Monthly Governance Reports

Announcements & Updates Updates
4

April 2024 Update

The monthly governance recap serves as a compendium of key governance updates for the preceding month. This update covers Moonwell governance activities for April 2024.

This update includes:

  1. Proposals, Updates, & Milestones
  2. Voting Insights & Observations
  3. Community Strengths
  4. Opportunities
  5. Conclusion & Links

Proposals and Updates

Moonwell’s primary governance initiatives for this period included:

  1. Risk Management and Parameter Adjustments: Gauntlet releases market recommendations that include MIPs to adjust important asset risk parameters (e.g. collateral factors and borrow caps) intending to balance risk and capital efficiency. On April 1, for example, Gauntlet submitted three MIPs based on this forum post for Moonwell’s Base, Moonbeam, and Moonriver deployments: MIP-B15, MIP-M25, and MIP-R15. Gauntlet also regularly used Cap Guardian to make changes to borrow/supply caps without the need for a governance proposal, as seen here. Similarly, Warden Finance contributed their risk analysis with a forum post “Rebalancing of Base Liquidity Incentives” to inform the community of various Base-related updates. Notably, the liquidity situation surrounding DAI and rETH circulating supplies has improved when compared to previous months.

  2. Final Stages of the xERC20 Implementation & Multichain Governance: Throughout March, multiple forum discussions and onchain votes took place to enable voting and staking from Base with native WELL. Three proposals related to multichain governance were passed in March: MIP-M21 (Upgrade Wormhole Bridge Adapter on Moonbeam) and MIP-M23/MIP-M24 (Multichain Governor and WELL migration). On the first day of April, @Elliot of Solidity Labs introduced MIP-B16 to enable rewards for users in the Safety Module with the new WELL token on Base. Staking rewards officially went live on April 11th.

  3. Reward Speed Proposals: In mid-April, delegate Curly submitted a pair of regular onchain proposals for Moonbeam and Moonriver. This type of proposal aims to rebalance liquidity incentives and maintain healthy levels of rewards on the two networks. They aren’t required on Base as Warden is serving as the incentives admin for Moonwell’s Base deployment. Both proposals passed their onchain votes and the reward speeds were adjusted accordingly.

  4. New Moonwell Market Proposal: Gauntlet, in mid-April, proposed to onboard AERO as collateral on Moonwell’s Base deployment. AERO is the native utility token of Aerodrome Finance, a next-generation AMM designed to serve as Base’s central liquidity hub. Ahead of a successful Snapshot vote, Gauntlet gave their initial risk recommendations, including supply/borrow caps and IR parameters. The Snapshot signal progressed to an onchain vote on April 29th.

Major Milestones Achieved:

  • Moonwell is PINK Galxe Campaign: Delegate Curly announced the launch of a Galxe campaign on April 6th. The campaign is centered around Moonwell’s grant of 1.2M $PINK tokens from the Moonbeam Foundation. Users can complete tasks and earn their share of the reward.

  • Bolstering FRAX Market Liquidity on Moonbeam: In mid-April, Solidity Labs announced the successful completion of MIP-M16. The end result of many months of effort, FRAX suppliers can now enjoy enhanced liquidity and improved market stability.

  • Based Voter Galxe Campaign: On April 12th, Moonwell launched a new campaign to encourage governance participation using the upgraded native WELL token on Base. To join, users are required to vote on at least one onchain proposal before May 10th, using native WELL on Base. Those who successfully mint the Based Voter NFT will be entered into a drawing. After one month, 20 winners will be randomly rewarded with $100 USDC each, resulting in a total prize pool of $2000.

  • Native WELL rewards on Base: Native WELL rewards on Base went live on April 19th. Previously, suppliers on Base have received Wormhole WELL tokens as rewards.

  • TVL: Following last month’s $100M milestone in Moonwell TVL on Base, that figure grew to $150M on April 23rd.

Voting Insights and Observations

Summary of governance participation trends in April:

  • 7 onchain proposals
  • 1 Snapshot proposal
  • 24 forum posts

For the observed period, the number of active voters for onchain proposals averaged 45, with a maximum of 100 and a minimum of 11.

Proposal Onchain votes
MIP-R15 11
MIP-M25 45
MIP-B15 42
MIP-B16 57
MIP-R16 17
MIP-M26 100

This month, there was a single Snapshot signal vote.

Proposal Offchain votes
Add AERO market to Moonwell on Base 86

This Snaphot proposal overtakes the previous maximum number of Snapshot voters, which occurred in February when a proposal for Gauntlet becoming Cap Guardian on Moonbeam managed to attract 51 voters.

Success Insights:

  • Onchain: The onchain proposals in April witnessed a 100% success rate.
  • Offchain: The single Snapshot proposal for April successfully passed with a high degree of consensus opinion, coming in at 94.09% agreement.

Browse all of the proposals here.

Community:

Community Strengths

April showed a strong voter turnout despite a wider market downturn. Although there were a few governance proposal resubmissions, the community stayed aware of short-notice changes and consistently showed up to reach quorum. Gauntlet’s Snapshot proposal saw the highest signal vote turnout in months and it beat the previous high by a wide margin. Similarly, a resubmission of MIP-M26 gathered 100 votes, which is on par with last month’s maximum of 105. Social account growth metrics are up across the board.

Opportunities

Going forward, there is an opportunity to expand the Based Voter Galxe governance incentive program into a wider, all-encompassing effort. Rather than solely encouraging a single voting metric (voting onchain) on a single network, the program’s scope could be increased to include all Moonwell deployments. Similarly, the qualifying voter actions could cover more ground. There is also an opportunity to transform Moonwell’s passive delegates into active delegates. Keep an eye out for forum posts related to these efforts sometime in May.

Conclusion

The April 2024 report highlights consistent contributor activity, sustained voter turnout, increasing social sentiment, new market proposals, the conclusion of the effort to bolster FRAX liquidity, and more. The community remains engaged and a voting quorum is consistently reached.

Be sure to attend the upcoming governance community call on Thursday, May 2nd at 5pm UTC in Discord to hear directly from Gauntlet and Solidity Labs on the above topics.

Links

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