Moonwell Governance

Summary This proposal seeks to use protocol reserves on Base to cover approximately $1.7M in bad debt resulting from the October 10th flash-crash event caused by extreme market dislocation and oracle mispricing. The goal is to restore full solvency and maintain the overall health of the protocol. Background On October 10th, extreme cross-venue price dislocations allowed an attacker to: Flash-loan cbBTC/USDC Use these as collateral Borrow VIRTUAL, MORPHO, and AERO at depressed oracle valuations Sell those borrowed assets into deeper liquidity at higher prices Repay loans and withdraw collateral Because oracle pricing diverged sharply from DEX pricing, liquidators could not unwind these positions profitably. The result was residual bad debt across several markets, including VIRTUAL, MORPHO, and AERO on Base. While this proposal addresses the October 10th bad debt, a separate ~$3.7 million shortfall remains from the later wrsETH oracle mispricing event on November 4th. Based on available reserves, this proposal may also seek to reduce bad debt in the cbXRP market, which was the most targeted market on November 4th. Moonwell currently holds approximately $1.7 million in USDC and Ethereum reserves on Base. These funds are sufficient to cover the October 10th bad debt, but not both the October 10th and wrsETH incidents in full. As a result, this proposal prioritizes repayment in markets with the highest user interest and activity, including VIRTUAL and cbXRP. The long-term goal is to repay all remaining bad debt through ongoing protocol revenue over time. Below is a list of assets and their incurred bad debt from both the 10/10 incident and the wrsETH price feed exploitation. Bad Debt from 10/10 and the wrsETH Exploit on 11/4 | Asset | Bad Debt (USD) | Reserves Available | | :--- | :--- | :--- | | VIRTUAL | ~1.3M | $13K | | MORPHO | $202K | $23K | | AERO | $191K | $252K | | cbXRP | $3M | 66K | | Total Bad Debt | ~$5M | $1.7M | AERO reserves can directly cover AERO debt; VIRTUAL and MORPHO require stable reserve usage across markets. cbXRP may also be partially remediated depending on the remaining reserve balance, and what is of highest priority due to market interest rates. Proposal Use protocol reserves on Base to repay and close non-performing positions created by the October 10th event and reduce debt in other high-interest markets where possible (for example, VIRTUAL and cbXRP). Rationale Restore protocol solvency Makes whole non-performing and operationally expensive markets for users Improves transparency and reserve reporting Aligns Moonwell with industry-standard remediation actions taken by other lending protocols in similar insolvency scenarios Leaving the bad debt unresolved reduces protocol credibility and suppresses reserve growth efficiency Future Market Stability Improvements Moonwell contributors are evaluating updated oracle configurations for volatile and long-tail assets, including “exchange-rate style” price feeds that reference both CEX and DEX liquidity, with the goal of reducing exposure to single-venue price dislocations and improving liquidation efficiency. This proposal does not define a specific oracle architecture. The DAO remains open to suggestions from the community, and external oracle providers. Voting Options YES: Use protocol reserves on Base to remediate bad debt to pay off high interest markets continuously NO: Do not use reserves; leave bad debt unresolved. ABSTAIN: No opinion / count toward quorum only.

Upgrade Moonwell’s Liquidation Incentive Recapture on Optimism’s ETH/USD Market Replace Solidity Labs’ Flat-Fee Wrapper with Api3’s Auction-Based OEV Network --- Author: Dave Connor, API3 Related Discussions: https://forum.moonwell.fi/t/switching-moonwells-glmr-market-to-using-api3s-oev-enabled-data-feed-for-glmr/1530 Moonwell Governance Call: December 2024 Submission Date: 22/07/2025 Summary Moonwell currently operates two distinct Oracle Extractable Value (OEV) recapture systems. On Moonbeam, Api3’s auction-based OEV Network is live and consistently returns significant revenue to the protocol. On Base and Optimism, Moonwell relies on a Solidity Labs-designed wrapper that charges a fixed, gas-derived tax to unlock oracle updates early. After running both systems in parallel for several months, Api3 has significantly outperformed the Solidity Labs feed wrapper, both in terms of protocol revenue and systemic design. The flat-fee wrapper has recaptured surprisingly little value, while Api3 has returned over 70% of liquidation MEV from a single low-TVL, low-liquidity market. This proposal recommends migrating the ETH/USD price feed on Optimism to Api3, to act as a proof of concept for Api3’s OEV solution in a larger TVL Moonwell market, and allow for a comparison to the current implementation of the Solidity Labs wrapper and any upcoming changes suggested (i.e. to fix the current underperformance). --- Background: Two Systems in Parallel In February 2025, Moonwell integrated Solidity Labs’ OEV wrapper on Base and Optimism. This system delays oracle updates for a configured period, currently 10 seconds, unless a liquidator pays to “unlock” the price early. The fee required is calculated as (tx.gasprice - block.basefee) * feeMultiplier, meaning it is tied entirely to gas volatility, not liquidation value. In April 2025, Moonwell adopted Api3’s auction-based OEV Network on Moonbeam. Api3’s design enables searchers to bid competitively for the right to trigger a fresh price update and execute a liquidation with real-time data. Api3 then returns 80% of the bid revenue back to the protocol. A more detailed description of how API3’s OEV solution works can be found in the previous proposal, and in Api3’s docs. There is also a video which looks into the differing approaches to OEV design between Solidity Labs and API3 in more detail. --- Issues with the Flat Fee Model for Onchain OEV 1. Raising the unlock fee doesn’t solve the problem Moonwell could try to improve value recapture by simply raising the unlock fee. But this overlooks the core flaw: the fee is calculated based on gas volatility, not the economic value of the liquidation it enables. This disconnect could lead to unintended outcomes when the fee is simply raised, for example, requiring a $1,000 payment to unlock a price that only allows for a $500 incentive. In these situations, no rational liquidator engages, and the protocol gains nothing. The liquidation still happens, just after a delay, and with no value returned to Moonwell. The problem isn’t that the fee is too low, it’s that the pricing logic is fundamentally misaligned with the opportunity it’s meant to capture. No adjustment to the fee multiplier can fix a mechanism that’s priced on the wrong variable. 