Weekly Governance Update: Week of March 18, 2024
The third week of March included regular risk analysis from Moonwell contributors, a follow-up proposal to the Nomad Recovery, and a major milestone for cross-chain governance.
Here are the highlights:
Contributor Updates
Forum post: MIP-M21: Upgrade Wormhole Bridge Adapter on Moonbeam
Author: elliot
Summary: In the last weekly update, Elliot from Solidity Labs proposed MIP-M21 to upgrade the Wormhole Bridge Adapter on Moonbeam, an important step towards enabling voting and staking from Base. On Monday, the on-chain proposal went live.
Outcome: MIP-M21 passed its on-chain vote with 97.7% consensus.
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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: Three assets had an average supply cap usage of over 75%: DAI (75.10%, down from 77.52% last week), WETH (76.67%), and rETH (78.55%). The deployment had two asset liquidations in the past week: $1.23K mwstETH and $1.01K mWETH.
- Moonbeam: Three assets had an average utilization of more than 75%: FRAX (106.39%), USDC.wh (82.30%), and xcUSDT (79.44%). Four assets experienced liquidations: mDOT ($4.09K), mGLMR ($16.34K), mFRAX ($55.65), and mxcUSDT($126.89).
- Moonriver: FRAX was, again, the only asset that experienced an average utilization of >75%, coming in at 87.22%. $6.02K of mMOVR and $53.38 of mxcKSM were liquidated.
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Forum post: Guantlet FRAX Borrow Cap Guardian - Moonriver
Author: Gauntlet
Summary: Gauntlet announced their use of Cap Guardian to reduce borrow caps for FRAX on the Moonriver network. The previous borrow cap was 500,000; the new recommended cap is 270,000 due to high utilization (61%) in the FRAX pool. The lowering of the cap is meant to prevent further borrowing. The Moonscan transaction for this change can be found here.
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Forum post: MIP-M23 and MIP-M24: Multichain Governor and WELL Migration
Author: elliot
Summary: It was previously reported in the last weekly update that if MIP-M21 (the first proposal enabling multichain governance) passed, two new proposals would be created. MIP-M23 would transfer power to the new governor. From a high level, the proposal seeks to move from Compound’s Governor Alpha smart contract to one that enables a seamless, cross-chain user experience. If passed, it would enable WELL token-holders on Base to participate in governance. The new multichain governor was developed by Moonwell contributor Solidity Labs. Going one step beyond the transfer of power from one governor to the other, MIP-M24 would accept ownership of the contracts and finalize the new governor’s abilities. For more information on implementation parameters, security, and xWELL details, check out the forum post above.
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Delegate Updates
Proposal: MIP-M22 - Strategic Reallocation of Collateral for FRAX Market Stability
Author: Curly
Summary: In Boardroom’s update from the last week of February, Elliot from Solidity Labs gave an update on the progress of the Nomad Recovery. On Wednesday, delegate @Curly submitted an on-chain proposal that aims to enhance FRAX liquidity on Moonbeam. It’s important to note that MIP-M22 won’t be the end of the Nomad recovery. Upcoming tasks include Solidity Labs going through “a KYC/Redemption process, swapping redeemed assets for FRAX, bridging the assets back to Moonbeam via FRAX Ferry, and finally adding the funds to the protocol reserves.”
Outcome: MIP-M22 passed its on-chain vote with 100% consensus.
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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.