Treasury Fund Usage from Deprecated Aera V2 Apollo Vault

Ideation & Discussion
1

Summary

Following the wind-down of Moonwell’s Moonriver deployment, the Moonwell Apollo Treasury is no longer required for its original purpose. As part of this transition and the broader deprecation of legacy Aera V2 vaults, approximately $250–312k USDC remains held in a Moonwell Apollo Treasury vault.

These funds were historically associated with Apollo / MFAM reserves and have since remained idle. This discussion seeks community input on the appropriate custody and high-level use of these funds before the vault is unwound. The objective here is to ensure transparency and establish a clear mandate prior to execution, with the intent to quickly to a Snapshot vote.

Background

Moonwell is in the process of deprecating Aera V2 vaults. One remaining Aera V2 vault contains USDC originally associated with the Apollo/Moonriver Treasury. While these funds are part of the Moonwell ecosystem, their origin warrants explicit governance direction, and, given the recent direction the protocol has taken in the deprecation of Moonriver, there is an opportunity to redistribute these funds elsewhere. As a result, it might be advantageous to open discussion and proceed to a snapshot vote on moving these funds into areas that are of higher priority: bad debt, incentives, etc. Ultimately, the goal of this discussion is to see communal clarity on what should be done with the funds from these vaults.

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Source: https://app.aera.finance/vaults/polygon:0xd646bc0795bf85aba3e8a29de8fb3a2731f25a57

Proposed Options for Discussion

The following options are presented for community consideration. A snapshot vote reflecting these options would follow this discussion period. If any other users have additional ideas, please discuss them here.

  1. Distribute funds to MFAM stakers

    • Returns value directly to historical Apollo stakeholders.

  2. Transfer funds to Moonwell DAO custody to repay outstanding bad debt on the Base deployment

    • Improves protocol balance sheet health.

    • Uses funds in support of a current product in growth.

  3. Transfer funds to Moonwell DAO custody for use in future liquidity incentive campaigns

Discussion Questions

  • Which of the above options best reflects appropriate stewardship of these funds?

  • Are there material considerations or risks not captured in the proposed options?

  • Do you believe there are options not being considered here?

4 Likes
2

Thanks for the post, @coolhorsegirl. I’m actually a rather large MFAM staker myself as I haven’t sold my founder allocation and I farmed a significant amount of it over the years on both Solarbeam and Moonwell. From a pure selfish perspective, as an MFAM holder I might like to see the rewards go to MFAM stakers.

However, that being said, I think it is in the best interest of the Moonwell DAO and protocol as a whole to redirect the funds to accelerate the repayment of the remaining bad debt on Base and OP mainnet. This is just my humble opinion, but it seems better for the long term health of the Moonwell protocol. I understand why many MFAM holders might feel differently though, so I’d love to hear your thoughts.

1 Like