Weekly Governance Recaps

Weekly Governance Update: Week of November 25th, 2024

One Snapshot proposal and two onchain proposals went up for a vote this week. Gauntlet was active in the forums, providing market updates, cap recommendations, and risk analysis for new markets.

Proposals

MIP-X07: Gauntlet’s Monthly Recommendations

Summary: Monday, Gauntlet submitted the first of two proposals which regularly make adjustments to several risk parameters across all Moonwell deployments. This first multichain proposal adjusted parameters on Base, Optimism, and Moonbeam. For the exact parameter adjustments, see our previous update here. The proposal was successful.

MIP-R29: Gauntlet’s Moonriver Recommendations

Summary: The second of the two Gauntlet monthly recommendation proposals was posted shortly after MIP-X07. This proposal only adjusted parameters on Moonriver. For the exact parameter adjustments, see our previous update here. The proposal was successful

MIP-B38: Renewal of Moonwell Flagship Vaults Incentives Program

Summary: Tuesday, B.Protocol and Block Analitica submitted a Snapshot proposal to renew the Moonwell Flagship Vaults incentives program. The proposal sought to extend and optimize the program for an additional 6-month period. The revised incentive program requested 18M WELL tokens, reduced from 50M. The Snapshot was successful and it will soon move to an onchain vote.

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: One asset had an average cap usage of over 75%: rETH (95.05% supply cap). The deployment had nine asset liquidations in the past week: mAERO ($172.83K), mcbBTC ($23.57K), mwstETH ($23.07K), mWETH ($7.59K), mUSDC ($3.38K), mrETH ($1.45K), mEURC ($1.21K), mcbETH ($529.97), and mDAI ($10.25).
  • Optimism: Four assets had an average utilization greater than 75%: USDC (90.49%), USDT (90.19%), DAI (89.05%), and WETH (87.73%). The deployment had five asset liquidations in the past week: mVELO ($7.23K), mUSDC ($272.56), mWETH ($22.47), mOP ($5.54), and mDAI ($0.23).
  • Moonbeam: No asset had an average utilization greater than 75%. The deployment had six asset liquidations in the past week: mxcUSDT ($35.42K), mGLMR ($14.03K), mUSDC.wh ($4.52K), mWBTC.wh ($2.76K), mFRAX ($1.07K), and mDOT ($266.81).
  • Moonriver: One asset had an average utilization greater than 75%: FRAX (84.46%). The deployment had three asset liquidations in the past week: mxcKSM ($14.31K), mMOVR ($1.83K), and mFRAX ($1.41K).

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

Forum post: Capturing OEV in the Moonwell Protocol

Author: elliot

Summary: Tuesday, Elliot from Solidity Labs created a forum discussion around a potential way to improve how liquidations occur on Moonwell, resulting in a more efficient capture of revenue from liquidation events. He noted the current state of MEV capture for the protocol - professional liquidators compete using bots to earn fees by liquidating risky underwater loans - before proposing the idea that Moonwell could introduce an “MEV tax,” charging liquidators for priority access to update price feeds and execute liquidations. Some of the benefits he discusses include additional revenue remaining within the protocol and maintaining the usage of Chainlink oracles. He recommends a phased approach, beginning with a single market before expanding.

Community & Integrations

Forum post: Add wUSDM Market to Moonwell on Base

Author: julianMP

Summary: After a successful Snapshot vote in mid-November, Gauntlet has posted their market risk analysis for wUSDM. The team recommended delaying the onboarding of wUSDM on Moonwell on Optimism until liquidity deepens and the distribution of liquidity providers becomes more diversified.

Forum post: Add pufETH Market to Moonwell on Base

Author: Puffer

Summary: After a successful Snapshot vote in mid-November, Gauntlet has posted their market risk analysis for pufETH. The team recommended delaying the onboarding of pufETH on Moonwell on Base until there’s deeper DEX liquidity.

Upcoming Events in Governance

Monthly Governance Call

The first Thursday of each month

Look for the next Monthly Governance Call in Discord this Thursday, December 5th.

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