Warden Finance - Base Liquidity Incentives

[WardenFinance]

We will be adjusting staking module reward emissions to match the increase in TVL for Moonwell Base deployment in the upcoming incentives update, which will likely close the insurance fund size gap between Base and Moonbeam deployments.

[WardenFinance]

Rebalancing of Base Liquidity Incentives (2024-06-14)

Updates

• USDC rewards are not renewed for this epoch.

Key observations

Lending markets

• All markets are at healthy utilization level (below kink).
• DAI and rETH circulating supply still low.

Source: Warden Finance

Safety Module

• Total deposits: 280M WELL ($9.8M)
• Current yield: 10.1% APY

Safety module currently provides an insurance fund of $2.93M against bad debt for a total exposure of $92.27m TVL (3.1% coverage)

Applied changes

• WELL supply-side rewards for USDC lending market have been significantly increased to compensate for deprecation of USDC rewards.

Specifications

Epoch #	Total per epoch	Start timestamp	Start date
12	21,610,576.92 WELL 0 USDC	1718402400	Fri, 14 Jun 2024 22:00:00 GMT

Liquidity incentives

72% of WELL rewards (15,621,035.96) allocated towards liquidity incentives.

Reward distribution (% of allocation)	cbETH	DAI	USDbC	USDC	ETH	wstETH	rETH	AERO
WELL supply	10%→5%	1%→0.5%	0%	16%→27%	60%→57%	6%→4%	2%→1.5%	5%
WELL borrow	0%	0%	0%	0%	0%	0%	0%	0%

Safety module incentives

28% of WELL rewards (5,989,540.972) allocated towards safety module.

We have increased the staking module rewards allocation for the next two epoch in proportion to the recent protocol TVL growth on Base. Goal of this change is to provide a bad debt insurance fund that stays in line with the protocol’s total exposure.

Epoch #	Emissions per second	Emissions per epoch (28 days)
10	0.89627551165 WELL/s	2,168,269.72 WELL
11	0.89627551165 WELL/s	2,168,269.72 WELL
12 (present)	2.47583538590 WELL/s	5,989,540.97 WELL (176% increase)
13	2.47583538590 WELL/s	5,989,540.97 WELL