Weekly Governance Recaps

Weekly Governance Update: Week of October 21st, 2024

The fourth week of October included a proposal to add a voting requirement to claim Safety Module rewards, a pair of automated liquidity incentives proposals, and Gauntlet’s monthly recommendations.

Here are the highlights:

Delegate Rush Updates

Delegation Period: Make sure to delegate to the new applicants. The five prospective delegates need to reach 200K in WELL delegations to be onboarded as mid-tier delegates. See the comment on the original forum post here.

Contributor Updates

Forum post: Gauntlet Weekly Market Update

Author: Gauntlet

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

  • Base: Two assets had an average supply cap usage of over 75%: USDbC (93.87%) and rETH (99.93%). The deployment had $228,170 in liquidations across eight assets in the past week: mWETH ($79.11K), mcbBTC ($73.35K), mUSDC ($50.94K), mAERO ($22.83K), mEURC ($1.12K), mDAI ($805.08), mrETH ($13.45), and mwstETH ($1.78).
  • Optimism: Three assets had an average utilization greater than 75%: USDT (88.23%), USDC (89.88%), and DAI (88.16%). The deployment had $1,138 in liquidations across two assets in the past week: mVELO ($891.05) and mOP ($246.95).
  • Moonbeam: No asset had an average utilization greater than 75%. The deployment had $385.50 in liquidations across one asset in the past week: mGLMR.
  • Moonriver: One asset had an average utilization greater than 75%: FRAX (90.77%). No liquidations were reported.

Forum post: Increasing Governance Participation

Author: Luke

Summary: After last week’s discussion on preventing governance attacks began, MIP-X05 went up for an onchain vote on Wednesday. The proposal sought to accomplish two things:

• Reduce the Safety Module cooldown period from 10 days to 7 days on Base and Optimism
• Require voting at least once in the last 30 days to claim staking rewards

The proposal was successful.

Proposals: MIP-X04 and MIP-R27 - Automated Liquidity Incentives Proposals

Summary: This week, the monthly reward speed proposals for Base, Optimism, Moonbeam, and Moonriver were submitted. MIP-X04 covered Base, Optimism, and Moonbeam, while MIP-R27 addressed rewards on Moonriver. These proposals rebalance liquidity incentives in an effort to maintain healthy levels of rewards on the networks.

  • The USDbC market (Base) had no changes.
  • The ETH market (Base) WELL supply and borrow APR were increased.
  • The cbETH market (Base) WELL supply and borrow APR were decreased.
  • The DAI market (Base) had no changes.
  • 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 decreased.
  • The weETH market (Base) WELL supply and borrow APR were increased.
  • The cbBTC market (Base) WELL supply and borrow APR were increased.
  • The EURC market (Base) WELL supply and borrow APR were increased.
  • The wrsETH market (Base) WELL supply and borrow APR were increased.
  • The USDC market (Optimism) WELL supply and borrow APR were increased. The OP supply and borrow APR were increased.
  • The USDT market (Optimism) WELL supply and borrow APR were increased. The OP supply and borrow APR were increased.
  • The DAI market (Optimism) WELL supply and borrow APR were increased. The OP supply and borrow APR were increased.
  • The WBTC market (Optimism) had no changes.
  • The ETH market (Optimism) WELL supply and borrow APR were decreased. The OP supply and borrow APR were increased.
  • The wstETH market (Optimism) WELL supply and borrow APR were increased. The OP supply and borrow APR were increased.
  • The cbETH market (Optimism) WELL supply APR was decreased. The OP supply APR was decreased.
  • The rETH market (Optimism) WELL supply and borrow APR were decreased. The OP supply and borrow APR were decreased.
  • The OP market (Optimism) WELL supply and borrow APR were increased. The OP supply and borrow APR were increased.
  • The weETH market (Optimism) WELL supply and borrow APR were decreased. The OP supply and borrow APR were increased.
  • The VELO market (Optimism) WELL supply and borrow APR were increased. The OP supply and borrow APR were increased.
  • The wrsETH 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 increased.
  • The xcDOT market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR borrow APR was increased.
  • The FRAX market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR supply and borrow APR were increased.
  • The ETH.wh market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR supply and borrow APR were decreased.
  • The WBTC.wh market (Moonbeam) had no changes.
  • The USDC.wh market (Moonbeam) WELL supply and borrow APR were decreased. The GMLR borrow APR was 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 increased. The GMLR supply and borrow APR were increased.
  • The MOVR market (Moonriver) MFAM supply APR was decreased. The MOVR supply APR was decreased.
  • The xcKSM market (Moonriver) MFAM supply APR was increased. The MOVR supply APR was increased.
  • The FRAX market (Moonriver) had no changes.

The proposals were successful.

Forum post: Gauntlet - Cap Recommendations

Author: Gauntlet

Summary: Monday, Gauntlet announced they would use Cap Guardian to change four sets of caps:

  • wstETH (Base) Supply Cap from 9K to 14.4K
  • EURC (Base) Borrow Cap from 8M to 13M
  • weETH (Optimism) Supply Cap from 170 to 340 and Borrow Cap from 85 to 110
  • rETH (Optimism) Supply Cap from 85 to 170 and Borrow Cap form 350 to 520

For the rationale behind these changes, see the forum posts above.

Forum post: Gauntlet Base/Optimism/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 DAI and USDbC were decreased. The collateral Factors for USDbC and DAI were decreased while their Reserve Factors were increased. WETH Reserve Factor was decreased. IR parameters were recommended to be adjusted for DAI, cbBTC, WETH, and USDbC.
  • Optimism: Both Borrow and Supply Caps for WBTC were decreased. The Collateral Factors for WTH, cbETH, wstETH, and rETH were increased. The Reserve Factor for WBTC was increased while its Collateral Factor was decreased. IR parameters were recommended to be adjusted for WETH.
  • Moonbeam: Borrow Caps for xcUSDC and xcUSDT were increased. Collateral Factors for USDC.wh, WETH.wh, and WBTC.wh were decreased. WBTC.wh Reserve Factor was increased.
  • Moonriver: No changes were recommended.

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, November 7th.