Weekly Governance Update: Week of November 18th, 2024
One Snapshot and two onchain proposals were passed by the community this week. The Snapshot involved a potential integration of RedStone’s OEV technology, while the onchain proposals were the standard monthly reward speed adjustments.
Proposals
Additional revenue stream for Moonwell ecosystem via OEV implementation
Summary: This proposal sought to implement Oracle Extractable Value (OEV) technology built by RedStone, introducing a new revenue stream for the Moonwell DAO. The idea entailed Moonwell capturing the extra value generated during liquidations, redirecting it back into the protocol reserves instead of being lost to bots. The team plans on initially testing the rollout on the AERO market on Moonwell’s Base deployment. The Snapshot passed and an onchain proposal is expected to be posted in the future.
MIP-X06 Automated Liquidity Incentive Proposal
Summary: The first of two monthly reward speed proposals, MIP-X06 made changes to the following markets:
- Base:
- ETH: Decreased WELL Supply APR and Borrow APR
- cbETH: Decreased WELL Supply APR and Borrow APR
- USDC: Increased WELL Supply APR and decreased WELL Borrow APR
- wstETH: Decreased WELL Supply APR and Borrow APR
- rETH: Decreased WELL Supply APR and Borrow APR
- AERO: Decreased WELL Supply APR and Borrow APR
- weETH: Decreased WELL Supply APR and Borrow APR
- cbBTC: Increased WELL Supply APR and Borrow APR
- EURC: Decreased WELL Supply APR and Borrow APR
- wrsETH: Decreased WELL Supply APR and Borrow APR
- Optimism:
- USDC: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- USDT: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- DAI: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- ETH: Increased WELL Supply APR and Borrow APR; increased OP Supply APR and Borrow APR
- wstETH: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- cbETH: Decreased WELL Supply APR; decreased OP Supply APR
- rETH: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- OP: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- weETH: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- VELO: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- wrsETH: Decreased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
- Moonbeam:
- GLMR: Decreased WELL Supply APR and Borrow APR; increased GLMR Supply APR and Borrow APR
- DOT: Decreased WELL Supply APR and Borrow APR; increased GLMR Supply APR and Borrow APR
- FRAX: Decreased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR
- ETH.wh: Decreased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR
- USDC.wh: Decreased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR
- xcUSDT: Decreased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR
- xcUSDC: Increased WELL Supply APR and Borrow APR; increased GLMR Supply APR and Borrow APR
MIP-R28 Rebalancing of Moonriver Token Liquidity Incentives
Summary: The second monthly reward speed proposal made changes to the following markets:
- Moonriver:
- MOVR: No Supply-side or Borrow-side changes
- xcKSM: No Supply-side or Borrow-side changes
- FRAX: No Supply-side or Borrow-side changes
Contributor Updates
Forum post: Gauntlet Weekly Market Update
Author: Gauntlet
Summary: Gauntlet posted a weekly update on November 18th for the Moonwell markets covering the previous week.
- Base: Three assets had an average cap usage of over 75%: DAI (75.69% supply cap), USDbC (82.65% borrow cap), and rETH (86.83% borrow cap and 99.96% supply cap). The deployment had eight asset liquidations in the past week: mAERO ($401.17K), mWETH ($351.67K), mUSDC ($192.80K), mcbBTC ($48.24K), mEURC ($1.96K), mcbETH ($627.96), mwstETH ($402.35), and mDAI ($26.98).
- Optimism: Four assets had an average utilization greater than 75%: USDC (90.41%), USDT (90.11%), DAI (89.35%), and WETH (89.42%). The deployment had five asset liquidations in the past week: mVELO ($15.20K), mWETH ($5.94K), mrETH ($1.20K), mUSDC ($814.67), and mOP ($660.11).
- Moonbeam: No asset had an average utilization greater than 75%. The deployment had five asset liquidations in the past week: mGLMR ($10.57K), mETH.wh ($2.97K), mDOT ($1.38K), mWBTC.wh ($1.13K), and mFRAX ($4.93).
- Moonriver: One asset had an average utilization greater than 75%: FRAX (82.98%). The deployment had two asset liquidations in the past week: mxcKSM ($11.73K) and mMOVR ($30.00).
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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:
- weETH (Base) Supply Cap from 1400 to 2800 and Borrow Cap from 350 to 700
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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. rETH Reserve Factor was increased. IR parameters were recommended to be adjusted for USDC.
- Optimism: Supply Cap and Borrow Cap for WBTC were decreased. The Collateral Factor WBTC was decreased and its Reserve Factor was increased. IR parameters were recommended to be adjusted for USDC, USDT, DAI, wstETH, and cbETH.
- Moonbeam: Borrow Cap for WBTC.wh was decreased. Collateral Factors for USDC.wh, WETH.wh, and WBTC.wh were decreased. WBTC.wh Reserve Factor was increased.
- Moonriver: IR parameters were recommended to be adjusted for FRAX, xcKSM, and MOVR.
Community & Integrations
Forum post: MIP-B38: Renewal of Moonwell Flagship Vaults Incentives Program
Author: BlockAnalitica
Summary: Block Analitica proposed renewing the Moonwell Flagship Vaults incentives program. If successful, the upcoming proposal would extend and optimize the program for an additional 6-month period. The team noted the progress since launching on Base in July, adding that the Moonwell Flagship Vaults have emerged as the dominant market leader on Morpho’s Base deployment. The revised incentive program is requesting 18M WELL tokens, reduced from 50M.
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Forum post: Switch Moonwell Optimism’s Markets to using API3’s OEV Enabled Data Feeds
Author: dav3
Summary: Dave Connor from API3 posted a proposal for Moonwell to switch to API3’s data feeds on the Optimism deployment. The proposal outlines the benefits such as increased revenues for the protocol and the technical simplification of switching due to no code changes being required. OEV accrued will be distributed to the WETH core market on Optimism’s reserves using the addReserve function. The voting options presented include a “Yay” to proceed with the switch, or a “Nay” to uphold the current system with no changes.
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, December 5th.
November’s governance call ca be found on YouTube, and a recap is provided here.