Weekly Governance Recaps

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.

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.

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.

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.

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.