Weekly Governance Update: Week of February 26, 2024
The fourth week of February included regular cap recommendations, updates to the Nomad Recovery efforts thread, and a third-party integration update. Here are the highlights:
Contributor Updates
Forum post: Gauntlet Guardian Borrow Cap Recommendations for xcUSDC
Author: Gauntlet
Summary: With Gauntlet’s ability to make cap adjustments quickly through Cap Guardian, avoiding the need for governance proposals, the risk service provider announced in the forum post above that the borrow cap for xcUSDC would be set at 400,000. The borrow cap is meant to accommodate future growth for the asset on Moonwell, as the circulating supply has increased to ~$182K xcUSDC. You can review the transaction on Moonscan here.
…
Forum Post: Redemption and Reallocation of Nomad Collateral and Protocol Reserves for FRAX Market Enhancement
Author: Elliot
Summary: As an update to the progress made on the Nomad Recovery since the last weekly update, Elliot informed the community that a few additional tests were added to the pull requests on GitHub. Two reviews of the code were conducted; no issues were found. Lunar Labs then began awaiting quotes from auditing firms for a contest that will be kicked off in the first week of March. On Thursday, Elliot announced that Codehawks was selected to be the audit competition platform. The competition will last 7 days after beginning on March 4th.
…
Forum post: Gauntlet BASE/Moonbeam/Moonriver Recommendations
Author: Gauntlet
Summary: Gauntlet conducted their regular updates to the three Moonwell deployment networks.
-
Base: Gauntlet recommended 12 risk parameter changes, including increasing reserve factors for wstETH, rETH, cbETH, and DAI and decreasing the DAI supply and borrow cap. The deployment was also recommended to change wETH’s and DAI’s IR curve. The combination of these actions is meant to manage concentration risk for DAI, improve overall capital efficiency for the protocol, and increase protocol reserves by raising the reserve factors for the Ethereum-based LSTs.
-
Moonbeam: 6 risk parameters (reserve factors for USDC.wh and WGLMR plus collateral factors for xcUSDC, USDC.wh, xcDOT, and WGLMR) were recommended for adjustments. The IR curve for USDc.wh was also proposed to be updated.
-
Moonriver: One risk parameter was mentioned for adjustment: Frax borrow cap. Gauntlet advised against making adjustments to any IR curves for this week.
…
Forum post: Gauntlet Base, Moonbeam, Moonriver Weekly Market Update 2024-02-23 through 2024-02-29
Author: Gauntlet
Summary: In addition to the weekly recommendations, on Saturday, Gauntlet posted a weekly update for the Moonwell markets covering the previous week.
-
Base: One asset had an average supply cap usage of over 75%: rETH (90.30%). The deployment had no liquidations.
-
Moonbeam: Four assets had an average utilization of more than 75%: FRAX (106.37%), USDC.wh (80.56%), xcUSDT (80.92%), and xcUSDC (80.30%). There was $3.04K of mUSDC.wh and $132.21 of mGLMR liquidated.
-
Moonriver: One asset experienced an average utilization of 76.42% - FRAX. $1.23K of mMOVR was liquidated.
Integration Updates
Forum Post: Migrating the Apollo Vault to Aera V2
Author: Aera
Summary: In the last weekly update, it was highlighted that Aera’s snapshot to migrate the existing Apollo vault from Aera V1 to V2 had passed with a “Yae, upgrade with Aave USDC” outcome. On March 1, Aera updated the community that the vault was live. As data begins to populate for the new vault, the Moonwell community can track its progress here.
Upcoming Events in Governance
Monthly Governance Call
Make sure to look out for the next Monthly Governance Call this week on Thursday, March 7th, 2024 hosted in Discord.