Weekly Governance Recaps

Announcements & Updates Updates
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Boardroom is providing weekly recaps on Moonwell’s governance activity. This thread is meant to be a one-stop shop for users who would like to obtain a 360-degree view of the forums in a single location.

On each Monday, beginning February 12th, 2024, you can come to this thread to recap the previous week’s activity. Within our weekly recap, we’ll provide a look back at the following items for the past week:

  • Proposals
  • Critical Discussions
  • Governance Changes
  • Contributor Activity

We’d love to hear your feedback and any suggestions you might have to improve the content. If you have comments, suggestions, or other feedback, please leave your input in this form.

To provide the best reading experience, please limit your comments on this thread.

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Weekly Governance Update: Week of February 5, 2024

The first week of February included a mix of controversial forum activity and proactive initiatives from contributors. Here, we highlight them in brief:

Contributor Updates

Proposal: Gauntlet Guardian - wstETH cap recommendations

Author: Gauntlet

Forum Link: Gauntlet Guardian - wstETH cap recommendations

Summary: This forum post on February 5, 2024 suggested that Gauntlet use Cap Guardian to increase borrowing caps and supply caps for wstETH from 1000 to 1300, and 350 to 500, respectively. The use of the Cap Guardians on Base was voted in by the community here in early August, 2023. In that process, Gauntlet assumed a role which allows the team to promptly modify borrow and supply caps in response to market risk events, onchain DEX liquidity fluctuations, and changes in liquidity pool usage. As such, there was no proposal to pass.

Outcome: The transactions were executed on Base and can be reviewed here and here.

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Proposal: Gauntlet’s BASE/Moonbeam/Moonriver Recommendations (2024-01-30)

Author: Gauntlet

Forum Link: Gauntlet’s BASE/Moonbeam/Moonriver Recommendations (2024-01-30)

Summary: This proposal, originally introduced at the end of January, recommended adjustments to five risk parameters and two IR curves on Base. These included the wstETH, rETH, and cbETH collateral factors and the wstETH supply and borrow caps. The IR curve adjustments included cbETH and USDC. Moonbeam recommendations included adjustments to two risk parameters (xcDOT and WGLMR collateral factors) and three IR curves (xcUSDT, xcUSDT, and USDC.wh). There were no risk parameter nor IR curve recommendations for Moonriver. As a part of these recommendations, Gauntlet also proposed to become Cap Guardian on Moonriver and Moonbeam, just as they had done for Base. Transactions were then executed to increase wstETH borrow and supply caps on Base. On February 5, Warden Finance reviewed the Gauntlet recommendations and were in favor of the changes. They further recommended decreasing DAI supply and borrow caps to 4m and 3.5m, respectively. On February 6, Gauntlet replied, suggesting a staggered, risk-off approach for DAI following changes in DAI supply on BASE.

Outcome: The Base component of the proposal (MIP-B13) was put up for vote on Snapshot vote where it passed with 100% consensus before going on to an onchain vote. The cross-chain proposal was executed on February 10, 2024. The Moonriver component (MIP-R12) passed a Snapshot vote with 100% consensus and the onchain vote passed with 99.9% consensus. The timelock was executed on February 9, 2024. The final Moonbeam component (MIP-M17) passed a Snapshot vote with 99% consensus before passing an onchain vote with 99.7% consensus. The timelock was executed on February 9, 2024.

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Proposal: Weekly Update from Gauntlet

Author: Gauntlet

Forum Link: Gauntlet’s Weekly Market Update (2024-02-02)

Summary: In the most recent market update from Gauntlet, no parameter changes were recommended. DAI was the only asset found to have an average supply cap usage of over 75%, landing at 79.8% in the past week. mWETH and mUSDC had $676.56 and $213.74 in liquidations, respectively.

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Delegate Activity

Proposal: MFAM Token Reallocation for Liquidity Incentives

Author: coolhorsegirl

Forum Link: MFAM Token Reallocation for Liquidity Incentives

Summary: A proposal from January 29 continued to see engagement until February 9. This largely came from a point of contention between two delegates. Coolhorsegirl brought up the exhaustion of 50% of MFAM incentives; the delegate proposed reallocating 20% of the MFAM token supply from Developer Grants and Incentives to be used as liquidity incentives for the MFAM markets. Another delegate, Curly, stepped in to offer two main notes: the discussion should have been had on the forums before going to Snapshot for a vote, and there may be better options for how to reallocate the funds (e.g. 3 different “yes” vote options with different timelines). The Snapshot was taken down and re-submitted. The whole process highlighted general voting processes in Moonwell governance, including having more forum discourse on proposals before elevating them to Snapshot votes and directing Telegram discussions on proposals to the forum post.

Outcome: The Snapshot vote was re-submitted on February 5, 2024. The community voted on “Reallocate + 2 year emissions” with 68.55% consensus.

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Upcoming Events in Governance

Monthly Governance Call

Feb 15th at 5 PM UTC

Make sure you attend the newly created Monthly Governance Call hosted in Discord.

Sign up here: Discord

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Weekly Governance Update: Week of February 12, 2024

The second week of February included continued risk parameter changes from contributors, new integrations, and the rebalancing of token liquidity incentives. Here are the highlights:

Contributor Updates

Risk Service Update: Gauntlet Guardian - Increase wstETH caps on Base

Author: Gauntlet

Summary: This post notified the community that Gauntlet would be utilizing their role as a Cap Guardian for Base to increase the borrow and supply caps for wstETH from 1300 to 1600 and 500 to 700, respectively. With Gauntlet’s role as a Cap Guardian, the risk service provider can make necessary alterations to supply and borrow caps quickly and efficiently. Accordingly, there were no active proposals that went live to enact these changes.

Outcome: Guardian transactions were executed on-chain here and here on February 14, 2024.

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Borrow Cap Updates: Gauntlet Guardian - cbETH Borrow Cap Recommendations on BASE

Author: Gauntlet

Summary: Gauntlet notified the community that it would use Cap Guardian for Base to increase the borrow cap for cbETH from 1000 to 1800. There were no active proposals that went live to enact these changes.

Outcome: The Guardian transaction was executed on-chain here on February 17, 2024.

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Recommendations: Gauntlet’s Weekly Market Update (2024-02-02)

Author: Gauntlet

Summary: In the most recent market update from Gauntlet, no parameter changes were recommended for Base. DAI was the only asset found to have an average supply cap usage of over 75%, landing at 79.8% in the past week. mWETH and mUSDC had $676.56 and $213.74 in liquidations, respectively.

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Forum Posts: Who is Boardroom and Why Are We Here?; Monthly Governance Reports; Weekly Governance Recaps; Monthly Governance Calls

Author: Boardroom

Forum Links:

Summary: To kick off Boardroom’s partnership with Moonwell, the governance facilitator established three ongoing forum threads and an introduction post. On Monday, the first Weekly Governance Update went live, recapping the week of February 5. On Thursday, Boardroom hosted the first Monthly Governance Community Call, with contributions from Warden Finance, Solidity Labs, Gauntlet, and two delegates (@curly and @coolhorsegirl). You can find a recap and recording of the call in the monthly governance call thread.