2. Pegging fees to opportunity value doesn’t reliably work either You might wonder: why not solve the problem by simply tying the flat fee to the value of the liquidation? For example, the protocol could charge a fixed percentage of the incentive (e.g. 99%) and retain nearly all of the upside. But this approach breaks down under real-world execution. Imagine a liquidation that, on paper, yields a $1,000 reward. A 99% fee would leave the liquidator with $10. In theory, that’s still profitable. But in practice, performing the liquidation means the liquidator must swap the seized collateral, which can incur slippage. If that slippage is large enough the $1,000 opportunity might actually only be worth $900. That means the liquidator is paying $990 to earn $900, which is a guaranteed loss. As a result, the liquidation won’t happen through early access; it will simply occur later, after the delay period and with no value returned to the protocol. The root issue is that the wrapper has no awareness of what actually happens onchain. It can’t account for execution costs like slippage, so it misprices the opportunity. The fee ends up being disconnected from the value it’s trying to capture. This disconnect becomes more pronounced with larger liquidations, where execution costs scale with position size. Even setting the fee to something more conservative (like 50% of the estimated incentive) might ensure the liquidation is profitable, but would still leave significant value on the table. By contrast, Api3’s system lets liquidators bid based on what they expect to realize after costs. This ensures the protocol captures value that actually exists and isn’t just theoretical upside, thus avoiding pricing itself out of its own opportunities. 3. Auctions are the prevailing design Across the MEV ecosystem, there is a clear trend toward auction-based mechanisms as the preferred way to allocate value and prioritize transactions. Different systems apply this principle in different ways: Flashbots uses auctions to bundle and prioritize transactions during block building Arbitrum uses Timeboost, an auction-based ordering mechanism Api3’s OEV Network uses auctions to determine who can trigger a prioritized oracle update While the implementations vary, the underlying principle is consistent: letting participants compete based on what they can actually realize leads to better outcomes, for protocols, searchers, and end users alike. --- Comparative Performance: Solidity Labs vs Api3 Solidity Labs (Feb 25 – Jul 7, 2025) Base - Base Dune dashboard Total MEV: $537,634.77 Protocol revenue: $7.00 Capture rate: 0.0013% Total liquidations: 7,515 OEV-enabled (early unlocks): 223 Over 97% of liquidations were executed with a delay (not using OEV) Optimism - Optimism Dune dashboard Total MEV: $97,121.80 Protocol revenue: $0.55 Capture rate: 0.0005% Total liquidations: 448 OEV-enabled: 75 ~83% of liquidations were executed with a delay (not using OEV) Api3 (Apr 18 – Jul 7, 2025, GLMR/USD only on Moonbeam) - OEV dashboard for Moonbeam GLMR/USD market Total MEV: $4,829.57 Processed via OEV auctions: $3,568.42 Protocol revenue: $2,556.16 Capture rate: ~70% Value returned per $ TVL secured Solidity Labs: $0.000000025 Api3: $0.005 Despite operating on a single feed with significantly lower TVL, in a liquidity-constrained environment, Api3 returned thousands of times more value than the Solidity Labs system. --- What the Protocol Missed The cost of continuing with the current system is not abstract, it's measurable. If Api3’s auction-based OEV Network had been live on Base and Optimism during the same time period, Moonwell could have recaptured an estimated $400,000 in additional protocol revenue. That revenue wouldn’t just have gone unclaimed, it would have translated directly into stronger protocol economics. Based on historical token pricing and acquisition patterns, this additional value could have enabled Moonwell to acquire approximately 13 million more WELL tokens through reverse auctions. During the same period, 31 million WELL was acquired under the existing setup. With Api3’s system in place, that number could have risen to 44 million WELL, representing a 42% increase. This isn’t a hypothetical improvement. It reflects a tangible, quantifiable opportunity lost due to the limitations of the current fee model. Limiting the initial switch to Optimism, and to a single market is designed to allow continued comparisons to be made with the Solidity Labs designed OEV solution in production, and prove to the Moonwell community the benefits of switching more feeds in future. --- Why Api3? Api3’s OEV Network has been live with Moonwell on Moonbeam since April, where it has consistently delivered strong value recapture, despite initially operating on a single feed in an environment with thin liquidity, high slippage, and poor routing. These conditions are suboptimal for MEV searchers, yet the system has still performed well. An integration on a single feed on Optimism would provide a risk-minimized approach to demonstrating the potential returns that swapping more feeds to Api3 would bring. Api3 has already distributed nearly $300,000 in OEV revenue to integrated protocols, including Yei Finance, a lending market with over $400M in TVL on the Sei Network, and Compound Finance on Mantle. Api3 supports hybrid feeds (like wstETH/USD) that are currently unsupported by the Solidity Labs wrapper. It also operates across more than 40 EVM chains, giving Moonwell flexibility to expand its markets without needing new infrastructure. The system has already proven that it works under pressure. On chains like Base and Optimism, where liquidity is deeper, routing is better, and searcher activity is higher, the system is expected to perform more successfully. --- Implementation Plan 1. Replace current ETH price feed on Optimism with Api3’s price feed 2. Api3 will manage feed deployments and updates 3. Monthly OEV revenue (80%) is returned to Moonwell (e.g., via addReserves) 4. A monthly report will be published and shared on the forum with complete liquidation and revenue data 5. A public dashboard for Api3’s performance on Optimism will go live shortly after proposal execution, and will be shared on the forum (a similar dashboard for Moonwell on Moonbeam is here https://oev-dashboard.api3.org/#/dapps/moonwell-moonbeam) This upgrade requires no changes to the core protocol and can be executed with