Weekly Governance Recaps

Weekly Governance Update: Week of April 29, 2024

The final days of April & first week of May included risk analysis/cap adjustments, a proposal for a new market on Base, and a successful onchain proposal that gathered the fourth-highest voter turnout for Moonwell governance.

Here are the highlights:

Integration Updates

Forum post: Add MAI Market on Base (Borrow-Only)

Author: Benjamin918

Summary: On Monday, new poster @Benjamin918 made a proposal to add MAI as a borrow-only asset to Moonwell. If passed, the CF for the asset would be set to 0%. MAI is a Base-native CDP stablecoin, mintable via the peg stability module or CDP loans (cbETH, wstETH, or AERO). For further information on how the market would be bootstrapped, use cases for the market, risk assessment, and more, visit the post above. On Friday, Gauntlet provided risk analysis for the proposed market in which factors such as liquidity, complexity of incentivization, and liquidations were considered.

Forum post: Aera Moonwell Pilot

Author: Aera

Summary: In a weekly update from March, it was reported that Aera’s proposal to migrate the existing Apollo vault from Aera V1 to V2 had passed with a “Yae, upgrade with Aave USDC” outcome. Shortly after that, Aera updated the community that the vault was live. On Monday, the team provided the community with an update on the state of the vault. They gave a breakdown of the vault’s assets, totaling $311,232. Further, the team analyzed the observed volatility versus the target volatility of 15% and gave vault APY statistics.

Contributor Updates

Forum post: Add AERO Market on Base

Author: Gauntlet

Summary: After a successful Snapshot signal vote, Gauntlet created an onchain proposal for MIP-B17 Onboard AERO as collateral on Base deployment on Monday. If passed, the proposal would add the native token of Aerodrome Finance as collateral to Moonwell’s Base deployment.

Outcome: MIP-B17 was overwhelmingly passed. Notably, the proposal gathered the most onchain votes since August 2023.

Forum post: Gauntlet Guardian - wstETH cap increases

Author: Gauntlet

Summary: Gauntlet announced on Monday that they will use Cap Guardian to increase the wstETH supply cap from 4,000 to 5,000. The Basescan transaction can be found here.

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

Author: Gauntlet

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

  • Base: Two assets had an average supply cap usage of over 75%: cbETH (75.71%) and wstETH (85.83%). The deployment had three asset liquidations in the past week: mWETH ($1.82K), mUSDC ($1.71K), and mwstETH ($279.38).
  • Moonbeam: One asset had an average utilization greater than 75%: xcUSDT (77.98%). Two liquidated assets were reported: mGLMR ($12.58K) and mDOT ($404.72).
  • Moonriver: One asset had an average utilization greater than 75%: FRAX (88.85%). Two liquidated assets were reported: mMOVR ($107.03) and mxcKSM ($95.88).

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

Author: Gauntlet

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

  • Base: Recommended borrow caps for cbETH, wstETH, and rETH were increased. The supply cap and borrow cap for USDbC were decreased. The AERO CF was set to 65%. IR parameters were proposed to be changed for cbETH, wstETH, and rETH.
  • Moonbeam: The borrow cap for USDC.wh was decreased. Reserve factors for xcUSDT, xcUSDC, and USDC.wh were increased. Collateral factors for USDC.wh, WBTC.wh, and ETH.wh were decreased. IR parameters were proposed to be changed for USDC.wh.
  • Moonriver: The reserve factors for WMOVR, xcKSM, and FRAX were increased. The collateral factor for FRAX was decreased. The borrow cap for FRAX was decreased. IR parameters were proposed to be changed for FRAX and xcKSM.

The cap changes will be executed via Cap Guardian. For exact numerical changes and further information on Gauntlet’s rationale behind these changes, visit the forum post above.

Upcoming Events in Governance

Monthly Governance Call

First Thursday of June

Look for the next Monthly Governance Call in Discord on the first Thursday of the month, June 6th.

1 Like