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Forum Post: Base, Moonbeam, and Moonriver Weekly Market Update - (2024-02-09 through 2024-02-15)

Author: Gauntlet

Summary: Gauntlet provided risk parameter information for the three network deployments. For Base, DAI and rETH were the only assets with over 75% average supply cap usage, at 79.4% and 86.25%, respectively. There were no liquidations on Base. On Moonbeam, three assets had an average utilization of greater than 75%: FRAX (106.35%), USDC.wh (80.82%), and xcUSDT (81.09%). The network did have a few liquidations: $4.11k mFRAX, $262.41 mGLMR, and $42.18 mDOT. On Moonriver, no assets had an average utilization of greater than 75%. There was $1.68k of mMOVR liquidated.

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Delegate Activity

Proposal: MIP-R13 Rebalancing of Moonriver Token Liquidity Incentives

Author: Curly

Forum Link: MIP-R13 Rebalancing of Moonriver Token Liquidity Incentives

Summary: In the first of two proposals by Curly on February 13, MIP-R13 was automated and generated by the Moonwell Market Reward Adjustment Tool. If passed, this proposal would adjust the rewards on the Safety Module to decrease emissions by -52.70% and emit 2,431,211 MFAM over the next 28 days. Similarly, the rewards on the Dex Rewarder would decrease emissions by -52.70% and emit 2,725,903 MFAM over the next 28 days. It also included adjustments to the supply-side incentives of MFAM/MOVR and xcKSM/FRAX. After the MFAM liquidity incentives Snapshot passed last week, the community began using MFAM originally set aside for grants to provide supply liquidity. This proposal reflects the need to make adjustments to the amount of MFAM released per cycle and to decrease the average reward per pool to extend the runway. Preference was given to MOVR and KSM, lowering the rewards for FRAX.

Outcome: On-chain voting ended on February 16. Although the vote was split, the quorum was met and the proposal passed with 57.7% “For.”

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Proposal: MIP-M18 Rebalancing of Moonbeam Liquidity Incentives

Author: Curly

Summary: Curly’s second discussion was also an automated proposal generated by the Moonwell Market Reward Adjustment Tool. If passed, this proposal would keep the rewards on the Safety Module the same and emit 6,778,846 WELL over the next 28 days. Similarly, the rewards on the Dex Rewarder would keep rewards the same and emit 721,154 WELL over the next 28 days. No changes were proposed to the supply side/borrow side of GLMR, xcDOT, xcUSDT, FRAX, ETH.wh, nor BTC.wh APRs. There were changes for the following markets: USDC.wh had a supply side APR adjustment of 15.1% to 12.37%; xcUSDC had a supply side APR adjustment of 7.75% to 280.76%. Curly noted that the large change to USDC APRs is due to increasing the liquidity on Moonbeam, and that preference should be incentivized away from the Wormhole bridged USDC pool to the xcUSDC pool.

Outcome: On-chain voting ended on February 16, with a 100% consensus “For” vote.

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Integration Updates

Forum Post: Migrating the Apollo Vault to Aera V2

Author: Aera

Summary: This proposal is from Aera Finance, a non-custodial, autonomous, rebalancing treasury management protocol. It seeks to migrate the existing Apollo Aera vault from Aera V1 to Aera V2, maintaining a 15% volatility target strategy. Aera V2 is live in production and comes with new features, including the ability to generate yield on stablecoins, support for a broader range of assets and strategies, an enhanced security framework, and the elimination of Impermanent Loss. The Aera team is proposing that the community migrate the existing V1 vault with $290k to V2. The team then discussed implementation details for Moonwell Apollo and the proposed benefits of migration. The proposal includes the option to leverage Aave for generating a yield on the USDC holdings in the vault; there will be three options for voting: Yae with Aave USDC, Yae w/o Aave USDC, and Nae don’t upgrade to Aera V2.

Outcome: TBD

Upcoming Events in Governance

Monthly Governance Call

First week of March

Make sure to look out for the next Monthly Governance Call on Thursday, March 7th, 2024 hosted in Discord.

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Weekly Governance Update: Week of February 19, 2024

The third week of February included regular contributor posts, updates on the Nomad recovery efforts, and the passing of a proposal related to a third-party DeFi protocol. Here are the highlights:

Contributor Updates

Forum post: [Gauntlet] Base, Moonbeam, and Moonriver Weekly Market Update

Author: Gauntlet

Summary: Beginning with Base, Gauntlet highlights the assets with an average supply/borrow cap usage over 75%. This week, DAI had an average borrow cap usage of 75.69% and an average supply cap usage of 81.83%. rETH had an average supply cap usage of 88.30%. Liquidated assets included mcbETH and mWETH, at $5.36K and $1.16K, respectively. Next, on Moonbeam, three assets had an average utilization above 75%: FRAX, USDC.wh, and xcUSDT (106.37%, 80.60%, and 80.58%, respectively). Liquidations included $10.28K of mGLMR, $3.88K of mDOT, and $143.24 of mFRAX. Last, Moonbeam had no assets with an average utilization of over 75% and had no liquidations.

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Forum post: Rebalancing of Base Liquidity Incentives

Author: Warden Finance

Summary: To help avoid bad debt resulting from critically low DAI circulating supply, Warden Finance recommended the lending market supply to be capped at 50% of the on-chain circulating supply. Other topics discussed included the total supply for the rETH lending market standing at 55% of the circulating supply and rETH and cbETH being underutilized. Changes applied to mitigate these issues included a substantial decrease in DAI rewards to help reduce supply and borrow activity and the shifting of cbETH rewards towards WETH and USDC.

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Forum Post: Moonwell Proxy Report - Feb 2024

Author: Boardroom

Summary: As a part of Boardroom’s support for Moonwell, the governance data service provider published a bi-annual “Proxy Report.” The document is intended to capture a 360-degree view of Moonwell DAO Governance. The report covers insights into historical voting patterns, community & delegate survey results, and short- and long-term initiatives to create change for the DAO.

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Forum Post: Redemption and Reallocation of Nomad Collateral and Protocol Reserves for FRAX Market Enhancement

Author: Elliot

Summary: Originally posted on January 3, 2024, this forum post contains an important update for the Moonwell protocol. Elliot, a contributor to Moonwell through Solidity Labs, gave the community an update on the progress of the Nomad Recovery. He highlighted the time delay due to the Nomad KYC process and mentioned that the integration has been tested to ensure that the protocol continues functioning as intended post-upgrade. Essentially, the technical details surrounding the Nomad Recovery are still in progress and the community will stay updated throughout the process. On Wednesday, Elliot raised potential mitigation to the issue of bridging Nomad assets from Moonbeam back to Ethereum mainnet: a trusted community member could un-bridge assets using an EOA, redeem the Nomad assets on mainnet for their corresponding underlying tokens, and then send the underlying to the multisig. The multisig on mainnet would then swap all assets into FRAX, and then use Frax Ferry to move assets from Ethereum mainnet back to Moonbeam. Once the assets are back on Moonbeam, they will repay the FRAX bad debt.

