Weekly Governance Update: Week of March 4, 2024
The first week of March included regular risk analysis from @WardenFinance and @Gauntlet, an initiative to add support for a new lending market, and a proposed third-party partnership.
Here are the highlights:
Contributor Updates
Forum post: Review of Gauntlet’s BASE Recommendations 2024-02-28
Author: Warden Finance
Summary: On Monday, Warden Finance offered insights on Gauntlet’s BASE/Moonbeam/Moonriver Recommendations covered in the last weekly update. The risk analysis service provider agreed with Gauntlet’s proposed changes. However, the team further recommended reducing the supply-side rewards for DAI to help offset low onchain liquidity. They advocated capping the lending market supply at 50% of the onchain circulating supply; DAI’s current supply on Moonwell stands at 110%. rETH also had a low circulating supply, limiting the growth of that market. Lastly, the lending pools for the liquid staking tokens (LSTs) rETH and cbETH were reported to be underutilized in the previous months.
Outcome: Gauntlet executed nine onchain transactions using Cap Guardian to enact the changes laid out in the original recommendations post. On March 4, Gauntlet created two onchain proposals for Base and Moonbeam to implement the rest of the recommended changes that weren’t enacted through Cap Guardian. Voting closed on March 7. Both proposals passed with a “For” vote.
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Forum post: Gauntlet Base, Moonbeam, Moonriver Weekly Market Update
Author: Gauntlet
Summary: Gauntlet posted a weekly update on Saturday for the Moonwell markets covering the previous week.
- Base: Two assets had an average supply cap usage of over 75%: rETH (78.71%, down from 90.30% last week) and DAI (87.53%). The deployment had $49.44K and $9.75K in liquidations for mswtETH and mWETH, respectively.
- Moonbeam: The same four assets as last week had an average utilization of more than 75%: FRAX (106.38%), USDC.wh (81.86%), xcUSDT (81.51%), and xcUSDC (79.81%). Five assets experience liquidations: wBTC.wh ($9.89K), mDOT ($1.78K), mGLMR ($881.61), mFRAX ($136.74), and mUSDC.wh ($1.30).
- Moonriver: FRAX was the only asset that experienced an average utilization of >75%, coming in at 80.25%. $8.32K of mMOVR and $539.53 of mUSDC were liquidated.
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Delegate Updates
Forum Post: Add WBTC Market to Moonwell on Base
Author: coolhorsegirl
Summary: On Tuesday, delegate @coolhorsegirl proposed activating a WBTC (Wrapped Bitcoin) market on Moonwell. If approved, Moonwell would be the first lending market on Base to support the asset. The proposal first went up for a Snapshot vote, and it passed with 99.22% consensus. From here, the proposal will progress to an onchain MIP.
Outcome: An onchain proposal will be created but has yet to go live.
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Integration & Partnership Updates
Forum Post: Quantix Capital x Moonwell
Author: marcotd
Summary: New to Moonwell, @marcotd, an investments analyst at Quanitx Capital, proposed a relationship between Moonwell and the investment fund/asset management firm on Saturday. The firm provides comprehensive support for projects, including services such as marketing, market making, exchange listings, tokenomics, capital raising, and treasury management.
Read more about Quantix Capital’s token advisory here.
Outcome: TBD, community input is needed! Please see the forum post and add your comments and questions!
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Upcoming Events in Governance
Monthly Governance Call
First Thursday of April
Look for the next Monthly Governance Call in Discord on the first Thursday, April 4th.