Weekly Governance Recaps

Weekly Governance Update: Week of July 29th, 2024

The final week of July included monthly recommendations from Gauntlet, monthly reward speed proposals, and several Liquid Staking/Restaking Token providers seeking integrations with Moonwell for their LSTs/LRTs.

Here are the highlights:

Contributor Updates

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

Author: Gauntlet

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

  • Base: Three assets had an average borrow/supply cap usage of over 75%: AERO (81.08% borrow cap and 82.03% supply cap), USDbC (75.94% supply cap) and rETH (99.35% supply cap). The deployment had $16,417.92 in liquidations across five assets in the past week: mAERO ($6.98K), mwstETH ($5.92K), mWETH ($3.25K), mUSDC ($261.77), and mcbETH ($6.15).
  • Moonbeam: No asset had an average utilization greater than 75%. The deployment had $7,546.87 in liquidations across three assets in the past week: mGLMR ($5.81K), mDOT ($1.38K), and mETH.wh ($356.87).
  • Moonriver: One asset had an average utilization greater than 75%: FRAX (84.98%). The deployment had $226.62 in liquidations in one asset in the past week: mMOVR.

Forum post: Gauntlet Base/Moonbeam/Moonriver Recommendations

Author: Gauntlet

Summary: Thursday, Gauntlet offered their monthly recommendations on risk parameters across the four Moonwell deployments.

  • Base: Supply and Borrow Caps for rETH were increased. Reserve Factors for rETH, wstETH, cbETH, USDC, and WETH were decreased, while the AERO Reserve Factor was increased. One IR curve was recommended to be adjusted: AERO (increased Multiplier & Jump Multiplier).
  • Optimism: Borrow and Supply Caps, Collateral Factors, Reserve Factors, and IR Parameters were set for all Optimism markets.
  • Moonbeam: Borrow Caps for USDC.wh, WBTC.wh, ETH.wh, and FRAX were decreased. The Reserve Factor for FRAX was increased.
  • Moonriver: One IR curve was recommended to be adjusted: FRAX (decreased Multiplier & Jump Multiplier).

For the exact quantitative changes and motivations behind these decisions, check out the forum post above.

Proposals: MIP-M35, MIP-B23, MIP-O02, and MIP-R22 - Automated Liquidity Incentives Proposals

Summary: On Wednesday, monthly “Reward Speed” proposals for Base, Optimism, Moonbeam, and Moonriver were submitted. These proposals rebalance liquidity incentives in an effort to maintain healthy levels of rewards on the networks. All proposals originally were passed, but MIP-B23 and MIP-O02 contained misconfigured calldata which prevented execution; both were re-submitted on Sunday.