He recommended that the community vote on who this community member should be, and he nominated himself for this role. Others who meet certain security criteria were encouraged to nominate themselves as well.

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Integration Updates

Forum Post: Migrating the Apollo Vault to Aera V2

Author: Aera

Summary: This discussion went live on February 14 and was included in our last weekly update. Aera Finance sought to migrate the existing Apollo Aera vault from Aera V1 to Aera V2. V2 is live in production and comes with new features, including the ability to generate yield on stablecoins, support for a broader range of assets and strategies, an enhanced security framework, and the elimination of Impermanent Loss. The proposal included the option to leverage Aave for generating a yield on the USDC holdings in the vault; the three options for voting included: “Yae with Aave USDC,” “Yae w/o Aave USDC,” and “Nae don’t upgrade to Aera V2.”

This week, on February 21, the proposal went up for a Snapshot vote.

Outcome: The Snapshot ended on February 24. A quorum was met, with a 100% consensus “Yae, upgrade with Aave USDC” vote.

Upcoming Events in Governance

EthDenver

EthDenver is this week! If you’re showing up at EthDenver, tag @moonwellgov on Twitter/X. Saw a great talk or went to an inspiring meetup? Post a recap and if it’s educational for the Moonwell community, we’ll repost it!

Monthly Governance Call

First week of March

Make sure to look out for the next Monthly Governance Call on Thursday, March 7th, 2024 hosted in Discord.

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Weekly Governance Update: Week of February 26, 2024

The fourth week of February included regular cap recommendations, updates to the Nomad Recovery efforts thread, and a third-party integration update. Here are the highlights:

Contributor Updates

Forum post: Gauntlet Guardian Borrow Cap Recommendations for xcUSDC

Author: Gauntlet

Summary: With Gauntlet’s ability to make cap adjustments quickly through Cap Guardian, avoiding the need for governance proposals, the risk service provider announced in the forum post above that the borrow cap for xcUSDC would be set at 400,000. The borrow cap is meant to accommodate future growth for the asset on Moonwell, as the circulating supply has increased to ~$182K xcUSDC. You can review the transaction on Moonscan here.

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Forum Post: Redemption and Reallocation of Nomad Collateral and Protocol Reserves for FRAX Market Enhancement

Author: Elliot

Summary: As an update to the progress made on the Nomad Recovery since the last weekly update, Elliot informed the community that a few additional tests were added to the pull requests on GitHub. Two reviews of the code were conducted; no issues were found. Lunar Labs then began awaiting quotes from auditing firms for a contest that will be kicked off in the first week of March. On Thursday, Elliot announced that Codehawks was selected to be the audit competition platform. The competition will last 7 days after beginning on March 4th.

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Forum post: Gauntlet BASE/Moonbeam/Moonriver Recommendations

Author: Gauntlet

Summary: Gauntlet conducted their regular updates to the three Moonwell deployment networks.

  • Base: Gauntlet recommended 12 risk parameter changes, including increasing reserve factors for wstETH, rETH, cbETH, and DAI and decreasing the DAI supply and borrow cap. The deployment was also recommended to change wETH’s and DAI’s IR curve. The combination of these actions is meant to manage concentration risk for DAI, improve overall capital efficiency for the protocol, and increase protocol reserves by raising the reserve factors for the Ethereum-based LSTs.

  • Moonbeam: 6 risk parameters (reserve factors for USDC.wh and WGLMR plus collateral factors for xcUSDC, USDC.wh, xcDOT, and WGLMR) were recommended for adjustments. The IR curve for USDc.wh was also proposed to be updated.

  • Moonriver: One risk parameter was mentioned for adjustment: Frax borrow cap. Gauntlet advised against making adjustments to any IR curves for this week.

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Forum post: Gauntlet Base, Moonbeam, Moonriver Weekly Market Update 2024-02-23 through 2024-02-29

Author: Gauntlet

Summary: In addition to the weekly recommendations, on Saturday, Gauntlet posted a weekly update for the Moonwell markets covering the previous week.

  • Base: One asset had an average supply cap usage of over 75%: rETH (90.30%). The deployment had no liquidations.

  • Moonbeam: Four assets had an average utilization of more than 75%: FRAX (106.37%), USDC.wh (80.56%), xcUSDT (80.92%), and xcUSDC (80.30%). There was $3.04K of mUSDC.wh and $132.21 of mGLMR liquidated.

  • Moonriver: One asset experienced an average utilization of 76.42% - FRAX. $1.23K of mMOVR was liquidated.

Integration Updates

Forum Post: Migrating the Apollo Vault to Aera V2

Author: Aera

Summary: In the last weekly update, it was highlighted that Aera’s snapshot to migrate the existing Apollo vault from Aera V1 to V2 had passed with a “Yae, upgrade with Aave USDC” outcome. On March 1, Aera updated the community that the vault was live. As data begins to populate for the new vault, the Moonwell community can track its progress here.

Upcoming Events in Governance

Monthly Governance Call

Make sure to look out for the next Monthly Governance Call this week on Thursday, March 7th, 2024 hosted in Discord.

Add it to your calendar and save the event in Discord.

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Weekly Governance Update: Week of March 4, 2024

The first week of March included regular risk analysis from @WardenFinance and @Gauntlet, an initiative to add support for a new lending market, and a proposed third-party partnership.

Here are the highlights:

Contributor Updates

Forum post: Review of Gauntlet’s BASE Recommendations 2024-02-28

Author: Warden Finance

Summary: On Monday, Warden Finance offered insights on Gauntlet’s BASE/Moonbeam/Moonriver Recommendations covered in the last weekly update. The risk analysis service provider agreed with Gauntlet’s proposed changes. However, the team further recommended reducing the supply-side rewards for DAI to help offset low onchain liquidity. They advocated capping the lending market supply at 50% of the onchain circulating supply; DAI’s current supply on Moonwell stands at 110%. rETH also had a low circulating supply, limiting the growth of that market. Lastly, the lending pools for the liquid staking tokens (LSTs) rETH and cbETH were reported to be underutilized in the previous months.

Outcome: Gauntlet executed nine onchain transactions using Cap Guardian to enact the changes laid out in the original recommendations post. On March 4, Gauntlet created two onchain proposals for Base and Moonbeam to implement the rest of the recommended changes that weren’t enacted through Cap Guardian. Voting closed on March 7. Both proposals passed with a “For” vote.

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Forum post: Gauntlet Base, Moonbeam, Moonriver Weekly Market Update

Author: Gauntlet

Summary: Gauntlet posted a weekly update on Saturday for the Moonwell markets covering the previous week.

