Weekly Governance Update: Week of October 28th, 2024
This last week included six proposals passed and/or executed. October saw an 87.5% increase in voter turnout compared to the previous month. Check out our full governance report for October here.
Here are last week’s highlights:
Delegate Updates
Delegate Rush Delegation Period: Reminder that the deadline to delegate to applicants is November 9th. The five prospective delegates need to reach 200K in WELL delegations to be onboarded as mid-tier delegates.
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Forum post: Further Formalizing Governance Procedures
Author: 0xMims
Summary: This proposal suggests that Moonwell formalize its voting schedule to add structure amid increased DAO activity and new delegates. By adopting predictable proposal start dates—similar to Arbitrum DAO’s weekly cycle—it would aid participants and enhance governance procedures.
Proposals
MIP-B36: Enabling Public Allocator Functionality for the Moonwell Flagship EURC Vault
Summary: This proposal seeks approval to activate the Public Allocator function for the Moonwell Flagship EURC Vault. This enhancement will authorize a designated Public Allocator to efficiently manage the vault’s liquidity, ensuring borrowers have improved access to funds by reallocating assets as necessary. The Public Allocator, a smart contract designed to optimize liquidity across markets, will redistribute liquidity in real-time, minimize fragmentation, and enhance borrower accessibility. Nearly 100% of voters supported this proposal, which will be executed in the coming days.
MIP-B35: Create USDC Reward Stream on cbBTC Market and Assign Gauntlet as Emissions Admin
Summary: This proposal seeks to introduce USDC incentives on Moonwell’s cbBTC market on Base, with the assignment of Gauntlet as the Emissions Admin. This role allows Gauntlet to dynamically manage USDC rewards on the cbBTC market without additional governance proposals. An initial four-week reward period will be established with the transfer of 80,000 USDC to the MultiRewardDistributor contract, with specific logistics, such as creating the reward stream and setting supply reward speeds, to be executed. Additionally, the reward stream’s end time has been set for December 3, 2024, aiming to boost liquidity and usage while leveraging Gauntlet’s expertise in optimizing incentive distribution. Nearly 100% of voters supported this proposal, which will be executed in the coming days.
MIP-M41: Reduce Safety Module Cooldown Period to 7 Days on Moonbeam
Summary: This proposal aims to shorten the cooldown period for the Safety Module on Moonbeam from the current 10 days to 7 days, aligning it with recent modifications made on Base and Optimism networks. This adjustment provides consistency across all networks, offering WELL stakers on Moonbeam the same cooldown period as those on Base and Optimism. The proposal was executed on November 1st.
MIP-M40: Gauntlet’s Moonbeam Recommendations
Summary: The proposal suggests adjustments to six key risk parameters. The recommended changes include:
- increasing the borrow cap for xcUSDC from 230,000 to 750,000 and for xcUSDT from 400,000 to 750,000
- reducing collateral factors for:
- USDC.wh from 50% to 45%,
- WETH.wh from 43% to 41%
- WBTC.wh from 25% to 20%
- increasing the reserve factor for WBTC.wh from 40% to 60%
The proposal was executed on November 1st.
MIP-O11: Gauntlet’s Optimism Recommendations
Summary: The proposal outlines adjustments to eight key risk parameters to enhance financial dynamics. It recommends increasing collateral factors for WETH, cbETH, wstETH, and rETH, while suggesting significant changes for WBTC, including increased reserve factors and reduced collateral, supply, and borrowing caps. Additionally, proposed modifications to WETH interest rate parameters include a higher kink and jump multiplier to optimize lending efficiency. The proposal was executed on November 1st.
MIP-B34: Gauntlet’s Base Recommendations
Summary: This proposal recommends adjustments to nine risk parameters related to USDbC, DAI, and WETH. Key changes include decreasing the collateral factor for USDbC from 78% to 76%, updating the supply cap, borrow cap, and reserve factor for both USDbC and DAI, and modifying the WETH reserve factor. Additionally, the proposal outlines interest rate parameter adjustments for these assets, such as altering the kink and multiplier values to optimize performance. The proposal was executed on November 1st.
Contributor Updates
Forum post: Gauntlet Weekly Market Update
Author: Gauntlet
Summary: Gauntlet posted a weekly update on October 28th for the Moonwell markets covering the previous week.
- Base: Three assets had an average supply cap usage of over 75%: USDbC (91.40%), rETH (100%), and weETH (77.09%). The deployment had $129,931 in liquidations across five assets in the past week: mAERO ($117.63K), mWETH ($9.43K), mUSDC ($1.64K), mcbETH ($111.08), and mwstETH ($1.12k).
- Optimism: Three assets had an average utilization greater than 75%: USDT (89.75%), USDC (89.85%), and DAI (87.99%). The deployment had $118,743 in liquidations of three assets in the past week: mVELO ($114.23K), mWETH ($4.47K), and mUSDC ($43.84).
- Moonbeam: No asset had an average utilization greater than 75%. The deployment had $7,563 in liquidations across three assets in the past week: mGLMR ($7.32K), mDOT ($238.22), and mUSDC.wh ($5.57).
- Moonriver: One asset had an average utilization greater than 75%: FRAX (87.17%). No liquidations were reported.
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Forum post: Gauntlet - Cap Recommendations
Author: Gauntlet
Summary: Gauntlet announced they would use Cap Guardian to change caps throughout the week:
- OP (Optimism) Supply Cap from 1.4M to 2.8M
- USDC (Optimism) Supply Cap from 18.2M to 36M and Borrow Cap from 17M to 34M
- wstETH (Base) Borrow Cap from 2.4K to 2.4K
- cbBTC (Base) Borrow Cap from 160 to 320
- cbETH (Base) Borrow Cap from 3.2K to 6.4K
- WETH (Optimism) Supply Cap from 7.5 to 10K and Borrow Cap from 4K to 9.5K
- EURC (Base) Supply Cap from 13.7M to 21.9M and Borrow Cap from 13M to 21M
Community Updates
Forum post: Add Wrapped Super OETH Market to Moonwell on Base
Summary: Early in October @pete posted this proposal, and @micah has followed up to clarify that, respecting the community’s vote, the team will not pursue a Super OETH market on Moonwell at this time. They remain open to future collaboration as the Base ecosystem evolves.
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Forum post: New Product Idea - Auctioned Borrowing
Author: bluebullet
Summary: The proposed idea involves a lending pool where 10 participants contribute to a $1,000 fund. Each month, an auction determines who receives the funds based on the lowest bid, with the winner repaying in installments and providing collateral. The claim is that the system benefits all participants by meeting diverse financial needs within a collateral-backed lending platform.
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.