Weekly Governance Recaps

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Weekly Governance Update: Week of January 13th, 2025

Two onchain proposals and one Snapshot went up for a vote this week.

Proposals

MIP-O12: Solidity Labs’ Oracle Extracted Value (OEV) Solution on ETH Core Market on Optimism
Summary: This proposal sought to implement Solidity Labs’ OEV Solution on the ETH Core Market on Optimism. The solution seeks to improve how liquidations occur on Moonwell, ensuring a more efficient capture of revenue from liquidation events. With this proposal, Moonwell would introduce an “MEV tax”, charging liquidators for priority access to update price feeds and execute liquidations. It is initially limited to the ETH Core Market on Optimism as a test. The proposal was successful.

Add VIRTUAL to Moonwell Core Market on Base
Summary: Wednesday, 0xMims’ previous discussion on adding a Core Market for the governance and utility token of Virtuals Protocol progressed to a Snapshot signal vote. The Snapshot was successful.

MIP-X11 Automated Liquidity Incentive Proposal
Summary: The regular monthly reward speed proposal went onchain on Wednesday. It made changes to the following markets:

  • Base:
    • ETH: Increased WELL Supply APR and Borrow APR
    • USDC: Increased WELL Supply APR
    • AERO: Decreased WELL Supply APR and Borrow APR
    • cbBTC: Decreased WELL Supply APR and Borrow APR
    • EURC: Increased WELL Supply APR and Borrow APR
    • WELL: Increased WELL Supply APR and Borrow APR; increased USDC Borrow APR
  • Optimism:
    • USDC: Increased 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: Increased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
    • ETH: Increased WELL Supply APR and Borrow APR; decreased OP Supply APR and Borrow APR
    • VELO: Increased WELL Borrow APR; decreased OP Borrow APR
  • Moonbeam:
    • GLMR: Decreased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR
    • DOT: Increased WELL Supply APR; increased GLMR Supply APR
    • FRAX: Decreased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR
    • ETH.wh: Decreased WELL Borrow APR; decreased GLMR Borrow APR
    • USDC.wh: Decreased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR
    • xcUSDT: Increased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR
    • xcUSDC: Increased WELL Supply APR and Borrow APR; decreased GLMR Supply APR and Borrow APR

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: Three assets had an average supply cap usage of over 75%: weETH (98.37%), rETH (79.64%), and wrsETH (91.82%). The deployment had eight asset liquidations in the past week: mAERO ($369.01K), mcbBTC ($185.97K), mWETH ($27.84K), mcbETH ($19.68K), mUSDC ($16.64K), mrETH ($1.78K), mwstETH ($11.06), and mDAI ($0.34).
  • Optimism: Four assets had an average utilization of over 75%: USDC (89.24%), USDT (89.71%), DAI (90.96%), and WETH (86.73%). The deployment had six asset liquidations in the past week: mVELO ($32.00K), mWETH ($12.43K), mOP ($1.25K), mwstETH ($68.84), mrETH ($0.88), and mweETH ($0.17).
  • Moonbeam: No assets had an average utilization of over 75%. The deployment had two asset liquidations in the past week: mGLMR ($82.13K) and mDOT ($1.67K).
  • Moonriver: One asset had an average utilization of over 75%: FRAX (88.51%). The deployment had one asset liquidation in the past week: mMOVR ($975.72).

…

Forum post: Gauntlet Monthly Recommendations
Author: Gauntlet
Summary: Wednesday, Gauntlet offered their monthly recommendations on risk parameters across the four Moonwell deployments.

  • Base: Supply caps for wrsETH and rETH were increased. The reserve factor for DAI was increased to 100%. IR parameters were recommended to be adjusted for USDC and cbBTC.
  • Optimism: Supply caps for weETH and VELO were increased. Borrow cap for WEETH was increased. Collateral factor for weETH was increased while the collateral factor for WBTC was decreased. IR parameters were recommended to be adjusted for USDC, USDT, and DAI.
  • Moonbeam: Collateral factors for USDC.wh, WETH.wh, and WBTC.wh were decreased.
  • Moonriver: No changes were recommended.

…

Forum post: [Gauntlet] - Various Asset Recommendations
Author: Gauntlet
Summary: Following a successful Snapshot vote last month, Gauntlet added their recommendations for an LBTC Core Market on Base. Included in the post are recommended supply/borrow caps, collateral factor, IR curve parameters, and more. Around the same time, the team published similar recommendations for Threshold Network’s tBTC. This comes after a successful Snapshot earlier this month. Finally, Gauntlet added their recommendations for a USDS market on Base following a Snapshot from Super Delegate 0xMims.

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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 (Optimism) Supply Cap from 540 to 1100

Upcoming Events in Governance

Monthly Governance Call

Look for the next Monthly Governance Call in Discord on the first Thursday of the month, February 6th.

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