  • Base: Two assets had an average supply cap usage of over 75%: rETH (78.71%, down from 90.30% last week) and DAI (87.53%). The deployment had $49.44K and $9.75K in liquidations for mswtETH and mWETH, respectively.
  • Moonbeam: The same four assets as last week had an average utilization of more than 75%: FRAX (106.38%), USDC.wh (81.86%), xcUSDT (81.51%), and xcUSDC (79.81%). Five assets experience liquidations: wBTC.wh ($9.89K), mDOT ($1.78K), mGLMR ($881.61), mFRAX ($136.74), and mUSDC.wh ($1.30).
  • Moonriver: FRAX was the only asset that experienced an average utilization of >75%, coming in at 80.25%. $8.32K of mMOVR and $539.53 of mUSDC were liquidated.

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Delegate Updates

Forum Post: Add WBTC Market to Moonwell on Base

Author: coolhorsegirl

Summary: On Tuesday, delegate @coolhorsegirl proposed activating a WBTC (Wrapped Bitcoin) market on Moonwell. If approved, Moonwell would be the first lending market on Base to support the asset. The proposal first went up for a Snapshot vote, and it passed with 99.22% consensus. From here, the proposal will progress to an onchain MIP.

Outcome: An onchain proposal will be created but has yet to go live.

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Integration & Partnership Updates

Forum Post: Quantix Capital x Moonwell

Author: marcotd

Summary: New to Moonwell, @marcotd, an investments analyst at Quanitx Capital, proposed a relationship between Moonwell and the investment fund/asset management firm on Saturday. The firm provides comprehensive support for projects, including services such as marketing, market making, exchange listings, tokenomics, capital raising, and treasury management.

Read more about Quantix Capital’s token advisory here.

Outcome: TBD, community input is needed! Please see the forum post and add your comments and questions!

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Upcoming Events in Governance

Monthly Governance Call

First Thursday of April

Look for the next Monthly Governance Call in Discord on the first Thursday, April 4th.

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Weekly Governance Update: Week of March 11, 2024

The second week of March included regular risk analysis from Moonwell contributors, an initiative to begin the technical changes needed to support the xERC20 token standard and monthly “Reward Speed” proposals for Moonbeam and Moonriver.

Here are the highlights:

Contributor Updates

Forum post: MIP-M21: Upgrade Wormhole Bridge Adapter on Moonbeam

Author: elliot

Summary: WELL is in the process of upgrading to the xERC20 standard, enabling the token to be used on Base for voting and staking. In preparation for this, contributor Elliot from Solidity Labs proposed MIP-M21 on Friday to upgrade the Wormhole Bridge Adapter on Moonbeam. The proposed upgrade would improve the user experience of bridging, automatically unwrapping the WELL (xERC20) back to the original Moonbeam WELL token on transfer. This proposal, if passed, will lead to the creation of two new governance proposals. See the forum post above for more detailed security considerations and codebase changes.

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Forum post: Gauntlet Base, Moonbeam, Moonriver Weekly Market Update

Author: Gauntlet

Summary: Gauntlet posted a weekly update on Saturday for the Moonwell markets covering the previous week.

  • Base: One asset had an average supply cap usage of over 75%: DAI (77.52%, down from 87.53% last week). The deployment had no liquidations in the past week.
  • Moonbeam: Four assets had an average utilization of more than 75%: FRAX (106.38%), USDC (81.40%), xcUSDT (83.39%), and xcUSDC (77.75%). Four assets experienced liquidations: mDOT ($4.91K), mGLMR ($1.45), mFRAX ($873.38), and mUSDC.wh ($16.21).
  • Moonriver: FRAX was the only asset that experienced an average utilization of >75%, coming in at 88.46%. $20.43K of mFRAX, $1.10K of mMOVR, and $10.69 of mUSDC were liquidated.

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Forum post: Guantlet Guardian - USDC and DAI Cap recommendations on Base

Author: Gauntlet

Summary: Gauntlet announced their use of Cap Guardian to alter the borrow caps and supply caps for USDC and DAI on the Base network. USDC supply cap was changed from 15M to 20M, and the borrow cap was changed from 12M to 18.2M; DAI supply cap was changed from 2.5M to 2M, and the borrow cap was changed from 2M to 1.5M. The decrease in DAI caps was put in place to prevent concentration risk due to declining circulating supply. The two transactions (1 and 2) for USDC and two transactions (3 and 4) for DAI were executed on March 14.

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Forum post: Add WBTC Market to Moonwell on Base

Author: Gauntlet

Summary: In the last weekly update, @coolhorsegirl proposed activating a WBTC (Wrapped Bitcoin) market on Moonwell. The proposal first went up for a Snapshot vote, and it passed with 99.22% consensus. On Monday, Gauntlet stepped in to offer their initial parameter recommendations for the asset, conditional on WBTC having significant DEX liquidity and availability on Base. For risk parameters, they recommended a 0 CF, a supply cap of 0.00010001, a borrow cap of 0.00001, and a protocol seize share of 3%. For IR curves, they recommended a 0 base, 0.45 kink, a 0.04 multiplier, a 3.00 jump multiplier, and a 0.25 reserve factor.

Delegate Coolhorsegirl gave a small update on Friday that, following Gauntlet’s analysis, the onchain proposal to add a WBTC market to Moonwell on Base was near.

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Forum post: xcUSDT Liquidity Analysis and Recommendations

Author: Gauntlet

Summary: Gauntlet provided an update on a potential exploit on Parallel Finance on Friday. At the time, there appeared to be an exploit involving a DOT price mismatch in their lending market. At the time of posting, there were no signs of malicious use of USDT liquidity pools. The risk analysis firm mentioned that they will continue to monitor this situation and will recommend lowering the borrow cap for USDT to 800k

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Delegate Updates

Proposals: MIP-M20 (WELL) and MIP-R14 (MFAM)

Author: curly

Summary: On Monday, delegate @curly submitted his monthly “Reward Speed” proposals for Moonbeam and Moonriver. These proposals rebalance liquidity incentives in an effort to maintain healthy levels of rewards on the networks. The Moonriver proposal seeks to adjust the rewards on the Safety Module to emit 2,431,211 MFAM over the next 28 days. The DEX Rewarder would emit 2,725,903 MFAM over the next 28 days.

