Monthly Governance Calls

Announcements & Updates Updates
9

Governance Call Recap - Sep 5th, 2024

Agenda

  1. Introduction and Announcements from @boardroom
  2. Weekly Market Update from @gauntlet
  3. BASE/Moonbeam/Moonriver Recommendations from @gauntlet
  4. wrsETH Snapshot from @Hedged_Adi (Kelp DAO)
  5. superOETHb LST on Base from Origin Protocol

Meeting Notes:

  • @alex from Boardroom started the call with a brief introduction. The first update for this month surrounded Boardroom’s efforts shifting away from incentivization campaigns toward long-term, sustainable growth of all aspects of Moonwell governance. On one end, that will entail creating a revamped delegate onboarding process, and on another, there are plans for a community onboarding pipeline. The goal is to make it easier for new entrants coming to Moonwell to find the important things to know, whether they are joining as prospective delegates or community members. The second main point is the launch of one of those changes mentioned above: the new Delegate onboarding system. This structure is essentially a tiered, role-based system for new Moonwell Delegates to be onboarded through. The first role is Junior Delegate, the second is Delegate, and the third and final tier is Super Delegate. There are unique requirements to attain each role, and there are unique tasks for each type of delegate to complete. A Delegate Rush program will coincide with the launch of the new system to encourage newcomers to apply to be a delegate and progress through the roles on a fast-track. Be on the lookout for official announcements of these changes.
  • Sai from Gauntlet on Monthly Recommendations
    • Last week, Gauntlet offered their monthly recommendations on risk parameters across the four Moonwell deployments. He mentioned a possible deprecation of the USDbC market in the future. AERO is predominantly a supply market, so he discussed their recommendation to increase supply caps. On Optimism, Sai touched on the risk-off measures taken surrounding WBTC; we are roughly 20 days before the joint venture between BitGo and BiTGlobal formalizes, so they are expecting volatility in the market (e.g. many people swapping wBTC for other assets). Finally, for Moonbeam and Moonriver, he discussed the ongoing narrative of decreasing TVL across those two chains.
      • Base: Both supply and borrow caps for AERO were increased. Collateral Factors for WETH, cbETH, wstETH, and rETH were increased while the Collateral Factor USDbC was decreased. The Reserve Factor for USDbC was increased. IR parameters were recommended to be adjusted: AERO (increased Jump Multiplier) and USDC (decreased Multiplier).
      • Optimism: WBTC Borrow Cap was decreased, WBTC Reserve Factor was increased, and WBTC Collateral Factor was decreased. IR parameters were recommended to be adjusted: USDC (increased Kink, decreased Multiplier, and increased Jump Multiplier), USDT (increased Kink, decreased Multiplier, and increased Jump Multiplier), and DAI (increased Kink, decreased Multiplier, and increased Jump Multiplier).
      • Moonbeam: Borrow caps for USDC.wh, xcDOT, WETH.wh, and FRAX were decreased. Collateral Factors for USDC.wh, WETH.wh, WBTC.wh, and FRAX were decreased. One IR curve was recommended to be adjusted: FRAX (decreased Kink and increased Multiplier).
      • Moonriver: Borrow caps for WMOVR and FRAX were decreased.
  • Sai from Gauntlet on the Weekly Market Update
    • This Tuesday, Gauntlet posted their weekly market update.
      • Base: Three assets had an average borrow/supply cap usage of over 75%: AERO (87.28% supply cap and 83.01% borrow cap), USDbC (90.06% supply cap), and rETH (75.20% supply cap). The deployment had $71,068.08 in liquidations across five assets in the past week: mAERO ($69.83k), mwstETH ($806.55), mWETH ($429.11), mDAI ($1.50), and mUSDC ($0.92).
      • Optimism: No asset had an average utilization greater than 75%. No liquidations were reported.
      • Moonbeam: No asset had an average utilization greater than 75%. The deployment had $3.37k in liquidations from one asset in the past week: mGLMR.
      • Moonriver: One asset had an average utilization greater than 75%: FRAX (83.10%). The deployment had $552.96 in liquidations from one asset in the past week: mMOVR.
  • Kelp DAO on wrsETH Markets on Base and Optimism
    • Aditya from Kelp DAO created a forum post one month ago with the intention of adding the protocol’s liquid restaking token (LRT), wrsETH, to the Moonwell markets on Base. Kelp DAO is a liquid restaking protocol built on top of EigenLayer; users can stake and restake on the platform to earn rewards and DeFi yields. On August 28th, the proposal went up for a Snapshot vote, but was defeated. On the call, Aditya and Soufia made the case for the community to consider voting for a future Snapshot due to one large wallet comprising most of the “nae” votes on the previous proposal. He finished by inviting feedback from anyone who voted for or against the proposal so that any issues could be resolved before the next proposal goes live.
  • Origin Protocol on superOETHb
    • Peter, business development at Origin Protocol, came on the call to give an intro to the protocol and discuss superOETHb, a new LST on Base network. He first gave an overview of the long history of the protocol; super OETH is essentially a new iteration of an older product developed by Origin. This class of LST is meant to be lower risk than restaking, but provide higher yield than staking alone. How it works: it combines liquid staking yield on L1 with compounded rewards on L2 through Aerodrome on Base (and Velodrome on Optimism for superOETHo). Protocol-owned liquidity (POL) is meant to ensure a 1:1 ETH peg. In the future, there may be a proposal to add a market for the asset on Moonwell.

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Be sure to attend the next call on the first Thursday of October!

We host calls on the first Thursday of every month, 17:00 UTC.
Next Call: October 3rd, 2024.