minimal coordination. --- Conclusion The Solidity Labs wrapper was an interesting attempt to build an onchain-only OEV solution, but the data and logic show it has not performed as intended: It fails to price liquidations accurately It leaves most value on the table It does not support hybrid feeds By contrast, Api3’s auction-based system has already outperformed in difficult environments, including the extreme volatility seen during February 2025, not only operating flawlessly but successfully returning value to users. Api3 has already been shown to work without issues and return value to Moonwell through the Moonbeam deployment. Switching the ETH/USD feed on Optimism to Api3 will allow for more direct comparisons to be made between the Solidity Labs solution and Api3, and show the Moonwell community the benefits of a wider switch to Api3. Improving protocol revenue will further help increase security by improving yield paid to safety module stakers, encouraging more WELL to be staked. Using Api3 also gives Moonwell the ability to scale cross chain easily to any Api3 supported chain, regardless of MEV presence, and without having to wait for any additional infrastructure to be deployed. --- Vote Options Yay – Replace the Solidity Labs wrapper with Api3’s data feed address for the ETH/USD feed on Optimism, enabling Api3 to recapture OEV Nay – Retain the current system and continue with negligible OEV recapture Abstain – No opinion

Summary This proposal recommends replacing Elliot from Solidity Labs with Ana (@anajuliabit) as a member of the Moonwell Security Council. Ana is a core developer for both Moonwell and Mamo, and her expertise and direct involvement with the protocol make her an ideal candidate to strengthen the Security Council. She is very familiar with the onchain proposal process, and is a lifesaver in all technical developments of the protocol. This is not a hostile removal by any means, Elliot recently winded down Solidity Labs, and is stepping away from his involvement at Moonwell. Additionally, Ana formerly worked with Elliot but was enshrined into the Moonwell team. Motivation For those unfamiliar, the Moonwell Security Council plays a critical role in safeguarding the protocol and responding to emergency situations. Given Ana’s deep familiarity with Moonwell’s codebase and operations, her addition would provide the Council with enhanced technical expertise and protocol-specific knowledge. Elliot has served diligently on the Security Council, and this proposed change reflects the evolving needs of the protocol rather than any concern regarding past performance. Rationale Technical Expertise: Ana is a core contributor to Moonwell and Mamo, giving her firsthand knowledge of the protocol’s architecture and security requirements. Responsiveness: As an internal developer, Ana can respond swiftly in the event of an emergency requiring Security Council action. Alignment: Ana’s day-to-day involvement with Moonwell ensures her incentives are directly aligned with the protocol’s safety and success. Specification Remove Elliot (Solidity Labs) from the Moonwell Security Council multisig. Add Ana (@anajuliabit) as a new signer on the Security Council multisig. This proposal requests that the Moonwell DAO approve this change and authorize the necessary updates to the Security Council’s Gnosis Safe configuration. Next Steps & Voting Options If approved, this change will be implemented by the appropriate Moonwell DAO administrators or multisig signers.

Summary This proposal seeks to update the composition of the Moonwell Security Council by removing Gauntlet and adding Anthias Labs. This change reflects the recent transition in the Moonwell DAO’s risk management partnership, with Anthias Labs now serving as the protocol’s risk manager. Motivation Gauntlet has served the Moonwell community with dedication, providing invaluable support as a risk manager and as a Security Council member. Their contributions have played an important role in strengthening the protocol’s risk framework with the MALF, and overall security. Following Gauntlet’s decision to step down as Moonwell’s risk manager, it is appropriate to also transition their Security Council responsibilities. Anthias Labs, the DAO’s new risk management partner, brings fresh perspectives and advanced methodologies to Moonwell’s risk oversight. Including Anthias on the Security Council will align security governance with our current risk management team, ensuring continuity and effective collaboration in safeguarding the protocol. Rationale Since Anthias has been approved through an on-chain vote as the borrow and supply cap guardian for all of Moonwell’s core markets, it is both logical and appropriate for them to also hold a seat on the Security Council. Gauntlet’s membership on the Security Council was closely tied to its role as the protocol’s risk manager, as that position required emergency access to respond swiftly to vulnerabilities, whether technical, economic, or otherwise. This proposal ensures that the Security Council remains aligned with the DAO’s active risk management partner. Specification Remove Gauntlet from the Moonwell Security Council multisig. Add Anthias Labs as a signer on the Security Council multisig. This change will update the Council to reflect the DAO’s new risk management structure. This proposal requests that the Moonwell DAO approve this change and authorize the necessary updates to the Security Council’s Gnosis Safe configuration. Next Steps & Voting Options Upon DAO approval, Moonwell’s administrators or multisig signers will execute the necessary updates to the Security Council’s Gnosis Safe configuration.

