best-in-class governance system migrating to Ethereum Mainnet. He noted that the teams that survive a bear market are the ones that keep building through it.

Governance & Community Proposals (Darren/0xMims @ Lunar Labs)

This month’s proposals were largely focused on bringing governance to Ethereum:

• MIP-X55: Enabled WELL to be bridged to Ethereum Mainnet.
• MIP-E00: The ongoing activation proposal covering the full Ethereum Mainnet launch, including initial market parameters.

Risk & Parameter Updates (Chris @ Anthias)

For markets where over 90% of total borrows are toxic positions, three changes were applied — reserve factor increased to 99% (routing all borrow interest to reserves), borrow cap decreased to effectively disable new borrows, and the interest rate curve flattened to a fixed 1% base rate (no longer varying with utilization). Existing borrowers lock in a low rate; bad debt interest accrual is halted.

• Base: Applied to VIRTUAL, cbETH, and cbXRP.
• Moonbeam: Applied to GLMR.

cbETH remediation update:
The next risk parameter proposal will couple in reserve recommendations:

• Pull from reserves to repay some markets carrying bad debt.
• Use excess reserves (currently mostly held as cbBTC) — pulling ~1.45 cbBTC, swapping it to WETH, and distributing to users affected by the cbETH incident.
• An additional ~10 ETH recovered from law enforcement will also be distributed to affected users.
• Details are in the forum post.

Community Q&A Highlights

• Moonwell card status & institutional strategy
  • Card: The team has spent recent months evaluating card providers with the goal of re-enabling US issuance (the current product works for non-US users and existing pre-cutoff cards, but new US cards can’t be issued). The goal is issuance across as many geographies as possible (US, Europe, Latin America, and Asia Pacific) with better/lower fees or cashback. Design contributors have strong front-end designs for a unified in-app experience for both Moonwell and Mamo.
  • Institutional: Moonwell now has a head of growth based in New York working with institutions on strategies including LPing into vaults and markets. Existing partnerships (e.g., Harvest and others) already deposit several million in TVL. Still early; many TradFi institutions are working through compliance before depositing, but Moonwell’s track record as a trusted Base vault curator is a strong foundation.
• Biggest DAO focus areas post-Mainnet launch
  • Liquidity incentives: Luke would like to see a proposal (potentially mid-June, alongside the reward speed proposal) allocating a WELL grant from the Moonwell Foundation to seed a liquidity incentive campaign for the new Ethereum markets, creating an opportunity to capture TVL leaving other protocols.
  • New ecosystem expansion: For H2, Luke floated Circle’s ARC network, as well as Tempo and others. Community feedback requested on where to expand next.
• Listing precious metals
  • Luke would welcome tokenized gold/silver as collateral, but no good candidates with deep DEX liquidity currently exist on Base. Requirements remain a secure Chainlink-compatible price feed and sufficient DEX liquidity for successful liquidations. Community ideas welcome on the forum.
• WELL buybacks & staking APY
  • Buybacks remain paused while reserves are directed toward bad debt remediation and cbETH user restitution. Once those are addressed, the DAO would likely vote to resume buybacks. Luke pointed to Chris’ forum post for input, and noted the Mainnet expansion’s new revenue should help accelerate repayment and a return to seven-figure annual buybacks.
• agents.moonwell.fi vs. Mamo
  • Coinbase launched a Base MCP server this week, with Moonwell as one of the launch projects (alongside Aerodrome and others) that built agent skills for their protocols. Users can ask an agent to, e.g., deposit USDC into Moonwell, with approval/decline sent as a pop-up to the user’s Base wallet, so the agent never holds private keys.
  • Luke clarified agents.moonwell.fi does not replace Mamo. Mamo serves a different use case — a fully managed personal finance companion for people who don’t want to set up their own agent (OpenClaw, Hermes, Claude, etc.). The new agent surface and Mamo are complementary, serving different categories of users. Moonwell also previously launched an OpenClaw skill for Mamo.
  • Note: Coinbase is running a $2,000 contest for videos demonstrating the Base MCP server. Community members can submit videos on X using the Moonwell skill.

Action Items & Dates

1. Vote on MIP-E00 to activate Moonwell on Ethereum Mainnet (will activate Monday afternoon US time if it passes).
2. Provide feedback on potential H2 ecosystem expansion targets (e.g., Circle’s ARC, Tempo) on the forum.
3. Watch for a potential liquidity incentive campaign proposal in mid-June for the new Ethereum markets (if MIP-E00 passes)
4. Review Chris’s forum post on cbETH remediation and reserve recommendations.
5. Watch for the monthly and quarterly governance reports in the forums this weekend.
6. Next call: Thursday, June 25th.