New Moon Update: April 2023

Moonwell
6 min readMay 1, 2023

Hello, Moonwell Community!

Welcome to the April New Moon Update! We are thrilled to share the latest developments and progress made within our community. This edition covers several topics, including a proposal to activate Moonwell on Base, key takeaways from the April Community Call, revamped risk dashboards from Gauntlet Network, and the latest Governance updates. Let’s embark on this exciting journey and explore the latest happenings within the ever-evolving Moonwell ecosystem.

Proposal to Activate Moonwell on Base Mainnet Successfully Passed! 🔵

Coinbase’s announcement of their Ethereum L2 solution, Base, captivated the crypto sphere in late February. Built on Optimism’s OP Stack, Base combines cutting-edge technology with unparalleled internal expertise, positioning itself to fulfill Coinbase’s ambitious “Secret Master Plan” of bringing 1 billion people onchain. If you’re interested in learning more about Base, check out Luke Youngblood’s interview with Andrew Flockhart from the Base team below.

This month, Moonwell community member and delegate Coolhorsegirl proposed the activation of the Moonwell protocol on Base Mainnet through MIP-39. The proposal highlights the unique opportunity to connect Moonbeam and the greater Polkadot ecosystem with Ethereum, leveraging the shared values between Coinbase and Moonwell. The Moonwell community signaled their strong support for activating the protocol on Base, with 366 members participating in the vote, resulting in near-unanimous approval.

Gauntlet Network’s Moonwell Risk Dashboards Have Been Revamped 📊

Gauntlet Network, a longstanding contributor to Moonwell, has unveiled their newly redesigned risk dashboards. The dashboards include key improvements and new features that provide greater transparency and insight into Gauntlet Network’s financial modeling and economic simulation techniques. The improvements consist of an aggregate view of risk, borrowing power as a measure of capital efficiency, centralized parameter recommendations, new market health pages, liquidation curves, and improved navigation. Upcoming features will include cap usage graphs, liquidity graphs, and updated handling of deprecated and frozen assets. This update enables the community to have a more comprehensive and accessible understanding of the risks associated with the Moonwell protocol. To get a more detailed overview of the dashboards and to share your favorite features or suggest additional improvements with Gauntlet Network, go to the Governance Forum.

Moonwell Community Call: April 2023 ☎️

This month, Moonwell’s guest contributor was Gokberk Gulgun from Halborn, who joined for an insightful discussion regarding blockchain and DeFi security. The discussion included an analysis of the recent Hundred Finance exploit and the temporary mint (supply) operations pause on Moonwell. Additionally, Moonwell delegate Coolhorsegirl provided the latest governance updates and Majin offered an opportunity for the community to have their questions answered in the Community Q&A. If you missed the call, you can catch up by watching the replay on YouTube or through the Twitter post embedded below.

Moonwell Apollo Governance Quorum Model Updated 🗳️

MIP-46 has approved the update to the governance quorum model for Moonwell Apollo. The previous dynamic “floating” model resulted in an ever-increasing, high quorum, which led to the defeat of two risk parameter proposals, despite overwhelming support. The new static quorum, set at 40 million MFAM, should facilitate the passage of essential proposals without compromising the security and continued growth of the protocol. This update is in alignment with Moonwell Artemis Governance and other DAOs, enabling contributors like Gauntlet Network to manage risk more efficiently.

You can find all governance parameters, including quorum, in the Moonwell Goverance Docs.

MGP-2: Warden Finance Risk & Tooling Grant Proposal Approved 🗳️

The Moonwell community has approved Warden Finance’s Risk & Tooling Grant Proposal (MGP-2) with overwhelming support, garnering 91% of the votes in the Snapshot signal vote and 89.75% of the votes in the onchain vote. Following a 24-hour timelock, the grant funding was transferred to Warden Finance.

This grant will enable Warden Finance to integrate Moonwell into their risk analytics dashboard, offering the Moonwell community access to view all accounts, transaction history, liquidations, and the ability to run simulations to measure the impact of market conditions and governance parameter changes. In addition, Warden Finance will suggest their own risk parameter recommendations, including collateral factors, interest rate models, supply/borrow caps, as well as review those from other contributors. They will also assist in onboarding the Moonwell protocol on Base Mainnet, which includes providing initial asset and parameter recommendations.

Hundred Finance Exploit: Moonwell Pause Guardians Temporarily Disable Supply ⏯️

Out of an abundance of caution following the exploit of Hundred Finance, a Compound fork on Optimism, the Moonwell Pause Guardians temporarily halted mint (supply) operations across all Moonwell markets. During this time, borrowing, repaying loans, and withdrawing remained functional.

