Monthly Governance Calls

[Boardroom]

Monthly Governance Call ­– September 2025 Recap

Call Recording

Welcome & House-Keeping

• Moderator: Alex (Boardroom)
• Speakers: Luke & Darren (Lunar Labs), Chris (Anthias)
• Alex announced Boardroom’s upcoming delegation of 200k WELL to Chidi for Third-Party Opportunities & Research role (bringing total remaining delegation capacity to 2.0M/3.4M WELL)

Moonwell Core Contributor Updates (Luke @ Lunar Labs)

• Office expansion & team growth
  • New office in Walnut Creek (Bay Area) with capacity for 20 employees
  • Planning San Mateo office (90 desks) next to Roblox HQ
  • Hired Sherzod (Lead Designer, ex-Coinbase/Lyft) to unify Moonwell & Mamo
  • Currently interviewing world-class smart contract engineers
• Credit facility innovation
  • Created a DeFi credit facility using Morpho Vaults & Markets
  • Lunar Labs borrowing USD against WELL to enable growth without selling tokens; signals long-term commitment
  • Proposal coming: Moonwell Ecosystem Vault (meUSDC) - public credit facility with 0% performance fee
• Product roadmap
  • Mamo: 100k active users, $50M TVL (among the highest of any DeFi agent)
  • Coming: Ethereum accounts, Mamo web experience, Base app Mamo integration
  • Future: Staked WELL borrowing market (retain governance rights + staking rewards while borrowing)
  • Vision: Capture 2-3% of all Base trading fees through Mamo

Governance & Community Proposals (Darren @ Lunar Labs)

• MAMO listing temperature check
  • Passed Halborn audit with no outstanding issues
  • Meets risk assessment parameters (liquidity, swap size testing)
  • Chainlink price feed expected by end of month/early October
  • Seeking delegate collaboration for proposal

Risk & Parameter Updates (Chris @ Anthias)

• Base: Anthias recommended an increase in Supply Caps for weETH, cbXRP, and WELL, as well as an increase in the Borrow Cap for WELL. They also included changes to the IR parameters of USDC.
• Optimism Mainnet: The main notable changes on OP Mainnet included an increase in VELO’s supply cap and adjustments to USDT’s and USDC’s IR parameters.
• Moonbeam: There were no parameter recommendations for Moonbeam.
• Moonriver: There were no parameter recommendations for Moonriver.

Community Q&A Highlights

• Long-term focus on product quality and bullish regulatory tailwinds
• Luke supportive of partnership ideas; the community can connect with Dani (LatAm Growth Lead)
• Token economics: Legal constraints prevent direct buy-back-and-burn. Alternative approaches: locking treasury WELL in credit facilities, reducing emissions after June 2026. Future grants potentially from bought-back tokens vs. new issuance.

Action Items & Dates

1. Moonwell Ecosystem Vault (meUSDC) proposal going live
2. MAMO/USD Chainlink price feed (end of September/early October)
3. Next Governance Call: Thursday, October 30th 2025

Call Recording

[Boardroom]

Monthly Governance Call ­– October 2025 Recap

Call Recording

Welcome & House-Keeping

• Moderator: Alex (Boardroom)
• Speakers: Luke & Darren/0xMims (Lunar Labs), Chris (Anthias)
• New Call Structure: Q&A sourced from a Google Form shared before each call.

Core Contributor Updates (Luke @ Lunar Labs)

• Basecamp & Base token
  • Coinbase is exploring a Base network token aimed at rewarding meaningful creation/use (creators, apps, active users). Timing likely not in 2025; expect thoughtful, multi-phase design.
• Coinbase retail onchain swaps
  • Coinbase is rolling out in-app swaps for Base assets. Mamo is already market-making 19 pairs, positioning to capture fees as retail volume ramps.
• Aerodrome launches
  • Recent launches (LITKEY, Syndicate) performed well for veAERO voters; Moonwell/Relayer participated. Moonwell holds ~1.92% of veAERO.
• Governance/infra roadmap
  • Considering migrating Governor to Base (Moonbeam markets will remain active).
  • Backend automation upgrades for more reliable proposal execution.
  • Exploring DEX price-anchor fallbacks to make oracles more resilient in the case of CeFi disruptions.

Governance Updates (0xMims @ Lunar Labs)

• New super delegates: Joel (public data dashboard + quarterly write-up) and Chidi (TradFi + DAO experience).
• Key metrics from Joel’s dashboard:
  • TVL supply +29% (Q2 → Q3).
  • Top-3 asset concentration down 76% → 63% (healthier diversification).
• Recruiting remains open; preference for contributors with transparent analysis and proven commitment.
• Echoed plan under consideration to move Governor to Base while keeping Moonbeam markets live.

