If we were to give additional features to WELL it would increase the usage of the token and possibly the project’s TVL. I would like to discuss this. Will it be good for the project or bad?
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Hey Metod,
Thanks for the question. There are multiple reasons why introducing WELL as collateral is out of scope right now:
- No oracle price feed is available for the asset.
- Even if an oracle price feed was available, asset would be too illiquid as it is right now to be onboarded as collateral.
Hope this helps!
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Hi !
Thanks for explaining !
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Hi @WardenFinance , sorry to necro an old thread but I wonder if this is worth revisiting. Liquidity on the WELL token has increased significantly since last year and on Base my understanding is that Moonwell supports lending limits, so we would be able to introduce just as much as the token’s risk profile allows for.
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I’m also very interested to know if the current conditions for using WELL as collateral have been met. I remember there were several conditions mentioned for launching a new market, and I believe the liquidity requirement has indeed been fulfilled. However, I just checked Chainlink price feeds and did not see WELL token listed on Base. If this is the case, I would like to ask contributors or community members how we can get Chainlink to add WELL to their price feeds.
Currently, aside from the safety module and governance, WELL lacks other utilities. We should attract more people to hold WELL rather than selling it immediately after claiming rewards.
Extra Finance provides lending for WELL, and many people have borrowed WELL to earn high yields on the WELL and WETH trading pair on Aero. This indicates there is a high demand.
So I believe that if WELL can be used as collateral, it would not only increase TVL but also promote the utilization of WELL, improve the capital efficiency for WELL holders, and provide a new way to earn yields aside from participating in the safety module, without being restricted by the cooling-off period.
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Good point - we really need more ideas for WELL use case. Being able to use it as a collateral is one although, the staking to back the protocol is a huge advantage of Moonwell, and something that we would need to continue to support.
We can consider a staking mechanism + lock (similar to veTokens) where users can stake and lock for 1-4 years where it gives users more APY on WELL + supplied assets.
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Here are some things to consider, and why WELL hasn’t been listed previously, but I believe could be now.
- The WELL token a year ago had very modest liquidity on Moonbeam. Since launching on Base however, WELL liquidity has skyrocketed.
However, I don’t believe WELL has sufficient daily volume to qualify for a CL price feed. So the first question to ask is, would Moonwell consider another reputable Oracle provider such as API3.
- Another reason WELL wasn’t listed on Moonbeam, is (and correct me if I’m wrong) the Moonwell instance on Moonbeam doesn’t have the ability to limit lending. This is important to avoid a CRV type of situation, where a whale could deposit a massive amount of WELL and borrow against it (more than the market could bear if he were liquidated) with no intention to pay it back.
This is a risk with any governance token, but note that VELO is proposed as an asset on Optimism, so they are open to it.
However, on Base Moonwell IS able to limit deposits. So we would just need to work with Moonwell’s security partners to determine what that limit would need to be.
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Hey Ogre!
If you’re passionate about seeing WELL listed as a collateral asset on Moonwell, I would encourage you to provide the information requested in the Moonwell Asset Listing Framework v2 as a starting point, so that the Moonwell DAO and Moonwell contributors such as Gauntlet can properly evaluate.
Also, please note that there isn’t a Chainlink price feed deployed for WELL at this moment in time.
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yeah, we would need an API3 oracle, or some similar “top tier but not chainlink” oracle.
As for the asset listing framework, I don’t feel I’m well positioned to answer some of the questions.
- emissions schedule (the MW team would know this better than me)
- Gini coefficient, herfindahl index. This seems like an odd thing to provide. Presumably Gauntlet is calculating these themselves and not just taking my word for it right?
- Social growth metrics. I can look at current numbers of discord users/twitter followers but I wouldn’t be able to know something like growth rate
- The section under decentralization, again the MW team would be better able to answer those than me
Basically chunks of it feel odd to fill out for the WELL token itself, as you guys know these answers.
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Would love to get a response to this from the core contributors.
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No news on this discussion for a few months now.
I would be very interested to hear an update on where WELL currently stands in regards to being eligible for use as collateral 
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Hey @kimchiblock and @Tryvis! I have recently learned that a Chainlink WELL-USD price feed (Base and Optimism) has been submitted for review. I don’t have an ETA for you as far as approval/deployment is concerned, but will keep the community updated as I learn more.
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