Summary This proposal seeks to list cUSDO, a non-rebasing, yield-bearing stablecoin issued by OpenEden, as a new market on Moonwell Base. cUSDO is a wrapped version of USDO — a stablecoin backed 1:1 by U.S. Treasury Bills — and allows users to earn real-world yield while participating in DeFi lending, borrowing, and collateralization within the Moonwell ecosystem. --- Motivation Integrating cUSDO brings several benefits to Moonwell: Capital Efficiency – Supply cUSDO, earn passive yield, and use it as collateral simultaneously. Real-World Yield – Backed by U.S. T-Bills through OpenEden's USDO vault. Non-Rebasing = DeFi Ready – cUSDO maintains ERC-20 compatibility, avoiding issues of rebasing tokens. Institutional-Grade Structure – Transparent, regulated custodianship, real-time reserve attestation. This listing would further Moonwell’s mission to bridge DeFi and real-world assets (RWAs). --- Asset Overview | Item | Description | | ---------------- | --------------------------------------------------------------------------------------------------------------- | | Token Name | cUSDO (Compounding Open Dollar) | | Type | ERC-20, yield-bearing, non-rebasing | | Network | Base | | Token Address | 0x83dB73EF5192de4b6a4c92bD0141Ba1a0Dc87c65 | | Contract Code | Verified Source on BaseScan | | Issuer | OpenEden | | Underlying Asset | USDO (rebasing stablecoin backed by T-Bills) | | Documentation | OpenEden Docs | | Audit | ChainSecurity (No critical issues) – Audit Report | | Oracle Status | Chainlink | --- Market Risk Assessment 1. Swap Size & Liquidity A \$500K swap on Base and Ethereum DEXs (e.g., Aerodrome, Curve) results in <25% price impact. !Screenshot 2025-05-29 025237|365x500, 75%!Screenshot 2025-05-29 025329|363x500, 75% 2. TVL Requirements Combined TVL of USDO and cUSDO > \$40M across Base and other chains. !Screenshot 2025-05-29 042910|510x500, 60%!Screenshot 2025-05-29 042634|513x499, 60% 3. Security & Audit Fully verified contract Standard role-based access controls for mint/burn Third-party audit by ChainSecurity (no critical vulnerabilities) Transparent reserves and regulated custodians 4. Market Caps on BASE: 3.5M on ETHEREUM: 214M 5. Total Transactions on BASE: 65K transfers & 15K direct txs & 9K holders on ETHEREUM: 60K transfers & 9K direct txs & 2K holders 6. Age of Token on BASE: 131 days on ETHEREUM: 237 days --- Smart Contract Review Contract: cUSDO Proxy Architecture: The cUSDO contract is deployed as an ERC1967Proxy. Base Contracts: The logic implementation inherits from OpenZeppelin’s battle-tested upgradeable libraries: * ERC4626Upgradeable – Vault standard * AccessControlUpgradeable – Role-based permissions * PausableUpgradeable – Circuit breaker functionality * IERC20PermitUpgradeable, EIP712Upgradeable – Meta-transactions support Permission Structure: Role-based access is enforced using AccessControl. Critical roles include: * DEFAULTADMINROLE * UPGRADER_ROLE * PAUSER_ROLE All minting/burning and upgrades are gated by these roles. Security Observations: * ChainSecurity audit (Feb 2024) identified no critical issues. * No proxy self-destruct, delegatecall hazards, or unsafe upgrade paths were found. * The proxy implementation was verified on BaseScan and follows standard OpenZeppelin conventions. Blacklist Functionality: No. Is the token pausable? Yes. Does the project have an active bug bounty program? No. Top 10 holders on Base click here for latest changes! | Rank | Address | Name Tag | Quantity | % Supply | Value (USD) | | ---- | -------------- | ----------------- | ------------ | -------- | -------------- | | 1 | 0x1155...a28 | PT-cUSDO | 2,029,779.43 | 58.56% | \$2,068,345.24 | | 2 | 0x5fed...023 | Aerodrome-LP | 806,591.92 | 23.27% | \$821,917.16 | | 3 | 0x5e3a...ba0 | Curve-LP | 373,079.07 | 10.76% | \$380,167.57 | | 4 | 0xbbbb...fcb | Morpho: Morpho | 144,642.12 | 4.17% | \$147,390.32 | | 5 | 0xe79c...262 | | 14,816.28 | 0.43% | \$15,097.79 | | 6 | 0xf875...142 | | 8,912.84 | 0.26% | \$9,082.18 | | 7 | 0x39c3...959 | | 8,338.93 | 0.24% | \$8,497.37 | | 8 | 0x77b5...78c | | 7,583.06 | 0.22% | \$7,727.13 | | 9 | 0x5d47...068 | pandario.base.eth | 4,937.63 | 0.14% | \$5,031.44 | | 10 | 0x3399...d9f | | 4,751.73 | 0.14% | \$4,842.01 | --- Why List cUSDO Instead of USDO |Feature|USDO|cUSDO| | --- | --- | --- | |Token Type|Rebasing|Non-rebasing| |DeFi Compatibility|Limited|Full (ERC-20 standard)| |Interest Handling|Balance increases via rebasing|Value increases via internal exchange rate| |Use as Collateral|Problematic|Seamless| |Price Oracle|Less practical|Available via Chainlink| Reserve Attestation Transparency OpenEden's USDO vaults are backed 1:1 by U.S. Treasury Bills. Reserve holdings are verified via a live Chainlink Proof-of-Reserves (PoR) oracle, ensuring transparency and onchain trust in the asset’s collateralization. Risk Considerations To ensure safe integration, the following risks should be reviewed: RWA Exposure – USDO is backed by U.S. T-Bills. Low volatility but subject to regulatory or market shifts. Centralization – While the token is issued by a regulated entity (OpenEden Digital Limited), it remains a centralized asset in terms of custody and minting permissions. However, it uses independent custodians (e.g., Zodia Custody) and a bankruptcy-remote trust structure to mitigate this. Oracle Risk - Chainlink’s native cUSDO/USD price feed is live and operational on Base, ensuring a decentralized and reliable price source. It uses a time-weighted average price (TWAP) model to reduce volatility or manipulation. And Of Course Smart Contracts Risk! --- OpenEden Team Overview OpenEden was founded in 2022 by a team of seasoned professionals with extensive experience in both traditional finance and the digital asset industry. The team collectively brings experience from top-tier institutions such as Goldman Sachs, Morgan Stanley, Deutsche Bank, Barclays, BlockFi, Bybit, Binance, SEA, and Accenture. twitter(X) : profile with 55K followers linkedin : profile with 19 employees discord: profile with 2.8K members telegram : channel with 2K subscribers Service Providers of OpenEden | Category | Service Provider | | ----------------------- | ---------------------------------------- | | Digital Asset Issuer | OpenEden Digital Limited | | Digital Asset Custody | Bitgo Custody / Coinbase MPC Web3 Wallet | | Smart Contract Auditor | ChainSecurity | | Financial Auditor | Harris And Trotter | | Onramp | Coinbase Prime | | Compliance Analytics | Elliptic | | Offshore Representation | Carey Olsen | | Third-party Signing | Protege Fund Services | --- Technical Implementation Plan 1. @Gauntlet Risk Assessment – Set CAPS , CF , and IR model. 2. Snapshot proposal – Community approval on Snapshot will be required before proceeding to mainnet launch. 3. Mainnet Launch – Deploy with active monitoring and community feedback. * MIP-based deployment using Moonwell Contracts V2 guide Proposal Author Information Name: AsgardAdmin X: Azgardinvest Github: AzgardMultiSig (AzgardAdmin) · GitHub Delegate Address: 0xC4c1e942c6B97EE736d15E6edE71dBc323200c3d Relationship with Token: I have no personal or professional relationship with openeden team. Conclusion cUSDO is a strong candidate to expand Moonwell’s Base markets with a secure, transparent, and yield-generating RWA-backed asset. The combination of Chainlink oracles, proof of reserves, and OpenZeppelin-based upgradeable contracts offers both transparency and safety. We look forward to the community’s feedback and collaboration to move this proposal forward.

