Full Moon Update: 12/07/22

Hello, Cryptonauts!

Though December’s full moon is known as the “Cold Moon”, things are really heating up lately for Moonwell. In today’s update, we will cover the launch of brand new markets on Moonwell Artemis, the latest governance proposals, and an ongoing holiday event in the Moonwell Discord!

One month ago, MIP-7 was submitted to the Governance Forum for community discussion around the addition of new Wormhole-wrapped asset markets on Moonwell Artemis. Following weeks of deliberation, the proposal was recently submitted to the Moonwell Governance Portal for on-chain voting. The Moonwell community came out in record-breaking numbers to pass the proposal, with over 378 million votes being cast from 277 unique addresses!

Following this governance vote and the mandatory 24-hour Timelock, MIP-7 executed, creating new markets for USDC.wh, ETH.wh, and WBTC.wh on Moonwell Artemis. These markets launched with Gauntlet’s recommended risk parameter values, derived from their asset listing analysis. Gauntlet Network will continue to submit regular risk parameter update proposals that have the ability to adjust these initial values to optimize for risk and capital efficiency. In the aforementioned asset listing analysis, Gauntlet states that “once we see more market dynamics such as pool usage and market liquidity, and ensure that there are no outstanding issues, we expect to adjust these values”.

Gauntlet’s Recommended Initial Risk Parameters

Note that at the time of proposal creation, BUSD.wh was lacking a Chainlink price feed on Moonbeam and it was not included in MIP-7. Since that time, a price feed has been created for the asset and it can now be safely supported on Moonwell Artemis, though it will require the passage of an additional governance proposal to establish the market.

MIP-7 was followed shortly by the passage of another Moonwell Improvement Proposal, MIP-11. This governance proposal added WELL and Moonbeam Ignite liquidity incentives to the supply side of these new Wormhole-wrapped asset markets. In the MIP-11 proposal text, the author mentions that it “makes sense to withhold on adding incentives for borrowing while there remains low borrow caps on these markets. Otherwise, only the first users to borrow would reap the rewards.”

Gauntlet Network has submitted their latest risk parameter updates for Moonwell Apollo (MIP-12) and Moonwell Artemis (MIP-13) to the Governance Forum for community discussion and Governance Portal for on-chain voting.

Their latest parameter updates call for the addition of borrow caps to asset markets on both Moonwell Apollo and Moonwell Artemis. Borrow caps, which had yet to be applied to any Moonwell markets prior to the recent passage of MIP-7, signify the total amount that can be borrowed from a particular market at one time. Money market borrow caps are typically implemented to help protect protocols against price manipulation attacks and liquidity risk.

MIP-12: Proposed Recommendations
MIP-13: Proposed Recommendations

For the uninitiated, Gauntlet Network is a contributor to the Moonwell protocol. They use their advanced financial modeling platform to optimize capital efficiency and mitigate risk for the protocol. They regularly submit governance proposals to adjust asset risk parameters such as collateral factors, reserve factors, and borrow caps.

Gauntlet has also created custom Risk Dashboards for both Moonwell Apollo and Moonwell Artemis, that allow for the community to easily view key system metrics, market statistics, and recommended risk parameter calibrations.

To celebrate the holiday season and to add a little festive spirit to the Moonwell Discord, the “25 Days of Moonwell” event has kicked off! There are random drawings taking place every day through December 25th, with winners being able to claim video game download keys and other prizes!

If you haven’t already, consider joining the Discord server. Not only will you be able to take part in the 25 Days of Moonwell event, but it’s also the hub of the Moonwell community. The Moonwell Discord is the best place to receive protocol support, stay up to date on all things Moonwell, and hang out with your fellow Cryptonauts.

About Moonwell

Moonwell is an open lending and borrowing DeFi protocol on Moonbeam & Moonriver. Moonwell’s composable design can accommodate a full range of DeFi applications in the greater Polkadot and Kusama (DotSama) ecosystem.

Main website | Telegram | Discord | Twitter | Documentation | Gov Portal

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Moonwell

DeFi’s Liquidity Well built on top of Moonbeam and Moonriver