Weekly Governance Recaps

Weekly Governance Update: Week of February 19, 2024

The third week of February included regular contributor posts, updates on the Nomad recovery efforts, and the passing of a proposal related to a third-party DeFi protocol. Here are the highlights:

Contributor Updates

Forum post: [Gauntlet] Base, Moonbeam, and Moonriver Weekly Market Update

Author: Gauntlet

Summary: Beginning with Base, Gauntlet highlights the assets with an average supply/borrow cap usage over 75%. This week, DAI had an average borrow cap usage of 75.69% and an average supply cap usage of 81.83%. rETH had an average supply cap usage of 88.30%. Liquidated assets included mcbETH and mWETH, at $5.36K and $1.16K, respectively. Next, on Moonbeam, three assets had an average utilization above 75%: FRAX, USDC.wh, and xcUSDT (106.37%, 80.60%, and 80.58%, respectively). Liquidations included $10.28K of mGLMR, $3.88K of mDOT, and $143.24 of mFRAX. Last, Moonbeam had no assets with an average utilization of over 75% and had no liquidations.

Forum post: Rebalancing of Base Liquidity Incentives

Author: Warden Finance

Summary: To help avoid bad debt resulting from critically low DAI circulating supply, Warden Finance recommended the lending market supply to be capped at 50% of the on-chain circulating supply. Other topics discussed included the total supply for the rETH lending market standing at 55% of the circulating supply and rETH and cbETH being underutilized. Changes applied to mitigate these issues included a substantial decrease in DAI rewards to help reduce supply and borrow activity and the shifting of cbETH rewards towards WETH and USDC.

Forum Post: Moonwell Proxy Report - Feb 2024

Author: Boardroom

Summary: As a part of Boardroom’s support for Moonwell, the governance data service provider published a bi-annual “Proxy Report.” The document is intended to capture a 360-degree view of Moonwell DAO Governance. The report covers insights into historical voting patterns, community & delegate survey results, and short- and long-term initiatives to create change for the DAO.

Forum Post: Redemption and Reallocation of Nomad Collateral and Protocol Reserves for FRAX Market Enhancement

Author: Elliot

Summary: Originally posted on January 3, 2024, this forum post contains an important update for the Moonwell protocol. Elliot, a contributor to Moonwell through Solidity Labs, gave the community an update on the progress of the Nomad Recovery. He highlighted the time delay due to the Nomad KYC process and mentioned that the integration has been tested to ensure that the protocol continues functioning as intended post-upgrade. Essentially, the technical details surrounding the Nomad Recovery are still in progress and the community will stay updated throughout the process. On Wednesday, Elliot raised potential mitigation to the issue of bridging Nomad assets from Moonbeam back to Ethereum mainnet: a trusted community member could un-bridge assets using an EOA, redeem the Nomad assets on mainnet for their corresponding underlying tokens, and then send the underlying to the multisig. The multisig on mainnet would then swap all assets into FRAX, and then use Frax Ferry to move assets from Ethereum mainnet back to Moonbeam. Once the assets are back on Moonbeam, they will repay the FRAX bad debt.

He recommended that the community vote on who this community member should be, and he nominated himself for this role. Others who meet certain security criteria were encouraged to nominate themselves as well.

Integration Updates

Forum Post: Migrating the Apollo Vault to Aera V2

Author: Aera

Summary: This discussion went live on February 14 and was included in our last weekly update. Aera Finance sought to migrate the existing Apollo Aera vault from Aera V1 to Aera V2. 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 proposal included the option to leverage Aave for generating a yield on the USDC holdings in the vault; the three options for voting included: “Yae with Aave USDC,” “Yae w/o Aave USDC,” and “Nae don’t upgrade to Aera V2.”

This week, on February 21, the proposal went up for a Snapshot vote.

Outcome: The Snapshot ended on February 24. A quorum was met, with a 100% consensus “Yae, upgrade with Aave USDC” vote.

Upcoming Events in Governance


EthDenver is this week! If you’re showing up at EthDenver, tag @moonwellgov on Twitter/X. Saw a great talk or went to an inspiring meetup? Post a recap and if it’s educational for the Moonwell community, we’ll repost it!

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.