Switching all Moonbeam Markets to using API3’s Data Feeds to Maximize OEV Recapture Author: Dave Connor, API3 Related Discussions: https://forum.moonwell.fi/t/switching-moonwells-glmr-market-to-using-api3s-oev-enabled-data-feed-for-glmr/1530 Forum Thread Moonwell Governance Call: December 2024 Submission Date: 09/06/2025 Summary Moonwell recently switched to using API3 to supply price data for GLMR/USD on Moonwell’s Moonbeam market. This proposal seeks to boost the yield that Moonwell’s Moonbeam deployment generates by switching to using API3’s dAPIs (data feeds) for all markets. API3’s OEV data feeds have been used in production without problems for months by many lending markets, including Compound V2 forks (like Moonwell) and Compound. Switching the remaining markets on Moonwell to using API3 would simply involve changing the addresses that the data feeds are read from, as with the switch for GLMR/USD. This proposal does not compete with The Solidity Labs onchain OEV solution currently used by Moonwell on Superchain L2s, which is expected to not work reliably on chains where MEV exists, such as Moonbeam. Similarly, while this proposal directs the revenue from OEV to the addReserves function of the GLMR core maket on Moonbeam, there are many alternatives that could be explored in future proposals from the Moonwell community, such as reducing effective liquidation penalties. Overview A more detailed description of how API3’s OEV solution works can be found in the previous proposal, and in Api3’s docs. There is also a video which looks into the differing approaches to OEV design between Solidity Labs and API3 in more detail. Since GLMR/USD was switched from Chainlink to API3 in late April, API3 helped return over $680 to Moonwell on Moonbeam, via the addReserves function on the contract. The OEV returned to Moonwell represented approximately 87% of potential value that could have been recaptured, which can be used as a more reliable figure to demonstrate performance than absolute $ value, which will be low during periods of time where market volatility is lower. A breakdown of this, showing all liquidations, can be seen here. Note that the OEV Dashboard shows all Moonwell liquidations on Moonbeam, so currently underreports OEV percentage. The link in the previous sentence filters by asset, and is more accurate. Switching all feeds over to API3 will help improve the number of liquidations that can have OEV recaptured, as well as the value returned. This proposal will switch all data feeds used by Moonwell on Moonbeam to API3, which will improve the value recaptured further. Motivation The Solidity Labs onchain OEV solution currently used by Moonwell on Superchain L2s is expected to not reliably work where MEV exists, like on Moonbeam. In order to be able to recapture OEV, an alternative solution is needed. API3 has proven the viability of their OEV solution on the GLMR market, and this proposal will extend it to all markets, maximising recapture for Moonwell on Moonbeam. This can act as a proof of concept for Moonwell, as API3 are willing to support Moonwell’s cross chain expansion plans, and API3 enable recapture on chains even if MEV is available. Implementation API3 will ensure every feed currently used by Moonwell on Moonbeam is live and ready to be used. Moonwell will switch from reading prices from Chainlink’s data feeds to equivalent pairs API3’s dAPIs. The GLMR market has already been switched to using API3. Should this proposal pass, the other markets on Moonwell’s Moonbeam deployment will utilise the following feeds from API3: xcDOT - DOT/USD FRAX - FRAX/USD xcUSDT - USDT/USD xcUSDC - USDC/USD ETH.wh - ETH/USD BTC.wh - BTC/USD USDC.wh - USDC/USD These feeds are already live and available at the time of this proposal, and can be viewed, and first party sources verified, on market.api3.org OEV accrued will be distributed to the GLMR core market on Moonbeam’s reserves using the addReserve function. This process will be visible onchain and verifiable by Moonwell community members. API3 maintains a dashboard showing these metrics as well, available at https://oev-dashboard.api3.org/. For viewing current OEV statistics, note that filtering by asset is necessary, as it currently shows all liquidations on Moonbeam. This link shows the GLMR liquidations only to better check OEV performance - https://oev-dashboard.api3.org/#/dapps/moonwell-moonbeam?query=GLMR&from=2025-04-24&to=2025-06-04 Voting Yay - Moonwell will switch all current markets from using Chainlink to API3 on Moonbeam. API3 will continue distributing 80% of the OEV proceeds to Moonwell, via the addReserves function on the GLMR core market on Moonbeam. Nay - No changes will be made Abstain - Abstain

Token: cbDOGE Contract Address (Base): 0xcbD06E5A2B0C65597161de254AA074E489dEb510 We are pleased to present a proposal for adding Coinbase Wrapped DOGE (cbDOGE) to Moonwell’s Base Core Markets. cbDOGE is a fully‑collateralised, ERC‑20 representation of DOGE that is minted and redeemed 1‑for‑1 through Coinbase. The listing would bring one of crypto’s most recognizable retail assets to the protocol, deepen liquidity on Moonwell, and attract new and perhaps more “degen” users familiar with DOGE. Similar to cbXRP, cbDOGE is new, but has shown promise to be a listed asset for the future. Benefits to the Moonwell Community 1. Enhanced Liquidity & Volume: Coinbase issuance immediately bootstrapped > $1.8 M market cap and ~ $300 k first‑day volume on Base DEXs. 2. New User Acquisition: Dogecoin’s X account counts > 3.7 M followers, offering exposure for Moonwell. 3. Diversification: Introduces a PoW meme‑coin collateral un‑correlated with ETH/L2 governance tokens. Resources and Socials Website Twitter Coinbase Assets Announcement Market Risk Assessment !|624x389 Market Metrics (Source) Market Cap: $1.82M Minimum/Maximum Market Cap (Last 6 months): $0 (December 5th 2024) / $1.82M (June 5th 2025) Circulating Supply: 10.4M cbDOGE Maximum Supply: 10.4M cbDOGE 24 Hour Trading Volume: It has only been out for a day, it is currently $566,000 worth of trading volume through Aerodrome Liquidity on Centralized Exchanges This does not apply to this token as it stands to be an Base deployment of DOGE. Herfindahl Index: 0.86 (on Base) The Herfindahl Index quantifies token concentration among holders. A value of 0.86 reflects significant concentration among wallets for the cbDOGE token, indicating that governance risks stemming from concentrated holdings are high. It should be noted however that Coinbase is a reputable company, and that cbDOGE borrows from Coinbase’s reserve supply on and so this may not be a completely accurate representation and there are some safeguards. Decentralization Top 10 Holders (Majority is concentrated in a Coinbase wallet followed by an Aerodrome LP) Token Contract: 0xcbD06E5A2B0C65597161de254AA074E489dEb510 Ownership and Administration: cbDOGE operates as an onchain Base native deployment of DOGE, backed by the reserves of Coinbase. The token is only on Base as of now, and all administrative roles and access are through Coinbase. Governance Structure: Coinbase Wrapped Assets are held in custody by