The Moonbeam proposal seeks to adjust the rewards on the Safety Module to emit 6,778,846 WELL over the next 28 days. The DEX Rewarder would emit 721,154 WELL over the next 28 days. Various asset markets had supply-side rewards adjustments:

  • The GLMR market supply side reward would increase from 6.53% to 7.25% and the rate of WELL incentives (supply side) would increase from 1,938461.41 WELL / cycle to 2,215,384.47 WELL / cycle. The GLMR market incentives (supply side) would increase from 29,434.65 GLMR / cycle to 33,639.60 GLMR / cycle.
  • The xcDOT market proposed supply side APRs would increase from 18.52% to 19.89%; both WELL and GLMR supply side incentives would increase from 1,730,769.12 WELL / cycle to 2,076,922.94 WELL / cycle and 26,280.94 GLMR / cycle to 31,537.13 GLMR / cycle, respectively.
  • The xcUSDT market proposed supply side APRs would decrease from 24.65% to 22.04%; both WELL and GLMR supply side incentives would decrease from 415,384.59 WELL / cycle to 346,153.824 WELL / cycle and 6,307.43 GLMR / cycle to 5,256.19 GLMR / cycle, respectively.
  • The FRAX market proposed supply side APRs would decrease from 13.83% to 10.61%; both WELL and GLMR supply side incentives would decrease from 1,107,692.24 WELL / cycle to 830,769.18 WELL / cycle and 16,819.80 GLMR / cycle to 12,614.85 GLMR / cycle, respectively.
  • The BTC.wh market proposed supply side APRs would decrease from 2.57% to 2.05%; both WELL and GLMR supply side incentives would decrease from 692,307.65 WELL / cycle to 553,846.12 WELL / cycle and 10,512.38 GLMR / cycle to 8,409.90 GLMR / cycle, respectively.
  • The USDC.wh market proposed supply side APRs would decrease from 14.11% to 10.28%; both WELL and GLMR supply side incentives would decrease from 415,384.59 WELL / cycle to 207,692.29 WELL / cycle and 6,307.43 GLMR / cycle to 3,153.71 GLMR / cycle, respectively.
  • The xcUSDC market proposed supply side APRs would increase from 30.17% to 35.36%; both WELL and GLMR supply side incentives would increase from 346,153.82 WELL / cycle to 415,384.59 WELL / cycle and 5,256.19 GLMR / cycle to 6,307.43 GLMR / cycle, respectively.

Outcome: MIP-M20 and MIP-R14 passed their onchain voting period and entered a 24-hour timelock.

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Upcoming Events in Governance

Monthly Governance Call

First Thursday of April

Look for the next Monthly Governance Call in Discord on the first Thursday, April 4th.

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Weekly Governance Update: Week of March 18, 2024

The third week of March included regular risk analysis from Moonwell contributors, a follow-up proposal to the Nomad Recovery, and a major milestone for cross-chain governance.

Here are the highlights:

Contributor Updates

Forum post: MIP-M21: Upgrade Wormhole Bridge Adapter on Moonbeam

Author: elliot

Summary: In the last weekly update, Elliot from Solidity Labs proposed MIP-M21 to upgrade the Wormhole Bridge Adapter on Moonbeam, an important step towards enabling voting and staking from Base. On Monday, the on-chain proposal went live.

Outcome: MIP-M21 passed its on-chain vote with 97.7% consensus.

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Forum post: Gauntlet Base, Moonbeam, Moonriver Weekly Market Update

Author: Gauntlet

Summary: Gauntlet posted a weekly update on Saturday for the Moonwell markets covering the previous week.

  • Base: Three assets had an average supply cap usage of over 75%: DAI (75.10%, down from 77.52% last week), WETH (76.67%), and rETH (78.55%). The deployment had two asset liquidations in the past week: $1.23K mwstETH and $1.01K mWETH.
  • Moonbeam: Three assets had an average utilization of more than 75%: FRAX (106.39%), USDC.wh (82.30%), and xcUSDT (79.44%). Four assets experienced liquidations: mDOT ($4.09K), mGLMR ($16.34K), mFRAX ($55.65), and mxcUSDT($126.89).
  • Moonriver: FRAX was, again, the only asset that experienced an average utilization of >75%, coming in at 87.22%. $6.02K of mMOVR and $53.38 of mxcKSM were liquidated.

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Forum post: Guantlet FRAX Borrow Cap Guardian - Moonriver

Author: Gauntlet

Summary: Gauntlet announced their use of Cap Guardian to reduce borrow caps for FRAX on the Moonriver network. The previous borrow cap was 500,000; the new recommended cap is 270,000 due to high utilization (61%) in the FRAX pool. The lowering of the cap is meant to prevent further borrowing. The Moonscan transaction for this change can be found here.

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Forum post: MIP-M23 and MIP-M24: Multichain Governor and WELL Migration

Author: elliot

Summary: It was previously reported in the last weekly update that if MIP-M21 (the first proposal enabling multichain governance) passed, two new proposals would be created. MIP-M23 would transfer power to the new governor. From a high level, the proposal seeks to move from Compound’s Governor Alpha smart contract to one that enables a seamless, cross-chain user experience. If passed, it would enable WELL token-holders on Base to participate in governance. The new multichain governor was developed by Moonwell contributor Solidity Labs. Going one step beyond the transfer of power from one governor to the other, MIP-M24 would accept ownership of the contracts and finalize the new governor’s abilities. For more information on implementation parameters, security, and xWELL details, check out the forum post above.

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Delegate Updates

Proposal: MIP-M22 - Strategic Reallocation of Collateral for FRAX Market Stability

Author: Curly

Summary: In Boardroom’s update from the last week of February, Elliot from Solidity Labs gave an update on the progress of the Nomad Recovery. On Wednesday, delegate @Curly submitted an on-chain proposal that aims to enhance FRAX liquidity on Moonbeam. It’s important to note that MIP-M22 won’t be the end of the Nomad recovery. Upcoming tasks include Solidity Labs going through “a KYC/Redemption process, swapping redeemed assets for FRAX, bridging the assets back to Moonbeam via FRAX Ferry, and finally adding the funds to the protocol reserves.”

Outcome: MIP-M22 passed its on-chain vote with 100% consensus.

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Upcoming Events in Governance

Monthly Governance Call

First Thursday of April

Look for the next Monthly Governance Call in Discord on the first Thursday, April 4th.

9

Weekly Governance Update: Week of March 25, 2024

The final week of March included ideas for new ecosystem integrations, a pair of MIPs related to multichain governance, and recommendations from @Gauntlet & @WardenFinance.

Here are the highlights:

Integration Updates

Forum post: Activate Moonwell Apollo on Polygon POS

Author: Chiefpreneur

Summary: New poster @Chiefpreneur made a forum discussion on Monday seeking authorization for deploying Moonwell Apollo on Polygon POS mainnet. The noted reasons for this effort include increasing the reach of Moonwell’s lending services to new users, the scalability and low transaction costs of Polygon, and interoperability with other Polygon DeFi protocols.

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Forum post: Growth Proposal for Moonwell

Author: XposureToday

Summary: On Wednesday, first-time poster @XposureToday proposed a partnership between Moonwell and a marketing firm, Xposure Today. Components of the proposed 5-week program included an educational onboarding program, a PR article, co-marketing activities, and content creation/distribution. The estimated cost would be $5,000-$12,000.

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Contributor Updates

Forum post: Rebalancing of Base Liquidity Incentives

Author: WardenFinance

Summary: The primary reasons for this update were to inform the community that a new rewards pool of 50,000 USDC will be allocated towards the native USDC market rewards over epoch #9 and that a Safety Module for Base will soon be introduced. Warden allocated 17% of epoch #9 WELL rewards to future safety module incentives. WELL rewards were accordingly rebalanced to take into account the new USDC rewards pool.

