Weekly Governance Recaps

Weekly Governance Update: Week of August 26th, 2024

The final week of August included monthly recommendations from Gauntlet, automated risk parameter proposals, and Snapshots to potentially add Kelp DAO’s wrsETH LRT and Circle’s EURC stablecoin to Moonwell markets.

Here are the highlights:

Contributor Updates

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: Three assets had an average borrow/supply cap usage of over 75%: AERO (92.25% supply cap and 87.22% borrow cap), USDbC (89.56% supply cap), and rETH (76.47% supply cap). The deployment had $20,197.79 in liquidations across four assets in the past week: mAERO ($18.85k), mUSDC ($1.12k), mWETH ($133.19), and mrETH ($14.60).
  • Optimism: No asset had an average utilization greater than 75%. No liquidations were reported.
  • Moonbeam: No asset had an average utilization greater than 75%. The deployment had $27.94 in liquidations across one asset in the past week: mETH.wh.
  • Moonriver: One asset had an average utilization greater than 75%: FRAX (81.69%). No liquidations were reported.

Forum post: Gauntlet Base/Moonbeam/Moonriver Monthly Recommendations

Author: Gauntlet

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

  • Base: Both supply and borrow caps for AERO were increased. Collateral Factors for WETH, cbETH, wstETH, and rETH were increased while the Collateral Factor USDbC was decreased. The Reserve Factor for USDbC was increased. IR parameters were recommended to be adjusted: AERO (increased Jump Multiplier) and USDC (decreased Multiplier).
  • Optimism: WBTC Borrow Cap was decreased, WBTC Reserve Factor was increased, and WBTC Collateral Factor was decreased. IR parameters were recommended to be adjusted: USDC (increased Kink, decreased Multiplier, and increased Jump Multiplier), USDT (increased Kink, decreased Multiplier, and increased Jump Multiplier), and DAI (increased Kink, decreased Multiplier, and increased Jump Multiplier).
  • Moonbeam: Borrow caps for USDC.wh, xcDOT, WETH.wh, and FRAX were decreased. Collateral Factors for USDC.wh, WETH.wh, WBTC.wh, and FRAX were decreased. One IR curve was recommended to be adjusted: FRAX (decreased Kink and increased Multiplier).
  • Moonriver: Borrow caps for WMOVR and FRAX were decreased.

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

Proposals: MIP-B26, MIP-O06, MIP-O07, MIP-M37, and MIP-R24 - 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.

  • The USDbC market (Base) WELL supply and borrow APR were decreased. The USDC borrow APR was increased.
  • The ETH market (Base) No changes
  • The cbETH market (Base) WELL supply and borrow APR were decreased.
  • The DAI market (Base) WELL supply and borrow APR were increased. The USDC borrow APR was increased.
  • The USDC market (Base) WELL supply and borrow APR were increased.
  • The wstETH market (Base) WELL supply and borrow APR were decreased.
  • The rETH market (Base) WELL supply and borrow APR were decreased.
  • The AERO market (Base) WELL supply and borrow APR were increased.
  • The weETH market (Base) WELL supply and borrow APR were increased. The USDC borrow APR was increased.
  • The USDC market (Optimism) WELL supply and borrow APR were increased. The OP supply APR was decreased and the OP borrow APR was increased.
  • The USDT market (Optimism) WELL supply and borrow APR were increased. The OP supply APR was decreased and the OP borrow APR was increased.
  • The DAI market (Optimism) WELL supply APR was increased. The OP supply APR was decreased and the OP borrow APR was increased.
  • The WBTC market (Optimism) WELL supply and borrow APR were increased. The OP supply APR was decreased.
  • The ETH market (Optimism) WELL supply and borrow APR were increased. The OP supply APR was decreased and the OP borrow APR was increased.
  • The wstETH market (Optimism) WELL supply APR was decreased and borrow APR was increased. The OP supply APR was decreased and the OP borrow APR was increased.
  • The cbETH market (Optimism) WELL supply APR was decreased. The OP supply APR was decreased.
  • The rETH market (Optimism) WELL supply APR was decreased and borrow APR was increased. The OP supply APR was decreased and the OP borrow APR was increased.
  • The OP market (Optimism) WELL supply and borrow APR were increased. The OP supply APR was decreased and the OP borrow APR was increased.
  • The weETH market (Optimism) WELL supply APR was increased. The OP supply APR was increased.
  • The VELO market (Optimism) WELL supply and borrow APR were increased. The OP supply and borrow APR were increased.
  • The GLMR market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR supply and borrow APR were decreased.
  • The xcDOT market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR supply and borrow APR were decreased.
  • The FRAX market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR supply and borrow APR were decreased.
  • The ETH.wh market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR supply and borrow APR were increased.
  • The WBTC.wh market (Moonbeam) WELL supply APR was decreased. The GMLR supply APR was increased.
  • The USDC.wh market (Moonbeam) WELL supply APR was increased. The GMLR supply and borrow APR were increased.
  • The xcUSDT market (Moonbeam) WELL supply and borrow APR were increased. The GMLR supply and borrow APR were increased.
  • The xcUSDC market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR supply and borrow APR were increased.
  • The MOVR market (Moonriver) MFAM supply APR was decreased. The MOVR supply APR was increased.
  • The xcKSM market (Moonriver) MFAM supply APR was increased. The MOVR supply APR was increased.
  • The FRAX market (Moonriver) MFAM supply APR was decreased. The MOVR supply APR was increased.

Integration Updates

Forum post: Add wrsETH market to Moonwell on Base

Summary: A representative for Kelp DAO created a forum post one month ago with the intention of adding the DAO’s liquid restaking token (LRT), wrsETH, to the Moonwell markets on Base. Kelp DAO is a liquid restaking protocol built on top of EigenLayer; users can stake and restake on the platform to earn rewards and DeFi yields. On Monday, the poster created a revamped proposal to include Chainlink details, Optimism details, and other feedback. On Wednesday, the proposal went up for a Snapshot vote.

Forum post: Add EURC on Base

Summary: Two weeks ago, @0xMims presented a proposal to add Circle’s Euro-backed stablecoin, EURC, to Moonwell on Base. On Wednesday, the proposal went up for a Snapshot vote.

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

Don’t miss out on the final opportunity to win a share of the $2000 prize pool for this month’s governance campaign!