Coinbase, and thus are subject to rules of Coinbase’s Custody depending on the jurisdiction: see here for asset-specific details. Blacklist Functionality: The cbDOGE contract has a blacklisting function, barring an account from transferring, minting, or burning cbDOGE. There is also an "unBlacklist" function for removing blacklisting and a blacklist public getter to check the status of the blacklist. Smart Contract Risks Codebase and Onchain Activity The smart contract for cbDOGE can be found here. cbDOGE has only 174 holders as of right now. Security Posture cbDOGE is deployed under the same wrapped framework that was audited by OpenZeppelin. See here for auditing details. Upgradeability It is upgradeable under an Admin role found in the contract. cbDOGE can be upgraded at any time by the proxy admin (likely a Coinbase multisig). Oracle Assessment Chainlink oracle price feed address: 0x8422f3d3CAFf15Ca682939310d6A5e619AE08e57 Is the asset a wrapped, staked, or synthetic version of a different underlying asset? If yes, and the Chainlink price feed provides price data for the underlying asset rather than the wrapped, staked, or synthetic version, please provide the following information: How is the asset wrapped, staked, or otherwise created? * cbDOGE price tracks DOGE by leveraging Coinbase reserves. The supply on Base is capped by Coinbase Custody. This can be found here on its Coinbase Proof of Reserves page. Swap Size Requirement cbDOGE does not currently fulfill the swap size requirements of the MALF; however, it is very early in the listing process AND cbDOGE has only been out for one day. !|298x410 Liquidity Threshold Currently, the liquidity does not meet the $2M threshold Moonwell has under MALF; however, seeing as though liquidity on Aerodrome has already hit 8% of that goal in a day, it is not far fetched to see it hitting this threshold sooner rather than later. !|624x193 Commercial Viability We can use the utilization rate patterns from Gauntlet’s dashboard of comparable long‑tail assets; two scenarios can show cbDOGE’s revenue outlook. Scenario 1 (TBTC‑like) assumes $3M supplied liquidity, 37% utilization and an 8% borrow APR, numbers that resemble TBTC’s current profile, and would generate roughly $89k in annual interest, sending ≈ $1.1k per month to Moonwell reserves and clearing the $1k commercial‑viability bar. Scenario 2 (WELL‑like) takes a stricter view: $2M supplied, 20% utilization and a 6% APR produce about $24k in yearly interest and ≈$300 per month in reserves, below the target yet attainable with modest growth. Proposal Author Information Name: Coolhorsegirl & 0xMims Twitter: Coolhorsegirl & 0xMims Relationship with token: 0xMims is a Moonwell governance lead and CHG is a Moonwell delegate. Conclusion For all other information, such as risk assessments or lacking information found within this document for commercial viability, we ask @Gauntlet and @AnthiasLabs to make the proper risk assessments and commercial viability assessment needed to continue. The listing of cbDOGE as a core asset on Moonwell unlocks significant potential for protocol growth, liquidity expansion, and user adoption. As a stable and compliance-ready asset, a cbDOGE listing would increase lending functionality while aligning with Moonwell’s mission of simple, secure, and accessible DeFi. While this listing is risky, it is definitely warranted to bring this to discussion immediately to stay ahead in the game. We invite the community to engage in discussion and help shape this listing proposal to best serve the protocol’s long-term vision.

We are pleased to present a proposal for adding Coinbase Wrapped XRP (cbXRP) to Moonwell’s Base Core Markets. cbXRP is a fully‑collateralised, ERC‑20 representation of XRP that is minted and redeemed 1‑for‑1 through Coinbase. The listing would bring a blue‑chip, payments-oriented asset to the protocol, deepen liquidity on Moonwell, and attract new retail and institutional users familiar with XRP. cbXRP is new, and as a result has a few liquidity concerns, but it shows substantial benefits to the Moonwell community. Benefits to the Moonwell Community 1. Enhanced Liquidity & Volume: Issuance by Coinbase immediately bootstraps liquidity on Aerodrome and Uniswap v4. 2. Stable Collateral Type: Tight 1‑for‑1 peg to XRP backed by a regulated custodian. 3. New User Acquisition: XRP has one of the largest retail followings (3M+ on X), offering growth potential for Moonwell. 4. Diversification: Adds a non‑USD‑pegged, large‑cap asset that is un‑correlated with ETH/Layer‑2 governance tokens. Resources and Socials XRP Website Twitter Coinbase Assets Announcement Benefits to the Moonwell Community 1. Enhanced Liquidity & Volume: Coinbase issuance bootstraps liquidity on Aerodrome and Uniswap v4. 2. Stable Collateral Type: Maintains a tight 1‑for‑1 peg to XRP backed by a regulated custodian. 3. New User Acquisition: XRP boasts over 3M followers on X, offering growth potential. 4. Diversification: Adds a non‑USD‑pegged, large-cap asset uncorrelated with ETH or L2 governance tokens. Resources and Socials: XRP Website Twitter Coinbase Assets Announcement --- Market Risk Assessment !|624x373 Market Metrics (Source) Market Cap: 5M Minimum/Maximum Market Cap (Last 6 months): $0 (December 5th 2024) / $5M (June 5th 2025) Circulating Supply: 2.3M cbXRP Maximum Supply: 2.3M cbXRP 24 Hour Trading Volume: It has only been out for a day, it is currently $341,000 worth of trading volume through Aerodrome Liquidity on Centralized Exchanges This does not apply to this token as it stands to be an onchain deployment of XRP. Herfindahl Index (on Base): The Herfindahl Index quantifies token concentration among holders. A value of 0.88 reflects significant concentration among wallets for the cbXRP token, indicating that governance risks stemming from concentrated holdings are high. It should be noted however that Ripple and Coinbase are reputable companies, and that cbXRP borrows from Coinbase’s reserve supply on and so this may not be a completely accurate representation and there are some safeguards. Decentralization Top 10 Holders (Majority is concentrated in a Coinbase wallet followed by an Aerodrome LP) Token Contract: 0xcb585250f852c6c6bf90434ab21a00f02833a4af Ownership and Administration: cbXRP operates as an onchain Ethereum native deployment of XRP, backed by the reserves of Coinbase. The token is only on Base as of now, and all administrative roles and access are through Coinbase or Ripple. Governance Structure: Coinbase Wrapped Assets are held in custody by Coinbase, and thus are subject to rules of Coinbase’s Custody depending on the jurisdiction: see here for asset-specific details. Blacklist Functionality: The cbXRP contract has a blacklisting function, barring an account from transferring, minting, or burning cbXRP. There is also an "unBlacklist" function for removing blacklisting and a blacklist public getter to check the status of the blacklist. Smart Contract Risks Codebase and Onchain Activity The smart contract for cbXRP can be found here. cbXRP has only 264 holders as of right now. Security Posture cbXRP is deployed under the same wrapped framework that