Weekly Governance Update: Week of October 13th, 2025
One onchain proposal went up for a vote this week.
Proposals
MIP-B50
Summary: On Tuesday, MIP-B50 was submitted for onchain voting. Co-authored by Moonwell delegates Chidi and Joel, along with Lunar Labs, this proposal sought to create Merkle incentive campaigns for Moonwell’s MetaMorpho vaults (USDC, WETH, EURC, and cbBTC) and introduce a new incentive campaign for stkWELL holders to encourage participation in the safety module.
Delegate Updates
Forum post: Moonwell Q3 2025 Report
Author: Jor-El
Summary: Moonwell delegate Jor-El posted to the forums on Monday an analysis of protocol growth, asset diversification, revenue dynamics, and governance statistics.
Contributor Updates
Forum post: [Anthias Labs] Weekly Market Updates
Author: Anthias
Summary: Anthias posted a weekly update on Friday for the Moonwell markets covering the previous week.
- Base: Some notable week-over-week changes include a decrease in WETH supply and borrows (25% and 35%, respectively), an increase in cbBTC supply and borrows (10% and 37%), and an increase in WELL supply (+59%). There was ~$12.69M in liquidations across 1151 events.
- OP Mainnet: Notable changes on OP Mainnet include an increase in WETH supply and borrows, and decreases in OP and weETH supply. There was ~$401K in liquidations across 212 events.
- Moonbeam: Moonbeam saw reductions in the supply and borrows of xcUSDC and the borrows of USDT. There was ~$71.5K in liquidations across 644 events.
- Moonriver: A decrease in FRAX borrows was the most significant change week-over-week. There was ~$11K in liquidations across 74 events.
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Forum post: [Anthias Labs] Report on the Events of October 10th, 2025
Author: Anthias
Summary: On Friday, Anthias posted a report detailing the macro shock that took place on October 10th (U.S. announcement of 100% China tariffs), which triggered a market-wide crash (BTC -14.6%, ETH -21.3%) and cascading liquidations exacerbated by Binance Unified Account valuation issues (~$19B liquidations). Moonwell saw ~$12M liquidations across chains; on Base, an attacker used flash loans to exploit large oracle/DEX price gaps in VIRTUAL/MORPHO/AERO, leading to ~$1.7M in bad debt while extracting ~267 ETH. Liquidations largely failed as the 7% bonus couldn’t overcome 20-36% price divergences. Mitigations employed included immediately reducing/pausing borrow caps for VIRTUAL/MORPHO/AERO via cap guardian; Base reserves (~$2.7M) can cover the ~$1.7M shortfall (AERO covered by market reserves; VIRTUAL/MORPHO need broader reserves). Moonbeam has a few under-water USDC.wh borrowers pending liquidation due to limited USDC.wh liquidity/bridging. DAO guidance requested on covering bad debt.
Upcoming Events in Governance
Monthly Governance Call
Look for the next Monthly Governance Call on X on the last Thursday of the month, October 30th.