After conducting a thorough investigation, Halborn Security confirmed that Moonwell markets were not affected by the exploit and that mint operations could be safely re-enabled. To do so, Moonwell Improvement Proposals (MIPs) were required for both Moonwell Artemis and Apollo.

Another contributor to Moonwell, Gauntlet Network, conducted their own analysis and determined that the protocol was not at risk from the exploit. Subsequently, Gauntlet Network proposed to unpause supplying on all markets as part of their bi-weekly parameter recommendation proposals. The only asset excluded from the unpause was BTC.multi on Moonwell Apollo due to its low supply balance, small annualized revenue, and high slippage on Moonriver. For more information on Gauntlet Network’s recommendations, please refer to MIP-44 and MIP-45.

Gauntlet Network’s Risk Parameter Updates 🗳️

In April, Gauntlet Network proposed several updates to risk parameters through MIP-40, MIP-41, MIP-44, and MIP-45 to manage protocol risk and improve capital efficiency by adjusting market parameters, such as collateral factors and borrowing caps.

Both MIP-40 and MIP-41 proposed new interest rate curves for Moonwell markets to minimize the risk of 100% utilization in a pool (market) and maximize the protocol’s reserve growth. These interest rate curves comprise two versions — one for stablecoins and one for non-stablecoin (volatile) assets. For stablecoins, the changes include setting the base to 0.0 from 0.02, no change in kink (0.8), a multiplier decrease from 0.1 to 0.05, and a jump multiplier increase from 1.09 to 2.5. For non-stablecoins, the changes include setting the base to 0.0 from 0.02, a reduction in kink from 0.8 to 0.6, an increase in the multiplier from 0.1 to 0.15, and an increase in the jump multiplier from 1.09 to 3.0.

MIP-40 failed to reach quorum, making it the second Moonwell Apollo proposal to do so. Despite receiving majority support from voters, the proposal did not meet the minimum voting threshold of approximately 55 million total votes. The risk parameter recommendations and interest rate curve updates from MIP-40 were carried over to the successful MIP-44.

MIP-41 Risk Parameter Updates:
Collateral Factor
- Decrease the collateral factor of FRAX from 60.0% to 59.5%%
- Decrease the collateral factor of BUSD.wh from 5.0% to 0.0%*
- Increase the collateral factor of USDC.wh from 60.0% to 62.0%
- Increase the collateral factor of xcUSDT from 30.0% to 40.0%

Borrow Cap
- Decrease the borrow cap of FRAX from 6,398,000 to 5,000,000
- Increase the borrow cap of USDC.wh from 1,000,000 to 1,500,000
- Increase the borrow cap of xcUSDT from 500,000 to 1,000,000

MIP-44 Risk Parameter Updates:
Collateral Factor
- Decrease the collateral factor of FRAX from 59.5% to 58.0%

Borrow Cap
- Decrease the borrow cap of FRAX from 3,000,000 to 1,000,000
- Decrease the borrow cap of USDT.multi from 2,482,000 to 600,000

MIP-45 Risk Parameter Updates:
Collateral Factor
- Decrease xcDOT collateral factor from 64.0% to 63.0%
- Increase xcUSDT collateral factor from 40.0% to 50.0%
Borrow Cap
- Increase USDC.wh borrow cap from 1,500,000 to 2,100,000
- Increase USDT borrow cap from 1,000,000 to 1,200,000

MIP-42 and MIP-43 Have Passed! 🗳️

After being submitted to the Governance Forum for community discussion and Governance Portal for on-chain voting, MIP-42 and MIP-43 have successfully passed. These proposals adjusted liquidity incentives across the Moonwell ecosystem, including Moonwell markets and the Safety Module. Moreover, they replenished MFAM and WELL tokens into the MOVR/MFAM and GLMR/WELL farms on Solarbeam and Stellaswap, respectively.

Sprint 1 on Zealy Has Finished! 🏃

The Moonwell community has reached the end of Sprint 1 on Zealy (formerly Crew3)! This initiative presented a unique opportunity for the community to learn about protocol fundamentals, while also expanding the reach of Moonwell. Participants completed various quests and earned exclusive rewards, competing on a leaderboard to determine who could accumulate the most “XP”.

If you missed out on Sprint 1, don’t worry — Sprint 2 will soon be available, so make sure to join in on the fun and learning!

The success of Zealy depends on community involvement, so be sure to join the conversation! Share your ideas and feedback in the ⁠🧙zealy channel in the Moonwell Discord or take part in the ongoing discussions happening on the Governance Forum to help shape Sprint 2.

About Moonwell

Moonwell is an open lending and borrowing DeFi protocol on Base, 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

An open lending and borrowing DeFi protocol built on Moonbeam & Moonriver