Weekly Governance Recaps

Weekly Governance Update: Week of May 13, 2024

The third week of May included risk analysis/cap adjustments, Base updates from Warden Finance, and more.

Here are the highlights:

Delegate Updates

Forum post: MIP-M28 and MIP-R18

Author: Curly

Summary: In the last weekly update, delegate Curly submitted a pair of rewards speed proposals to rebalance liquidity incentives and maintain healthy levels of rewards on Moonbeam and Moonriver. Both proposals were passed. However, the proposal focused on Moonbeam, MIP-M28, failed due to a technical issue. The votes cast on Base were not successfully emitted back to Moonbeam. As a result, the proposal was not executed and its reward speed updates to Moonbeam markets were not actioned. The implications are (1) the rewards on Moonbeam markets will remain unchanged until the next reward speed proposal is executed onchain and (2) WELL rewards were re-enabled on the Stellaswap DEX pool on May 17th. Moonwell contributors will implement additional checks and mitigation measures to ensure that similar issues don’t happen in the future.

Integration Updates

Forum post: Add MFAM on Optimisim

Author: oksana8593

Summary: On Wednesday, first-time poster @oksana8593 proposed adding the Moonriver-native token MFAM to Optimism. Cited motivations include liquidity growth for the token and positive results from upgrading the WELL token to be Base-native.

Forum post: Fractional Governance

Author: CryptoAbe

Summary: On Wednesday, @CryptoAbe created a forum discussion centered around a “fractional governance” system that is meant to be more inclusive. One of the ideas in the post includes allowing more wallets to participate in governance by fractionalizing the required quorum.

Contributor Updates

Forum post: Gauntlet Guardian - AERO Cap Updates

Author: Gauntlet

Summary: On Wednesday, Gauntlet announced they would use Cap Guardian to adjust the Supply and Borrow Cap for AERO. The Supply Cap was increased from 9M to 12M and the Borrow Cap from 5M to 8M.

Forum post: Warden Finance - Base Liquidity Incentives

Author: Warden Finance

Summary: On Friday, Warden Finance provided their regular updates on Base liquidity incentives. A new rewards pool of 75K USDC was allocated towards native USDC market rewards over epoch #11. In other observations, Warden mentioned the healthy (yet unsupportive of further growth) levels of DAI and rETH onchain liquidity and that the AERO market utilization is beyond optimal levels. Further, LST market rewards have been shifted slightly towards mETH. For more market information and updated reward distribution figures, see the 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.

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