New Moon Update: March 2023

Moonwell
6 min readMar 30, 2023

Hello, Moonwell Community!

March’s New Moon Update is here, and we’re excited to share a wealth of updates with you! In this edition, we introduce a governance proposal for activating Moonwell on Base mainnet, announce the inaugural Moonwell Community Call, and spotlight a variety of recent developments from this month. Let’s jump right in!

Proposal to Activate Moonwell on Base Mainnet 🗳️

Coolhorsegirl, a Moonwell community member and delegate, has submitted MIP-39 to the Moonwell Governance Forum. The proposal seeks to gauge community sentiment for activating the Moonwell protocol on Base mainnet, Coinbase’s recently announced Ethereum L2 blockchain.

The proposal offers a comprehensive overview of Coinbase’s on-chain ambitions, the technology stack behind Base, the shared values between Coinbase and Moonwell, as well as the unique opportunity to connect Moonbeam and the greater Polkadot ecosystem with Ethereum in a way that was previously not possible.

All members of the Moonwell community are encouraged to review the proposal and provide feedback on the Moonwell Governance Forum.

Moonwell’s First Community Call ☎️

Mark your calendars for the inaugural Moonwell Community Call on March 31 at 18:00 UTC! Tune in to hear from guest speakers from Base and VectorDAO, catch up on governance updates, and have your questions answered. The call will be streamed simultaneously on various platforms, so members can join from their preferred platform:

🎥 Zoom: https://us06web.zoom.us/j/75587693728
🐦Twitter: https://twitter.com/MoonwellDeFi/
💬 Telegram: http://t.me/moonwellfichat
🎮 Discord: http://discord.gg/moonwellfi
📺 YouTube: https://youtube.com/@MoonwellDeFi

To celebrate this being the first community call, all attendees will have a chance to win a PunksOnBase NFT! We look forward to seeing you there!

Moonwell Is Now On Crew3 🏆

Moonwell has joined Crew3, a platform designed to help web3 communities learn, grow, and thrive. Members of the Moonwell community can take part in various quests and engage in friendly competition with others to secure their place on the leaderboard. Completing quests gives participants the chance to earn XP and unlock exclusive rewards. As you read this blog, you have already completed one quest! So what are you waiting for? Sign up on Crew 3 and start leveling up!

Moonbeam Ignite: The DeFi Voyage NFT Campaign Is Underway 🔥

Downtown Moonbeam has launched “Moonbeam Ignite: The DeFi Voyage”, an NFT campaign that is available on Galxe. Participants are able to unlock a collection of exclusive NFTs by completing tasks from five of the most prominent Moonbeam ecosystem projects, including StellaSwap, Prime Protocol, DAM Finance, Squid, and of course, Moonwell. Participants who acquire all five NFTs will also be eligible to claim a “Master NFT.” To learn more about the campaign, please visit the official blog.

Moonwell Discord Server Updates 📚

There are two new roles inside the Moonwell Discord — “Ballot Boss” and “Governerd”. These roles are available to those who have minted 10+ and 30+ Moonwell Governance NFTs, respectively. Moonwell Governance NFTs have been created to acknowledge those who participate in Moonwell Governance. If you’re someone who has voted on Moonwell Improvement Proposals (MIPs) and/or snapshot proposals, you will be eligible to mint “Voting Participant” NFTs and potentially gain access to one or both of these roles.

To view the entire Moonwell Governance NFT collection, visit the Moonwell Galxe page. For those already holding a sufficient number of these prestigious NFTs, head to the Moonwell Guild page to connect your voting wallet to your Discord account and claim your role(s)!

Also this month, we are excited to announce the addition of two new channels to the Moonwell Discord. These channels have been introduced to enhance the user experience and provide greater assistance to the Moonwell community. There is now a Knowledge Base to supplement our existing documentation and serves as a repository of information about the Moonwell protocol. Next, we have set up a support ticketing system. This allows members to request 1-on-1 assistance directly from Moonwell Moderators. Community members are able to submit their queries in private and receive personalized assistance to resolve their issues.

If you have any feedback or suggestions for improvement, please feel free to reach out to us through the appropriate channels.

