Weekly Governance Update: Week of December 2nd, 2024
No onchain nor Snapshot proposals were created this week. Super Delegate 0xMims created a forum proposal, Gauntlet offered their regular risk analysis, and the debate surrounding OEV continued following an in-depth discussion on Thursday’s governance call.
Delegate Updates
Forum post: WELL Asset Listing
Author: 0xMims
Summary: Thursday, Super Delegate 0xMims created a forum proposal to add WELL Core Markets to the protocol. A few of the factors that preceded this effort included the token’s liquidity on Aerodrome, its circulating market cap, and the Chainlink price feed for WELL on Base going live. 0xMims followed the Asset Listing Framework, including information on asset decentralization, risk, oracle assessment, etc. The proposal is expected to move to a Snapshot vote shortly.
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 (80.45% supply cap). The deployment had ten asset liquidations in the past week: mcbBTC ($20.99K), mUSDC ($15.79K), mAERO ($9.35K), mDAI ($5.23K), mWETH ($3.46K), mwstETH ($1.00K), mweETH ($647.18), mEURC ($241.21), mcbETH ($152.64), and mrETH ($129.91).
- Optimism: Four assets had an average utilization greater than 75%: USDC (90.84%), USDT (90.57%), DAI (90.10%), and WETH (87.73%). The deployment had five asset liquidations in the past week: mUSDC ($16.07K), mUSDT ($2.11K), mrETH ($330.46), mVELO ($50.80), and mWETH ($12.99).
- Moonbeam: No asset had an average utilization greater than 75%. The deployment had five asset liquidations in the past week: mUSDC.wh ($12.97K), mGLMR ($7.08K), mETH.wh ($1.55K), mWBTC.wh ($1.23K), and mDOT ($23.01).
- Moonriver: One asset had an average utilization greater than 75%: FRAX (89.25%). No liquidations were reported.
…
Forum post: Gauntlet - Cap Recommendations
Author: Gauntlet
Summary: Gauntlet announced they would use Cap Guardian to change caps throughout the week:
- cbETH (Optimism) Supply Cap from 2 to 10
Community & Integrations
Forum post: Proposal: Introduction of a Fee-Sharing Mechanism for WELL Holders
Author: gopack
Summary: First-time poster gopack created a forum discussion early in the week, which was centered around activating a fee-sharing mechanism for WELL. Gopack argues that distributing a portion of the protocol’s fees to tokenholders would incentivize long-term holding and strengthen community alignment with the protocol’s growth.
…
Forum Discussion: Continuing the Great OEV Debate
Summary: Last week, 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. The proposal entailed introducing an “MEV tax,” charging liquidators for priority access to update price feeds and execute liquidations. The system would rely on existing Chainlink oracles. In the recent replies, Jacob from Fastlane expressed an alternative viewpoint on the MEV tax system and argued in favor of RedStone’s proposed solution.
API3’s proposal was also further discussed this week. In the most recent reply, Dave addressed concerns which included possible added risks of bad debt from data feed delays, onboarding hurdles for liquidators, and perceived poor capital efficiency for liquidators. He provides detailed responses to each, arguing that a 30-second delay is inconsequential in historical data, that OEV auctions can foster secondary markets for liquidation opportunities similar to Arbitrum’s Timeboost, and that flashloans are possible for paying winning bids with API3. Dave also mentions that there’s a possibility of tweaking the locking collateral amount to optimize performance and searcher quality of life.
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, January 2nd.