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Forum post: Gauntlet’s Base/Moonbeam/Moonriver Recommendations

Author: Gauntlet

Summary: Gauntlet posted their recommendations for the three Moonwell deployments on Tuesday.

  • Base: Five risk parameters were recommended to be changed: WETH supply and borrow cap (12,500 to 18,000 and 10,500 to 14,000, respectively), wstETH supply and borrow cap (1,800 to 2,100 and 800 to 900, respectively), and USDbC RF (15% to 20%). For IR parameters, only USDC had any recommendations: kink (0.8 to 0.9), multiplier (0.032 to 0.067), and jump multiplier (4.2 to 9.0).
  • Moonbeam: Seven risk parameters were recommended to be changed: xcUSDC and WGLMR collateral factors (10% to 15% and 58% to 57%, respectively), WGLMR borrow cap (22,500,00 to 10,000,000), WBTC.wh borrow cap (50 to 5), WETH.wh borrow cap (500 to 100), and the reserve factors for xcUSDT and xcUSDC (20% to 25%, each). For IR parameters, four assets were recommended changes: USDC.wh (an increase in multiplier from 0.0845 to 0.0875 and an increase in jump multiplier from 7.2 to 7.4), xcUSDC (an increase in multiplier from 0.0814 to 0.0875 and an increase in jump multiplier from 7.0 to 7.4), xcUSDT (an increase in multiplier from 0.0814 to 0.0875 and an increase in jump multiplier from 7.0 to 7.4), and FRAX (an increase in multiplier from 0.01 to 0.0563 and an increase in jump multiplier from 0.01 to 4.0).
  • Moonriver: Three risk parameters were recommended to be changed: FRAX reserve factor and collateral factor (15% to 25% and 57% to 53%, respectively) and WMOVR borrow cap (40,000 to 20,000). Only one IR parameter change was recommended for FRAX (increasing the multiplier from 0.0814 to 0.0875 and the jump multiplier from 7.0 to 7.4).

For more information on Gauntlet’s rationale and the supporting data for these changes, read the linked forum post above.

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Forum post: Gauntlet Base, Moonbeam, Moonriver Weekly Market Update

Author: Gauntlet

Summary: Gauntlet posted a weekly update on Saturday for the Moonwell markets covering the previous week.

  • Base: Three assets had an average borrow/supply cap usage of over 75%: DAI (77.79% borrow cap and 78.32% supply cap), wstETH (76.45% borrow cap), and rETH (86.28% supply cap). The deployment had two asset liquidations in the past week: $1.34K mUSDC and $334.29 mWETH.
  • Moonbeam: Two assets had an average utilization of more than 75%: USDC.wh (81.16%) and xcUSDT (76.91%). Three assets experienced liquidations: mFRAX ($154.81), mDOT ($70.72), and mGLMR ($10.08).
  • Moonriver: FRAX was, again, the only asset that experienced an average utilization of >75%, coming in at 102.41%. There were no asset liquidations.

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Forum post: Guantlet Guardian - Increase Caps for Native USDC on Base

Author: Gauntlet

Summary: On Monday, Gauntlet made a post to inform the community that they would use Cap Guardian to change the USDC supply cap (from 20,000,000 to 40,000,000) and borrow cap (from 18,200,000 to 36,400,000). This comes after both cap usages increased over the 75% threshold. USDC supply increased exponentially in the days leading up to the forum post.

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Forum post: Guantlet Guardian - Increase WETH Supply and Borrow Caps

Author: Gauntlet

Summary: On Saturday, Gauntlet also used Cap Guardian to increase Supply and Borrow caps for wETH from 18,000 to 22,000 (supply) and 14,000 to 16,000 (borrow). Both cap usages increased over the 75% threshold. You can find the corresponding transactions on Basescan here and here.

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Forum post: MIP-M23 and MIP-M24: Multichain Governor and WELL Migration

Author: elliot

Summary: Last week, contributor Solidity Labs began a series of governance proposals to enable multichain governance for Moonwell. After MIP-M21 (the first proposal regarding multichain governance) passed, two new proposals were created. MIP-M23 proposed to transfer power from the old governor to the new multichain governor and create the multichain version of WELL (among other implementation details). MIP-M24 was created to accept ownership of the contracts and finalize the new governor’s abilities. On Monday, @curly sought clarification on the implementation details of the pair of MIPs. First, there was concern that raising the minimum proposal threshold would increase the barrier to entry for users attempting to contribute to governance. Curly suggested that this implementation could be tested on the Moonriver deployment before bringing it to Moonbeam/Base. In response, Elliot from Solidity Labs confirmed that multichain governance has been tested on Base Sepolia and Moonbase testnets. Concerning the increase in the minimum proposal threshold, this change would be implemented due to the new feature allowing users to have three active proposals at the same time. Increasing the proposal threshold would deter malicious actors from creating too many proposals. Lastly, he confirmed that the quorum will remain unchanged at 100M WELL. Curly rebutted, stating that the risk of malicious actors creating multiple proposals does not warrant raising the threshold.

Outcome: Both MIP-M23 and MIP-M24 went live for an on-chain vote on Monday. Both proposals passed.

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Forum post: MIP-M25 Base Safety Module Activation

Author: elliot

Summary: Following the vote to implement the Multichain Governor contract (MIP-M24) and the xERC20 standard for multichain WELL, MIP-M25 aims to enable rewards for users in the Safety Module with the new WELL token on Base. Elliot mentioned that prior to this going live, the community should be given enough time to bridge Wormhole-wrapped WELL from Base to Moonbeam and back in the Base-native form.

Outcome: Solidity Labs will create a proposal that sets and funds rewards for Safety Module Stakers. Be on the lookout for Warden Finance’s recommended initial reward speeds.

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Forum post: Gauntlet Guardian - wstETH Recs

Author: Gauntlet

Summary: Gauntlet announced they would use Cap Guardian to increase the supply caps for wstETH from 2100 to 3000. Previously, the supply cap increased over the 75% threshold. Further, there were considerations for the correlated assets borrowed from the top wstETH suppliers and an exponential increase in the asset’s circulating supply on Base since the start of the year. View the transaction on Basescan here.

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Upcoming Events in Governance

Monthly Governance Call

This Thursday

Look for the next Monthly Governance Call in Discord on the first Thursday, April 4th.

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10

Weekly Governance Update: Week of April 1, 2024

The first week of April included risk analysis and cap adjustments, the final steps in the series of multichain governance proposals, and the kickoff of a $PINK airdrop campaign.

Here are the highlights:

Contributor Updates

Forum post: Gauntlet’s Base/Moonbeam/Moonriver Weekly Market Update

Author: Gauntlet

Summary: In the last weekly recap, Gauntlet released their regular update for risk parameters across the three Moonwell deployments. These updates are meant to adjust important asset parameters (e.g. collateral factors and borrow caps) to balance risk and capital efficiency. On Monday, three MIPs were created to enact these changes on their respective chains: MIP-B15, MIP-M25, and MIP-R15.

