Weekly Governance Update: Week of Oct 19th, 2026
Two onchain proposals went up for a vote this week.
Proposals
MIP-X71
Summary: Anthias Labs’ October 15 risk parameter recommendations went onchain on Wednesday, together with a migration of the pause guardian role on Base and OP Mainnet to the F-ETH-SEC security council multisig. The proposal passed and was executed on Ethereum on Sunday, with the Base and OP Mainnet changes queued in the cross-chain timelock. It makes the following changes:
- Base: WELL collateral factor decreased to 35%, VIRTUAL to 50%, wrsETH to 35%, and AERO to 58% ahead of the AERO token migration. MORPHO moves to a flat 1% borrow rate with a 99% reserve factor, in line with cbBTC, cbETH, VIRTUAL and cbXRP, now that about 90% of MORPHO debt sits in insolvent accounts.
- OP Mainnet: VELO collateral factor decreased to 50%, OP to 55%, and wrsETH to 20%.
- Pause guardian: The pause guardian of the Comptroller and MultiRewardDistributor on Base and OP Mainnet moves to F-ETH-SEC, the 2-of-4 Safe that already holds the role on Ethereum. F-ETH-SEC is also submitted as guardian of the Moonwell MetaMorpho vaults still on the deprecated multisig, behind each vault’s 4-day timelock.
Quorum margin: 202.9M WELL cast against a 100M WELL quorum (+102.9M). 25.9M WELL voted for and 23.0K against; the remaining 177.0M came from a single abstaining address on Base, without which the proposal would not have reached quorum.
MIP-X72
Summary: The OEV Oracle Wrapper Update went onchain on Wednesday, passed, and was executed on Ethereum on Sunday, with the Base and OP Mainnet payloads queued in the cross-chain timelock. It updates Moonwell’s Chainlink OEV oracle wrappers on Ethereum, Base and OP Mainnet so that early access to a fresh oracle price is limited to the liquidation that pays for it. Until now, one liquidation could pay for a fresh price and leave it open to unrelated liquidations for the rest of the delay window, bypassing the OEV fee the protocol is meant to collect. The proposal makes the following changes:
- All chains: The Core OEV wrappers are redeployed with the updated logic and the affected markets (4 on Ethereum, 15 on Base, 8 on OP Mainnet) are repointed to them, keeping each wrapper’s existing configuration. Collateral factors, liquidation thresholds, interest rates, OEV fee settings and supported assets are unchanged.
- Base: Nine Core Markets move off the Chainlink SVR proxies for ETH/USD, BTC/USD and XRP/USD and onto the standard feeds, which read from the same aggregator, so prices are unchanged. The Base Morpho OEV wrappers for WELL, MAMO and stkWELL are upgraded in place.
Quorum margin: 210.6M WELL cast against a 100M WELL quorum (+110.6M). 33.5M WELL voted for and 2.3K against, with 177.1M abstaining, almost all of it from the same address.
Four super delegates posted their rationale for voting for both proposals on Thursday: Chidi (and on MIP-X72), PGov, Jor-el and Coolhorsegirl. PGov decoded both cross-chain payloads and confirmed that each call matches the proposal text.
Contributor Updates
Forum post: Risk Parameter Recommendations
Author: Anthias
Summary: On Monday, Anthias answered the community question from the week before about what happens to VELO collateral and loans on OP Mainnet if the VELO price feed stops or its liquidity goes to zero during the migration to the new AERO token.
- Oracle: If the Chainlink feed stops updating, the oracle keeps reporting the last valid price. There is no hard migration deadline and Anthias does not expect the feed to simply stop; if Chainlink announces a shutdown, Anthias will wind down the VELO market before it happens.
- Liquidity: DEX liquidity for legacy VELO is expected to thin but not reach zero soon. Redemption into the new token at roughly 0.044 AERO per VELO sets a price floor at parity, which gives arbitrageurs a reason to keep some liquidity in place. That does not guarantee enough depth for large liquidations, which is why the collateral factor is being stepped down (now 50% via MIP-X71).
Forum post: Weekly Market Updates
Author: Anthias
Summary: Anthias posted a weekly update on Friday for the Moonwell markets covering October 16 to 22.
- Base: Borrow caps remain at 0 across all markets, and utilization remains at cap on the MAMO, USDC, cbETH, EURC and USDS markets. AERO supply fell -22% (3.29M to 2.57M AERO) ahead of the token migration and cbBTC supply -10% (70.59 to 63.86 cbBTC), while tBTC utilization dropped from 17.22% to 9.94%. Gross bad-debt exposure is largest in cbBTC (~$4.48M), followed by USDC (~$2.35M). Liquidations were small: 115 liquidation events seized ~$1,988 in collateral, most of it VIRTUAL, down from ~$124K the week before.
- OP Mainnet: WETH borrows are up +291% (14.50 to 56.75 WETH) and wstETH supply +138% (36.49 to 86.78 wstETH), while OP utilization fell -97% and VELO utilization -65%. There were 12 liquidation events seizing ~$285 in collateral, mostly wrsETH.
- Ethereum: USDC supply is up +71% (163.88K to 280.44K) and USDC borrows +80% (133.35K to 239.95K), with WETH supply +9% and cbBTC supply +27%. No liquidations were reported.
Upcoming Events in Governance
Monthly Governance Call
There will be no governance call in October. With no significant updates to share this month, Moonwell contributors agreed to move the governance calls to a quarterly cadence, or as needed, with the next call planned for early December after the September–November quarterly report. Look for the announcement here on the forums, on X, and on Discord.