ETH Denver 🎉🎉

We would like to thank everyone who made it to the Moonwell “Hacker House”, joined our Happy Hour that was co-sponsored by Moonbeam Network and Biconomy or attended Luke Youngblood’s talk at the Base HQ. It was a pleasure and we hope to do it again next year!

Latest Governance Updates 🗳️

Gauntlet Network’s Analysis And Recommendations On The USDC Market

Gauntlet Network, a contributor to Moonwell, has been closely monitoring Moonwell markets in light of the recent depegging of the USDC stablecoin. They have provided comprehensive metrics, recommendations and insights on the Governance Forum to help keep the Moonwell community informed and to better understand the risks to the Moonwell protocol. Furthermore, they have published an extensive blog post that discusses the broader situation and the unique risks that these events can pose to lending and borrowing protocols.

Gauntlet Network’s Risk Parameter Updates

This month, Gauntlet Network submitted several risk parameter update proposals (MIP-32, MIP-33, MIP-37 and MIP-38), which have passed and been executed. These proposals aim to manage protocol risk and increase capital efficiency by adjusting market parameters such as borrow caps and collateral factors.

MIP-32 Recommendations:
Borrow Cap

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Decrease the borrow cap of ETH.multi from 7,000 to 1,500
- Decrease the borrow cap of xcKSM from 70,000 to 32,000

MIP-33 Recommendations:
Collateral Factor
- Increase the collateral factor of USDC.wh from 50.0% to 60.0%
- Increase the collateral factor of xcUSDT from 10.0% to 20.0%
- Increase the collateral factor of WETH.wh from 45.0% to 50.0%
- Increase the collateral factor of WBTC.wh from 30.0% to 35.0%
- Decrease the collateral factor of BUSD.wh from 15.0% to 10.0%
- Increase the collateral factor of GLMR from 60.0% to 62.0%
Borrow Cap
- Increase the borrow cap of xcUSDT from 250,000 to 500,000
- Increase the borrow cap of WETH.wh from 800 to 1,100
- Increase the borrow cap of WBTC.wh from 60 to 110
- Decrease the borrow cap of BUSD.wh from 250,000 to 325,000

MIP-37 Recommendations:
Borrow Cap

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Decrease the borrow cap of BTC.multi from Unlimited to 4
- Decrease the borrow cap of FRAX from 5,682,000 to 3,000,000

MIP-38 Recommendations:
Collateral Factor

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Decrease the collateral factor of BUSD.wh from 10.0% to 5.0%
- Increase the collateral factor of xcUSDT from 20.0% to 30.0%

IntoTheBlock’s Grant Proposal For A Moonwell Risk Dashboard

The Lunar Technology Foundation has allocated 10% of the total WELL supply, or 500M WELL tokens, for long-term support of the Moonwell protocol and its ecosystem through developer grants.

This month, Moonwell Governance has approved Phase 1 of IntoTheBlock’s (ITB) grant proposal, following a snapshot and on-chain vote (MIP-34). The main objective of ITB’s grant is to create “a suite of risk management solutions for Moonwell and its community”, including “dashboards to monitor general and asset-specific risk indicators, API access and CSV downloads for all metrics, and documentation of Moonwell’s risk indicators and general dynamics.”

ITB requested $30,000 worth of WELL tokens for Phase 1, which involves creating a dashboard with 50% of the planned indicators enabled. Upon community review and feedback, a separate proposal for Phase 2 will be submitted at a later date, focusing on developing the remaining 50% of indicators. Community members are able to view the dashboard that ITB built for Benqi, a lending and borrowing protocol built on Avalanche, to get a sense of the user experience and what to expect.

MIP-35 and MIP-36 Have Passed!

MIP-35 and MIP-36 were submitted to the Governance Forum for community discussion and Governance Portal for on-chain voting. Both proposals were successfully executed and re-balanced liquidity incentives across Moonwell markets, the Safety Module and MFAM and WELL farms on Solarbeam and Stellaswap. The adjustments can be found on their respective forum and voting pages.

MIPs Now Have Human Readable Contract Calls!

Moonwell Improvement Proposal (MIP) contract calls are now displayed in a format that is simple for community members to read and understand. This update allows users to quickly and easily view the on-chain actions that will be executed after the approval of a MIP. Voters still have the option to view the raw contract data if they so choose.

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

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