Risk Updates & Oct 10th Market Event (Chris @ Anthias)

• What happened on Oct 10th (per Anthias): Macro tariff news sparked panic; Binance order books (used for some asset pricing) saw thin liquidity and local de-pegs. Oracles over-weighted Binance, underpricing several alts vs DEX.
• Exploit path: Attacker flash-loaned USDC/cbBTC, borrowed underpriced VIRTUAL/MORPHO/AERO, sold on DEX, repaid flash loans, and repeated (~25 txs; often ~$100k per flash).
  • Result: ~$1.7M bad debt (mostly VIRTUAL); attacker profit ≈ 267 ETH.
  • Similar patterns hit Aave, Venus, and other protocols.
• Why liquidations failed: Prices snapped back while oracles lagged → liquidations unprofitable.
• Immediate mitigation: Borrow caps reduced/borrows paused on affected alts.

Monthly Recommendations

• Base: Anthias recommended a decrease in cbXRP’s Reserve Factor and increase in EURC’s Reserve Factor. They also included changes to the IR parameters of USDC and EURC (increases in Multipliers). Risk-off for VIRTUAL, MORPHO, AERO: lower borrow caps (borrows effectively paused).
• Optimism Mainnet: The main notable changes on OP Mainnet included adjustments to USDC’s, USDT’s, and USDT0’s IR parameters (increases in Multipliers).
• Moonbeam: There were no parameter recommendations for Moonbeam.
• Moonriver: There were no parameter recommendations for Moonriver.

Community Q&A Highlights (Luke)

• Proposed remediation approach: cover bad debt from protocol reserves (ETH/USDC) via weekly TWAP buys of VIRTUAL/MORPHO over the next few months.
  • Pros: avoids safety-module haircut or selling WELL at depressed prices.
  • Trade-off: temporarily smaller reserve auctions → lower staking rewards during this process.
• Oracles: Keep Chainlink, but add DEX price-anchor bounds/fallbacks to avoid CeFi-driven mispricing.
• Q1: Has the ~$1.7M bad debt been repaid? Impact on staking?
  • A: Not yet. Plan is reserve-funded TWAP repayment over months; staking rewards will be smaller during this period. Prefer reserves vs. haircuts or WELL sales.
• Q2: If revenue increases, does staking APR/buybacks scale? Annual buybacks?
  • A: Yes. More borrow demand + vault performance fees → larger reserve auctions → higher APR. Monthly dynamic auctions beat annual buybacks given our automation.
• Q3: Why a separate Mamo token?
  • A: WELL governs the core protocol. MAMO is a utility token for the agent platform; 100% of platform fees accrue to MAMO holders. Roadmap broadens fee streams as agentic finance expands.
• Q4: Merkl & proposal execution issues?
  • A: Merkl remains the safety module rewards mechanism (lets us reward multiple activities). Building a staked-WELL isolated market so users can borrow against stkWELL while retaining governance + rewards. Governance automation is moving from OZ Defender → Gelato; Governor migration to Base will also cut cross-chain latency.
• Q5: Positioning for a potential Base token launch?
  • A: Moonwell’s day-one presence and organic user base on Base position it well. Plan to open-source ecosystem vault tooling and publish a case study so creators can borrow against (rather than sell) their tokens, capturing creator & app flows via Moonwell + Mamo.

Action Items & Dates

1. Proposal to authorize reserve-based TWAP remediation for VIRTUAL/MORPHO/AERO bad debt
2. Gelato migration & prepare Governor-to-Base migration proposal.
3. Share the November Q&A Google Form on forum/X.
4. Next Governance Call: November 27th, 2025

Call Recording

[Boardroom]

Monthly Governance Call ­– December 2025 Recap

Call Recording

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

1. Governance proposal next week to withdraw ETH revenue (via audited WETH unwrapping) for continued bad debt remediation.
2. Roll out oracle upgrades (OEV and related improvements) across isolated and core markets.
3. Community discussion and proposal work on governor migration (Base vs. Ethereum mainnet).
4. Moonriver: remain in withdraw/repay-only mode; users should unwind positions.
5. Vote on the current Anthias parameter recommendations.
6. Coinbase event on December 17: community encouraged to tune in.
7. Next Governance Call: Thursday, January 29.