Monthly Governance Call – July 2026 Recap
Welcome & House-Keeping
- Moderator: Alex (Boardroom)
- Speakers: Luke and Darren/0xMims (Lunar Labs), Chris (Anthias)
- Quick overview: This month’s call was pushed back one week (from July 30th to August 6th), returning to the usual last-Thursday cadence in August. July was an unusually busy month driven by the sudden Moonbeam sunset; every proposal that went to a vote during the month cleared quorum by roughly 1.5–2x.
Moonwell Core Contributor Updates (Luke @ Lunar Labs)
- Moonbeam & Moonriver wind-down: Moonbeam announced its sunset with less than a month’s notice, but Moonwell was prepared. Luke framed this as the payoff for migrating governance to Ethereum mainnet and spending the first half of 2026 reducing infrastructure-dependency risk during the bear market. The community wound down both Moonbeam and Moonriver successfully.
- Reserve redirection: protocol revenue from the deprecated Moonbeam and Moonriver deployments (~six figures) was redirected toward remediating users impacted by the cbETH incident and shoring up the protocol on Base.
- Ethereum growth: the four Ethereum mainnet markets are live and seeing dramatic increases in both supply and borrow volume.
- What’s next: Luke previewed expansion research, including Robinhood Chain, Circle’s Arc network (live September 16th), and tokenized real-world assets, with more detail in the Q&A.
Upcoming Proposals & Governance Updates (Darren/0xMims @ Lunar Labs)
- Call for forum input; Darren reinforced Luke’s message, urging the community to post feedback in the forums on new chains to expand to (an Arc-expansion discussion is already live) and new assets to list on Ethereum mainnet. He noted the bear market makes it easier to cut through hype and evaluate durable opportunities.
Risk & Parameter Updates (Chris @ Anthias)
- wrsETH wind-down: Collateral factor decreased from 52% → 46% on Base and from 68% → 46% on OP Mainnet.
- Moonbeam: Given the sudden sunset, collateral factors were reduced to 0 across all markets.
- Ethereum mainnet: Interest rate parameters updated to target ~6% borrow rate at the kink.
- Bad debt: Over 99% of protocol bad debt sits on Base, concentrated in the cbETH, cbXRP, and VIRTUAL markets (per-market totals are in the governance forum’s weekly updates). It is currently being covered by monthly protocol reserves, which have run just under ~$40K/month over the past three months (with month-to-month fluctuation). For the bear case, Anthias expects protocol reserves alone to absolve all outstanding bad debt within roughly ~24 months as the protocol grows and revenue increases.
Community Q&A (facilitated by Darren; answered by Luke)
- Low-hanging wins for Moonwell? Two big ones: (a) lending against tokenized stocks, unblocked by Chainlink moving stock price feeds from 24/5 to 24/7 (leveraging perp-DEX pricing), building on Moonwell’s ~5-year Chainlink partnership; and (b) a new “boosted USDC” account for the Mamo agent that supplies USDC into Moonwell, borrows BTC/ETH, and LPs on Aerodrome before auto-compounding back into USDC, targeting a high-two-digit APY (with higher figures seen in testing, dependent on market conditions).
- Launch on Robinhood, Arc, or Tempo — could Moonwell compete with Aave on Arc? Luke favors cautious, data-driven expansion. New ecosystems generate early meme-coin hype, so he wants to see durable volume and lending demand at the 30–60-day mark before committing, and acknowledged that competing with Aave and Morpho on Arc will be challenging.
- A curated USDG / Moonwell USDC vault on Robinhood Chain for tokenized equities? Yes — the blocker remains 24/7 Chainlink feeds. Best current onchain liquidity is in Nvidia, Apple, and the S&P 500 (SPY), and the team is also watching Coinbase bring tokenized stocks to Base.
- Thoughts on the Ethereum issuance debate? No strong opinion; Luke doesn’t see reducing issuance as Ethereum’s priority right now, noted it could harm solo stakers, and doubts the EIP advances far given negative sentiment.
- Other ecosystems besides Base? Possibly. A compelling long-term opportunity is a Mamo auto-rebalancing tokenized-stock basket (e.g., tech or AI baskets), which could bring Mamo to new chains, but near-term focus is launching boosted USDC on Base, then evaluating tokenized stocks on Base.
Action Items & Dates
- Post feedback in the forums on chain expansion (Robinhood Chain, Arc) and new Ethereum mainnet asset listings.
- Watch for the Google Form link (posted in ~2 weeks) to submit questions for the next call’s Q&A.
- Next Governance Call: Thursday, August 27th, 2026 (last Thursday of the month).