  • The GLMR market (Moonbeam) WELL supply side incentives were decreased and borrow side incentives were increased. The GLMR supply side incentives were decreased and the borrow side incentives were increased. The total Supply APR and the total Borrow APR were increased.
  • The xcDOT market (Moonbeam) WELL supply side incentives were decreased and borrow side incentives were increased. The GLMR supply side incentives were decreased and the borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The FRAX market (Moonbeam) WELL supply side incentives were decreased and borrow side incentives were increased. The GLMR supply side incentives were decreased and the borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The ETH.wh market (Moonbeam) WELL supply side incentives were decreased and borrow side incentives were increased. The GLMR supply side incentives were decreased and the borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The WBTC.wh market (Moonbeam) WELL supply side incentives were decreased. The GLMR supply side incentives were increased. The total Supply APR was decreased.
  • The USDC.wh market (Moonbeam) WELL supply side incentives were decreased and borrow side incentives were increased. The GLMR supply side incentives were decreased and the borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The xcUSDT market (Moonbeam) WELL supply side incentives were decreased and borrow side incentives were increased. The GLMR supply side incentives were decreased and the borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The xcUSDC market (Moonbeam) WELL supply side incentives were decreased and borrow side incentives were increased. The GLMR supply side incentives were decreased and the borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The USDbC market (Base) WELL supply side and borrow side incentives were increased. The USDC borrow side incentives were increased. The total Supply APR and total Borrow APR were increased.
  • The USDbC market (Base) WELL supply side and borrow side incentives were increased. The USDC borrow side incentives were increased. The total Supply APR and total Borrow APR were increased.
  • The ETH market (Base) WELL supply side incentives were decreased and borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The cbETH market (Base) WELL supply side incentives were decreased and borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The DAI market (Base) WELL supply side incentives were decreased and borrow side incentives were increased. The USDC borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The USDC market (Base) WELL supply side incentives were decreased and borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The wstETH market (Base) WELL supply side incentives were decreased and borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The rETH market (Base) WELL supply side incentives were decreased and borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The AERO market (Base) WELL supply side incentives were decreased and borrow side incentives were increased. The total Supply APR was decreased and the total Borrow APR was increased.
  • The USDC market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The USDT market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The DAI market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The WBTC market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The ETH market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The wstETH market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The cbETH market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The rETH market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The OP market (Optimism) WELL supply side incentives were increased. The OP supply side incentives were increased. The total Supply APR was increased.
  • The MOVR market (Moonriver) MFAM supply side incentives were increased. The total Supply APR was decreased.
  • The xcKSM market (Moonriver) MFAM supply side incentives were decreased. The total Supply APR was decreased.
  • The FRAX market (Moonriver) total Supply APR was decreased.

Integration Updates

Forum post: Block Analitica & B.Protocol: Moonwell Flagship USDC - wstETH/USDC Market Listing with Market Price Oracle

Summary: As Block Analitica’s and B.Protocol’s roles as Curator and Allocator of the Moonwell Flagship USDC Vault, the teams have decided to transition from the wstETH/USDC market using an exchange rate oracle to the new wstETH/USDC market which uses a market price oracle. This is the teams’ second action which exercises their respective roles following a similar forum post earlier in July. For more on the rationale behind this decision, the intended benefits, market parameters, and the explanation of an option to veto, see the forum post above.

Forum post: Add wrsETH market to Moonwell on Base

Summary: A representative for Kelp DAO created a forum post on Tuesday with the intention of adding Kelp DAO’s liquid restaking token (LRT), wrsETH, to the Moonwell markets on Base. KelpDAO is a liquid restaking protocol built on top of EigenLayer; users can stake and restake on the platform to earn rewards and DeFi yields. For more information on the token’s traction, benefits to the community, market risk assessment, and other metrics, see the forum post above.

Forum post: Add ezETH Market to Moonwell on Base

Summary: A representative for Renzo created a forum post on Thursday with the intention of adding Renzo’s liquid restaking token (LRT), ezETH, to the Moonwell markets on Base. Renzo is a strategy manager and liquid restaking protocol built on top of EigenLayer and Symbiotic; users can restake on the platform to earn rewards through ezETH and pzETH, for EigenLayer and Symbiotic respectively. For more information on the token’s traction, benefits to the community, market risk assessment, and other metrics, see the forum post above.

Forum post: Add weETH Market to Moonwell on Base

Summary: In the first half of June, Justin from Ether.fi created a forum discussion with the intention of adding a weETH market to Moonwell’s Base deployment. On July 25th, the team submitted a successful Snapshot to gauge the community’s sentiment on this proposal.

This week, Gauntlet created their initial weETH recommendations. In short, they recommend onboarding the asset as collateral on the Base deployment. For their recommended risk parameters, IR parameters, support data, and more, see the forum post above.

Upcoming Events in Governance

Monthly Governance Call

The first Thursday of each month

Look for the next Monthly Governance Call in Discord on the first Thursday of the month, September 5th.

August’s Governance Participant Galxe campaign

Winners of the random drawing for July’s campaign were sent funds last week. Don’t miss out on the final opportunity to win a share of the $2000 prize pool for this month’s governance campaign!