  • MIP-B15 changes:
    • Increase ETH Supply Cap from 12,500 to 18,000
    • Increase ETH Borrow Cap from 10,500 to 14,000
    • Increase wstETH Supply Cap from 1800 to 2100
    • Increase wstETH Borrow Cap from 800 to 900
    • Increase USDbC Reserve Factor from 15% to 20%
    • USDC IR Curve adjustments
  • MIP-M25 changes:
    • Increase xcUSDC Collateral Factor from 10% to 15%
    • Decrease GLMR Collateral Factor from 58% to 57%
    • Decrease GLMR Borrow Cap from 22.5m to 10m
    • Decrease WBTC.wh Borrow Cap from 50 to 5
    • Decrease WETH.wh Borrow Cap from 500 to 100
    • Increase xcUSDT Reserve Factor from 20% to 25%
    • Increase xcUSDC Reserve Factor from 20% to 25%
    • Stablecoin IR Curve adjustments
  • MIP-R15 changes:
    • Increase FRAX Reserve Factor from 15% to 25%
    • Decrease FRAX Collateral Factor from 57% to 53%
    • Decrease MOVR Borrow Cap from 40,000 to 20,000

Outcome: All three proposals passed and either entered the 24-hour vote collection period (for Moonbeam and Base) or the 24-hour Timelock (Moonriver).

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Forum post: MIP-B16 Base Safety Module Activation

Author: elliot

Summary: Last week, Elliot introduced MIP-B16 to enable rewards for users in the Safety Module with the new WELL token on Base. This proposal comes off the heels of three other successful proposals related to multichain governance: MIP-M21 (Upgrade Wormhole Bridge Adapter on Moonbeam) and MIP-M23/MIP-M24 (Multichain Governor and WELL migration). MIP-B16 went up for an on-chain vote on Monday.

Outcome: MIP-B16 passed with 100% consensus. However, the original MIP-B16 contained an error that prevented execution. On Saturday, the proposal was re-submitted for an onchain vote.

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Forum post: Gauntlet Guardian - WETH, wstETH, and cbETH cap increases

Author: Gauntlet

Summary: Gauntlet posted on Tuesday that they will use Cap Guardian to increase the following caps:

  • WETH Supply Cap from 22,000 to 24,000
  • WETH Borrow Cap from 16,000 to 20,000
  • cbETH Supply Cap from 6,000 to 7,200
  • cbETH Borrow Cap from 1,800 to 2,100
  • wstETH Supply Cap from 3,000 to 4,000
  • wstETH Borrow Cap from 900 to 1,250

You can find the transactions here and here.

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Forum post: Gauntlet Base/Moonbeam/Moonriver Weekly Market Update

Author: Gauntlet

Summary: Gauntlet posted a weekly update on Friday for the Moonwell markets covering the previous week.

  • Base: Only one asset had an average borrow/supply cap usage of over 75%: rETH (98.81% supply cap). The deployment had no asset liquidations in the past week.
  • Moonbeam: No assets with an average utilization of >75% were reported; no asset liquidations were reported.
  • Moonriver: No assets with an average utilization of >75% were reported; no asset liquidations were reported.

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Delegate Updates

Forum post: Moonwell is PINK Campaign Details

Author: Curly

Summary: On Thursday’s governance call, Curly mentioned that an update was coming soon detailing the $PINK airdrop campaign. Those details arrived on Saturday in a forum post where he informed the community that Moonwell had been granted 1.2M $PINK. Now, users can complete tasks that will qualify them to receive a share of the 1.2M pool. Those tasks include engaging with the campaign announcement and completing the Galxe Campaign (holding specific amounts of mGLMR, mDOT, or stkWELL or voting on a proposal).

For exact task requirements, campaign dates, and other details, refer to the forum post above.

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Upcoming Events in Governance

Monthly Governance Call

First Thursday of May

Look for the next Monthly Governance Call in Discord on the first Thursday, May 2nd.

11

Weekly Governance Update: Week of April 8, 2024

The second week of April included risk analysis and cap adjustments, the activation of staking rewards on the Base Safety Module, and an update to the Nomad exploit recovery.

Here are the highlights:

Delegate Updates

Forum post: MIP-M26 and MIP-R16

Author: Curly

Summary: On Tuesday, delegate Curly submitted a pair of rewards speed proposals. This type of proposal is submitted every 4 weeks and aims to rebalance liquidity incentives and maintain healthy levels of rewards on Moonbeam and Moonriver. These proposals aren’t required on Base as Warden is serving as the incentives admin for Moonwell’s Base deployment.

MIP-M26 details that 425,686,632 WELL are staked in the Safety Module. This proposal intends to keep emissions the same and emit 6,778,846 WELL over the next 28 days. The estimated APR will remain the same at ~20.77%. For the new DEX Liquidity Pool Rewarder contract, the estimated APR would be set at ~53.59%, or 25,755.49 WELL per day. xcUSDC continues to be prioritized over USDC.wh.

MIP-R16 seeks to adjust the rewards on the Safety Module to emit 2,421,211 MFAM over the next 28 days. The DEX Rewarder would emit 2,725,903 MFAM over the next 28 days. Various assets had supply-side rewards adjustments:

  • The GLMR market supply side reward would increase from 13.10% to 13.86% and the rate of WELL incentives (supply side) would increase from 2,215,384.47 WELL / cycle to 2,353,846 WELL / cycle. The GLMR market incentives (supply side) would increase from 33,639.60 GLMR / cycle to 35,742.08 GLMR / cycle.
  • The xcDOT market supply side reward would increase from 13.47% to 13.91% and the rate of WELL incentives (supply side) would increase from 2,076,922.94 WELL / cycle to 2,146,153.71 WELL / cycle. The GLMR market incentives (supply side) would increase from 31,537.13 GLMR / cycle to 32,588.37 GLMR / cycle.
  • The xcUSDT market would remain unchanged.
  • The FRAX market would remain unchanged.
  • The ETH.wh market would remain unchanged.
  • The BTC.wh market supply side reward would decrease from 4.22% to 2.11% and the rate of WELL incentives (supply side) would decrease from 553,846.12 WELL / cycle to 276,923.06 WELL / cycle. The GLMR market incentives (supply side) would decrease from 8,409.90 GLMR / cycle to 4,204.95 GLMR / cycle.
  • The USDC.wh market would remain unchanged.
  • The xcUSDC market supply side reward would increase from 32.73% to 37.97% and the rate of WELL incentives (supply side) would increase from 415,384.59 WELL / cycle to 484,615.35 WELL / cycle. The GLMR market incentives (supply side) would increase from 6,307.43 GLMR / cycle to 7,358.66 GLMR / cycle.
  • The MOVR market (Moonriver) would remain unchanged.
  • The xcKSM market (Moonriver) would remain unchanged.
  • The FRAX market (Moonriver) would remain unchanged.