was audited by OpenZeppelin. See here for auditing details. Upgradeability It is upgradeable under an Admin role found in the contract. cbXRP can be upgraded at any time by the proxy admin (likely a Coinbase multisig). Oracle Assessment Chainlink oracle price feed address: 0x9f0C1dD78C4CBdF5b9cf923a549A201EdC676D34 Is the asset a wrapped, staked, or synthetic version of a different underlying asset? If yes, and the Chainlink price feed provides price data for the underlying asset rather than the wrapped, staked, or synthetic version, please provide the following information: How is the asset wrapped, staked, or otherwise created? * cbXRP price tracks native XRP by leveraging Coinbase reserves. The supply on Base is capped by Coinbase Custody. This can be found here on its Coinbase Proof of Reserves page. Swap Size Requirement cbXRP does not currently fulfill the swap size requirements of the MALF; however, it is very early in the listing process AND cbXRP has only been out for one day. Liquidity Threshold: Currently, the liquidity does not meet the $2M threshold Moonwell has under MALF; however, seeing as though liquidity on Aerodrome has already hit 8% of that goal in a day, it is not far fetched to see it hitting this threshold sooner rather than later. !|624x492 Commercial Viability Even if cbXRP never rises above cbETH’s historical peak utilisation of ≈ 33 %, it still clears Moonwell’s $1000‑per‑month bar. Using a hypothetical $2 million liquidity seed, a third being borrowed at typical core‑asset rates (around 10% APY) would generate roughly $90000 in annual interest. After Moonwell’s 15% reserve cut, that’s just over $1100 in protocol revenue every month, which is above the MALF threshold with decent headway for growth. Proposal Author Information Names: Coolhorsegirl & 0xMims Twitter: @coolhorsegirl & @0xMims Relationship to token: * 0xMims: Moonwell governance lead * Coolhorsegirl: Moonwell delegate; Tally employee Conclusion For all other information, such as risk assessments or lacking information found within this document for commercial viability, we ask @Gauntlet and @AnthiasLabs to make the proper risk assessments and commercial viability assessment needed to continue. The listing of cbXRP as a core asset on Moonwell unlocks significant potential for protocol growth, liquidity expansion, and user adoption. As a stable and compliance-ready asset, a cbXRP listing would increase lending functionality while aligning with Moonwell’s mission of simple, secure, and accessible DeFi. While this listing is risky, it is definitely warranted to bring this to discussion immediately to stay ahead in the game. We invite the community to engage in discussion and help shape this listing proposal to best serve the protocol’s long-term vision.

Abstract Anthias Labs proposes to serve as a risk partner starting with Moonwell’s Base markets, where 90% of Moonwell TVL resides. We are confident that these markets will gain significant value from our expertise as an additional risk manager, and are eager to take on this role for the DAO. More on our team and our approach to risk management is below. About Anthias Labs Founded in 2022, Anthias Labs is a boutique on-chain advisory firm focused on DeFi risk management and system design. We protect protocols with mission-critical risk infrastructure and advisory. Anthias' partners have included Felix Protocol, Arbitrum DAO, Uniswap and more. We have supported these partners with technical research, open source development, and custom monitoring systems. We take an approach to risk management that prioritizes a small handful of clients at a time, with whom we are able to work at great depth, as opposed to overly splitting focus. Risk is an on-the-ball business, so our focus is to dedicate ourselves fully to the partners we work with. Selected Anthias work includes: DEX liquidity pool asset ratio optimization research Native asset staking hub risk management LP condition simulation tooling Longform risk analysis on critical decentralization operations Qualitative and quantitative RWA risk analysis Additionally, if we had served as a risk manager for Moonwell over the past few months, we would have proposed the following risk recommendations for April. We’re sharing this to allow the DAO to assess the quality and thoroughness of our work: Anthias For Moonwell - April, 2025 - Work Sample Partnership Scope As a risk partner for Moonwell’s Base markets, we will be focused on the following: Core Parameter Risk Recommendations for Moonwell on Base Scope: Collateral Factors, Reserve Factors, Supply Caps, Borrow Caps, Interest Rate Curve Parameters (Base, Kink, Multiplier, Jump Multiplier) Delivery Schedule: Every 28 days Minimum Reserves for Moonwell Base Markets Scope: Min reserves assessment for the Base markets on Moonwell to balance risk and growth Delivery Schedule: Every 28 days Dynamic Risk Recommendations for Moonwell on Base Scope: Supply Caps, Borrow Caps Delivery Schedule: Throughout the month as necessary Risk Recommendations for New Base Assets Scope: Risk analysis and Core Risk Parameter Recommendations for new asset listing proposals for Base assets proposed to the Moonwell that pass a temperature check Delivery Schedule: Throughout the month as necessary Analysis of Ad Hoc Proposals to the Moonwell Governance Forum (Example) Scope: Analysis of proposals brought to the Moonwell Governance Forum (forum.moonwell.fi). This will include proposals that extend beyond asset listings but can include concepts like increasing governance participation like the post linked above from @Luke. We would also like to work with the DAO to eventually assess other aspects of DAO operations like treasury management. Delivery Schedule: Throughout the month as necessary Performance Evaluation To ensure accountability, the DAO can assess our effectiveness as a risk contributor based on the following performance metrics: Timely risk recommendations: Core parameter and minimum reserve recommendations delivered at the cadence listed above. Long-tail risk coverage: incidents (like with rsETH bug) are reported within 24 hours. New asset listings: asset listing requests that pass a temp check should have risk parameters from our team within 48 hours. Timeline We hope to begin this tenure as a risk partner focused on Moonwell’s Base markets and then can expand once we prove value to the DAO. If this temperature check is received well by the DAO we will take steps to becoming the additional risk manager for Moonwell on Base Core Markets. Budget Anthias requests $25,000/month to serve as a risk partner for Moonwell’s Base markets. If we expand to further markets, we can adjust this monthly fee, but we want to demonstrate value on Base to start. This payment stream can be cancelled should the DAO vote at any time to end it. Closing Thank you to the full Moonwell community and many community members for support in the drafting of this proposal. We look forward to serving the DAO if the DAO will have us! If you have any questions on the proposal or want to discuss further before commenting, feel free to reach out to @OxBroze on Telegram or team@anthias.xyz.

