Weekly Governance Update: Week of February 12, 2024
The second week of February included continued risk parameter changes from contributors, new integrations, and the rebalancing of token liquidity incentives. Here are the highlights:
Contributor Updates
Risk Service Update: Gauntlet Guardian - Increase wstETH caps on Base
Author: Gauntlet
Summary: This post notified the community that Gauntlet would be utilizing their role as a Cap Guardian for Base to increase the borrow and supply caps for wstETH from 1300 to 1600 and 500 to 700, respectively. With Gauntlet’s role as a Cap Guardian, the risk service provider can make necessary alterations to supply and borrow caps quickly and efficiently. Accordingly, there were no active proposals that went live to enact these changes.
Outcome: Guardian transactions were executed on-chain here and here on February 14, 2024.
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Borrow Cap Updates: Gauntlet Guardian - cbETH Borrow Cap Recommendations on BASE
Author: Gauntlet
Summary: Gauntlet notified the community that it would use Cap Guardian for Base to increase the borrow cap for cbETH from 1000 to 1800. There were no active proposals that went live to enact these changes.
Outcome: The Guardian transaction was executed on-chain here on February 17, 2024.
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Recommendations: Gauntlet’s Weekly Market Update (2024-02-02)
Author: Gauntlet
Summary: In the most recent market update from Gauntlet, no parameter changes were recommended for Base. DAI was the only asset found to have an average supply cap usage of over 75%, landing at 79.8% in the past week. mWETH and mUSDC had $676.56 and $213.74 in liquidations, respectively.
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Forum Posts: Who is Boardroom and Why Are We Here?; Monthly Governance Reports; Weekly Governance Recaps; Monthly Governance Calls
Author: Boardroom
Forum Links:
Summary: To kick off Boardroom’s partnership with Moonwell, the governance facilitator established three ongoing forum threads and an introduction post. On Monday, the first Weekly Governance Update went live, recapping the week of February 5. On Thursday, Boardroom hosted the first Monthly Governance Community Call, with contributions from Warden Finance, Solidity Labs, Gauntlet, and two delegates (@curly and @coolhorsegirl). You can find a recap and recording of the call in the monthly governance call thread.
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Forum Post: Base, Moonbeam, and Moonriver Weekly Market Update - (2024-02-09 through 2024-02-15)
Author: Gauntlet
Summary: Gauntlet provided risk parameter information for the three network deployments. For Base, DAI and rETH were the only assets with over 75% average supply cap usage, at 79.4% and 86.25%, respectively. There were no liquidations on Base. On Moonbeam, three assets had an average utilization of greater than 75%: FRAX (106.35%), USDC.wh (80.82%), and xcUSDT (81.09%). The network did have a few liquidations: $4.11k mFRAX, $262.41 mGLMR, and $42.18 mDOT. On Moonriver, no assets had an average utilization of greater than 75%. There was $1.68k of mMOVR liquidated.
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Delegate Activity
Proposal: MIP-R13 Rebalancing of Moonriver Token Liquidity Incentives
Author: Curly
Forum Link: MIP-R13 Rebalancing of Moonriver Token Liquidity Incentives
Summary: In the first of two proposals by Curly on February 13, MIP-R13 was automated and generated by the Moonwell Market Reward Adjustment Tool. If passed, this proposal would adjust the rewards on the Safety Module to decrease emissions by -52.70% and emit 2,431,211 MFAM over the next 28 days. Similarly, the rewards on the Dex Rewarder would decrease emissions by -52.70% and emit 2,725,903 MFAM over the next 28 days. It also included adjustments to the supply-side incentives of MFAM/MOVR and xcKSM/FRAX. After the MFAM liquidity incentives Snapshot passed last week, the community began using MFAM originally set aside for grants to provide supply liquidity. This proposal reflects the need to make adjustments to the amount of MFAM released per cycle and to decrease the average reward per pool to extend the runway. Preference was given to MOVR and KSM, lowering the rewards for FRAX.
Outcome: On-chain voting ended on February 16. Although the vote was split, the quorum was met and the proposal passed with 57.7% “For.”
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Proposal: MIP-M18 Rebalancing of Moonbeam Liquidity Incentives
Author: Curly
Summary: Curly’s second discussion was also an automated proposal generated by the Moonwell Market Reward Adjustment Tool. If passed, this proposal would keep the rewards on the Safety Module the same and emit 6,778,846 WELL over the next 28 days. Similarly, the rewards on the Dex Rewarder would keep rewards the same and emit 721,154 WELL over the next 28 days. No changes were proposed to the supply side/borrow side of GLMR, xcDOT, xcUSDT, FRAX, ETH.wh, nor BTC.wh APRs. There were changes for the following markets: USDC.wh had a supply side APR adjustment of 15.1% to 12.37%; xcUSDC had a supply side APR adjustment of 7.75% to 280.76%. Curly noted that the large change to USDC APRs is due to increasing the liquidity on Moonbeam, and that preference should be incentivized away from the Wormhole bridged USDC pool to the xcUSDC pool.
Outcome: On-chain voting ended on February 16, with a 100% consensus “For” vote.
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Integration Updates
Forum Post: Migrating the Apollo Vault to Aera V2
Author: Aera
Summary: This proposal is from Aera Finance, a non-custodial, autonomous, rebalancing treasury management protocol. It seeks to migrate the existing Apollo Aera vault from Aera V1 to Aera V2, maintaining a 15% volatility target strategy. Aera V2 is live in production and comes with new features, including the ability to generate yield on stablecoins, support for a broader range of assets and strategies, an enhanced security framework, and the elimination of Impermanent Loss. The Aera team is proposing that the community migrate the existing V1 vault with $290k to V2. The team then discussed implementation details for Moonwell Apollo and the proposed benefits of migration. The proposal includes the option to leverage Aave for generating a yield on the USDC holdings in the vault; there will be three options for voting: Yae with Aave USDC, Yae w/o Aave USDC, and Nae don’t upgrade to Aera V2.
Outcome: TBD
Upcoming Events in Governance
Monthly Governance Call
First week of March
Make sure to look out for the next Monthly Governance Call on Thursday, March 7th, 2024 hosted in Discord.