New Moon Update: January 2023

Hello, Cryptonauts!

Welcome to the first “New Moon Update” of 2023! The dawning of this lunar cycle holds special significance, as it aligns with the start of the Lunar New Year and the launch of a new market on Moonwell Artemis. Join us as we delve into the details and explore what’s new with Moonwell.

In late November 2022, Moonwell Governance achieved a major milestone with the passage of Moonwell Improvement Proposal 7 (MIP-7). This proposal activated new markets for Wormhole-bridged USDC, ETH, and BTC on the Moonwell Artemis protocol. The author of MIP-7 originally intended to include BUSD and xcUSDT as part of this proposal, but the assets were lacking Chainlink oracle price feeds at the time, which is a prerequisite for the creation of new markets on Moonwell.

Chainlink has since deployed a price feed for BUSD onto Moonbeam, opening the door for the asset to be listed on Moonwell Artemis. StellaSwap, co-spearheading the Moonbeam Ignite campaign, seized upon this opportunity. They made their first foray into Moonwell Governance, creating a Delegation Pitch and submitting their very first Moonwell Improvement Proposal, MIP-19.

MIP-19 passed a governance vote and was executed on January 21, successfully activating a new BUSD market on Moonwell Artemis and providing the Moonwell community with the ability to supply and borrow this popular stablecoin.

MIP-19 was followed shortly by the passage of an additional governance proposal, MIP-21, which re-balanced liquidity incentives in the Moonwell Artemis ecosystem and added WELL & GLMR rewards to the newly activated BUSD market.

The BUSD market on Moonwell Artemis has launched with Gauntlet Network’s recommended initial risk parameters listed below:

Market: BUSD.wh
Collateral Factor: 10%
Reserve Factor: 15%
Borrow Cap: 250,000
*These parameters can be adjusted through future governance proposals

Bridging BUSD from BSC (BNB Chain) has been simplified by the user-friendly, Wormhole powered bridge interface on StellaSwap. Check out the Moonwell Docs for a step-by-step breakdown of the bridging process.

The introduction of BUSD support on Moonwell Artemis couldn’t have come at a better time, as it was in sync with the beginning of the Lunar New Year, making the occasion that much more special.

To celebrate the arrival of the Year of the Rabbit, Moonwell is hosting it’s first annual Lunar New Year Festival. This event runs until the Lantern Festival on February 5th with festivities including games, giveaways, movie nights, and more! Though the festival is primarily being held on the Moonwell Discord server, don’t miss the 500 BUSD.wh giveaway on Airlyft.

Gauntlet Network has submitted their latest risk parameter update proposals for Moonwell Apollo (MIP-22) and Moonwell Artemis (MIP-23) to the Governance Forum for community discussion and Governance Portal for on-chain voting.

Every two weeks, Gauntlet Network submits governance proposals that have the ability to adjust risk parameters such as collateral factors, supply caps, and borrows caps. MIP-22 and MIP-23 differ slightly from Gauntlet’s past proposals, as they include updates to market reserve factors. For those unfamiliar, the reserve factor is the parameter controlling how much interest is routed to an asset market’s reserves, as opposed to the suppliers.

These reserve factor updates are being recommended in an effort “to standardize them for the purpose of consistency and to align with market rates”. Gauntlet has recommended implementing a reserve factor of 15% for stablecoins and 25% for volatile assets.

MIP-22 Recommendations:
Collateral Factor
- Increase the collateral factor of USDC.multi from 64.0% to 66.0%
Reserve Factor
-
Increase the reserve factor of MOVR from 20% to 25%
- Decrease the reserve factor of FRAX from 20% to 15%
- Decrease the reserve factor of USDT.multi from 20% to 15%

MIP-23 Recommendations:
Collateral Factor
- Increase the collateral factor of USDC.wh from 15.0% to 30.0%
- Increase the collateral factor of WETH.wh from 15.0% to 25.0%
- Increase the collateral factor of WBTC.wh from 15.0% to 25.0%
Borrow Cap
- Increase the borrow cap of USDC.wh from 317,000 to 412,000
- Increase the borrow cap of WETH.wh from 210 to 275
- Increase the borrow cap of WBTC.wh from 15 to 20
Reserve Factor
- Decrease the reserve factor of GLMR from 30% to 25%
- Decrease the reserve factor of xcDOT from 30% to 25%
- Decrease the reserve factor of FRAX from 25% to 15%

The voting period for these two proposals will close on 01/28 at 19:10 UTC. Cast your votes here.

As we embark on a new year, it’s important to take a moment to reflect on the achievements of the past. Though 2023 has already started off on a high note, let’s take a moment to remember the progress that was made in 2022.

A “Moonwell 2022 Rewind” video and Twitter thread has been created to commemorate and highlight the key milestones and achievements of the previous year, none of which would have been possible without the tremendous support and engagement from the Moonwell community.

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

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Moonwell

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