Outcome: MIP-M26 and MIP-R16 passed their onchain voting period. However, MIP-M26 contained misconfigured calldata and the proposal went back up for an onchain vote on Sunday.

Contributor Updates

Forum post: MIP-B16 Base Safety Module Activation

Author: elliot

Summary: Solidity Labs originally introduced a proposal to enable rewards for users staking in the Safety Module with the new WELL token on Base. MIP-B16 was overwhelmingly passed by the community. However, it contained an error that prevented execution. On April 6th, the proposal was re-submitted for an onchain vote.

Outcome: The proposal re-submission passed its onchain voting period.

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Forum post: Gauntlet Guardian - Borrow Cap Recommendations for xcUSDC and WETH Supply Caps

Author: Gauntlet

Summary: Gauntlet posted on Friday that they will use Cap Guardian to increase the borrow cap for xcUSDC from 400,000 to 560,000. As noted in their post, this increase is intended to accommodate future growth given the asset’s circulating supply increase. You can find the Moonbeam transaction here.

Gauntlet also used Cap Guardian to increase the WETH supply cap from 24,000 to 28,000. The Basescan transaction can be found here.

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Forum post: RFP: Redemption and Reallocation of Nomad Collateral and Protocol Reserves for FRAX Market Enhancement

Author: elliot

Summary: In a multi-month effort to redeem dormant assets impacted by the Nomad exploit and to bolster the liquidity of the FRAX market on Moonbeam, Elliot announced on Friday that 2.8M FRAX have paid off bad debt. You can view the Moonbeam transaction here.

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Forum post: Gauntlet Base/Moonbeam/Moonriver Weekly Market Update

Author: Gauntlet

Summary: Gauntlet posted a weekly update on Friday for the Moonwell markets covering the previous week.

  • Base: Two assets had an average borrow/supply cap usage of over 75%: WETH (78.11% supply cap) and rETH (99.56% supply cap). The deployment had no asset liquidations in the past week.
  • Moonbeam: Only one asset had an average utilization greater than 75%: USDC.wh (83.18%). No liquidated assets were reported.
  • Moonriver: Only one asset had an average utilization greater than 75%: FRAX (91.76%). No liquidated assets were reported.

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Upcoming Events in Governance

Monthly Governance Call

First Thursday of May

Look for the next Monthly Governance Call in Discord on the first Thursday, May 2nd.

12

Weekly Governance Update: Week of April 15, 2024

The third week of April included risk analysis/cap adjustments and the proposed support of a new asset market on Base.

Here are the highlights:

Contributor Updates

Forum post: Add Aero Market on Base

Author: Gauntlet

Summary: Gauntlet proposed on Friday to onboard AERO as collateral on Moonwell’s Base deployment. Cited reasons for this proposal included the growth of AERO liquidity on Base and market demand. AERO is the native utility token of Aerodrome Finance, a next-generation AMM designed to serve as Base’s central liquidity hub. Gauntlet released risk parameters for the token, including a supply cap of 6,000,000 and a borrow cap of 3,000,000. See the post above for more details on the asset’s proposed market on Base.

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Forum post: Gauntlet Base/Moonbeam/Moonriver Weekly Market Update

Author: Gauntlet

Summary: Gauntlet posted a weekly update on Friday for the Moonwell markets covering the previous week.

  • Base: Three assets had an average supply cap usage of over 75%: cbETH (77.43%), wstETH (79.32%), and rETH (99.80%). The deployment had three asset liquidations in the past week: mWETH ($42.69K), mwstETH ($19.77K), and mUSDC ($266.10).
  • Moonbeam: No assets had an average utilization greater than 75%. Five liquidated assets were reported: mGLMR ($133.44K), mDOT ($46.85K), mxcUSDC ($9.24K), mWBTC.wh ($824.13), mcxUSDT ($437.27), and mFRAX ($32.35).
  • Moonriver: Only one asset had an average utilization greater than 75%: FRAX (75.79%). Three liquidated assets were reported: mMOVR ($13.89K), mFRAX ($10.89K), and mxcKSM ($9.79K).

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Forum post: Rebalancing of Base Liquidity Incentives

Author: Warden Finance

Summary: On Saturday, contributor Warden Finance made a forum post to inform the community of various Base-related updates. Following the safety module successfully deploying on Base, Wormhole WELL rewards were deprecated in favor of native WELL rewards. Additionally, a new rewards pool of 50K USDC is allocated towards native USDC market rewards over epoch #10. In an update to the DAI & rETH liquidity situation brought up in past updates, both assets’ circulating supplies have improved. For more information on the applied changes and various incentives, see the above forum post.

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Integration Updates

Forum post: MIP-MD0: Integrate Moonwell on Mode Mainnet

Author: Deez

Summary: On Saturday, first-time poster Deez brought to the forums a proposal to expand the Moonwell protocol to Mode mainnet, an optimistic rollup on the OP Superchain. Noted features of Mode include integrated Liquid Restaking Tokens, sequencer fee sharing with developers, and “DevDrops,” rewarding and incentivizing participants. For more on the advantages and implementation details of this proposed expansion, check out Deez’s forum post.

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Upcoming Events in Governance

Monthly Governance Call

First Thursday of May

Look for the next Monthly Governance Call in Discord on the first Thursday, May 2nd.

13

Weekly Governance Update: Week of April 22, 2024

The fourth week of April included risk analysis and cap adjustments from Gauntlet, along with the next steps in adding a proposed AERO market on Base.

Here are the highlights:

Contributor Updates

Forum post: Add AERO Market on Base

Author: Gauntlet

Summary: On Monday, Gauntlet created a follow-up Snapshot signal vote based on last week’s forum post. The proposal details adding an AERO market to Moonwell on Base (covered in the weekly update). In the post, Gauntlet offered risk analysis and provided a rationale behind this effort, including the strong market performance and liquidity of AERO.

Outcome: The Snapshot proposal successfully passed with 94.09% consensus.

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Forum post: Gauntlet Guardian - WETH and USDC Supply and Borrow Caps

Author: Gauntlet

Summary: Gauntlet announced on Monday that they will use Cap Guardian to increase the supply caps for WETH and USDC from 28,000 to 40,000 and 40,000,000 to 56,000,000, respectively. The WETH and USDC borrow caps were also increased from 20,000 to 28,000 and 36,400,00 to 52,000,000, respectively. You can find the Base transactions here and here.

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Forum post: Gauntlet Guardian - rETH Caps

Author: Gauntlet

Summary: Gauntlet announced on Friday that they will use Cap Guardian to increase the rETH borrow cap from 700 to 1000 and the rETH supply cap from 200 to 250. Cited reasons include the caps reaching >75% utilization and an exponential increase in the circulating supply on Base. You can find the transactions here and here.

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Upcoming Events in Governance

Monthly Governance Call

First Thursday of May

Look for the next Monthly Governance Call in Discord on the first Thursday, May 2nd.