Summary I am pleased to present a proposal for the addition of USDT0, a multichain variant of Tether (USDT), to the Moonwell protocol’s Core lending markets. USDT0 brings the stability and familiarity of Tether into an advanced cross-chain infrastructure, powered by LayerZero’s Omnichain Fungible Token (OFT) standard. With high trading volume, a circulating market cap of $900M, and rapidly expanding adoption across chains like Ink and Unichain, listing USDT0 will further strengthen Moonwell's position as a leader in onchain lending. This proposal details the technical, economic, and governance aspects of USDT0 and argues for its inclusion as a Core Market on OP Mainnet for Moonwell. General Information Token: USDT0 USDT0 is an omnichain version of Tether’s stablecoin built to unify fragmented USDT liquidity across chains. It is backed 1:1 by locked USDT on Ethereum, enabling seamless minting and redemption across ecosystems via LayerZero. Unlike wrapped assets or bridge tokens, USDT0 achieves direct interoperability through native mint/burn logic and a dual-DVN (Decentralized Verification Network) security configuration. It is designed for high throughput, regulatory compliance, and rapid settlement. Benefits to the Moonwell Community 1. Enhanced Liquidity and Volume Listing USDT0 will inject a stable, high-volume asset into the protocol. With a 30D trading volume of $2.9B and 24H volume of $215M (as of April 22, 2025), USDT0 can anchor borrowing activity and reduce slippage across all Core Markets. 2. Stable Collateral Type USDT0 offers price stability backed by redeemable assets on Ethereum. It serves as an ideal stable collateral option for borrowers and liquidity providers seeking predictability. 3. Interoperable and Cross-Chain Compatible Because it conforms to the OFT standard, USDT0 is natively bridgeable across ecosystems without relying on fragmented liquidity pools. This improves UX and opens up Moonwell to cross-chain integrations. 4. DeFi Access and Integration USDT0 is already integrated with major DeFi protocols and CEX/DEXs. Listing on Moonwell aligns with its usage as a stablecoin rail across Inkchain, Optimism, Arbitrum, and more. Resources and Socials USDT0 Website Token Documentation Twitter USDT0 Social Channels Metrics Twitter: 11.4k followers Market Risk Assessment !|624x427 Market Metrics Market Cap: $900M Minimum/Maximum Market Cap (Last 6 months): $0 (October 21st 2024) / $900M (April 22nd 2025) Circulating Supply: $899M USDT0 Maximum Supply: ∞ USDT0 30D Total Volume (CEX/DEX): $2.9B 24 Hour Trading Volume: Varies heavily, as of April 22nd, 2025 it is $215M Liquidity on Centralized Exchanges This does not apply to this token as it stands to be a multichain deploy of USDT. Liquidity on Decentralized Exchanges: Uniswap (Unichain) -2% Depth: $272,972 Aerodrome SlipStream (Optimism) -2%: $45,277 Herfindahl Index: 0.80 (on Inkchain), .80 (on Unichain) The Herfindahl Index quantifies token concentration among holders. A value of 0.80 reflects significant concentration among wallets for the USDT0 token, indicating that governance risks stemming from concentrated holdings are high. It should be noted however that Tether is a reputable company, and that the OFT borrows from Tether’s supply on ETH Mainnet, and so this may not be a completely accurate representation. Decentralization Top 10 Holders (Majority is concentrated in a Kraken-Inkchain wallet) Token Contract: 0x0200C29006150606B650577BBE7B6248F58470c1 Ownership and Administration: USDT0 operates as an Omnichain Fungible Token (OFT), leveraging LayerZero’s infrastructure. The token contracts across supported chains are controlled by Tether and its designated administrative roles, depending on the deployment context. Ownership and upgrade privileges for the token are modular and vary by deployment, enabling independent upgrades of the messaging layer and token logic. Multichain Governance Structure: Each deployment uses an upgradeable framework via LayerZero adapters and TetherTokenOFTExtension contracts On Ethereum, the USDT adapter is responsible for locking native USDT and authorizing cross-chain messages. On other chains, minting and burning of USDT0 are handled by OFT-compatible contracts controlled via administrative safes. The system allows efficient contract upgrades and emergency control without affecting interoperability. Security and Controls: All cross-chain transfers must be verified by two independent Decentralized Verification Networks (DVNs): LayerZero DVN and a USDT0-specific DVN, providing robust guarantees against message tampering or spoofing. Blacklist Functionality: USDT0 supports blacklist and freezing functionality in line with regulatory compliance tools, enabling enforcement actions if needed. Economic Risks USDT0 is a fiat-backed stablecoin and does not participate in governance voting like native protocol tokens. Therefore, it carries no governance risk (e.g., malicious voting attacks). However, standard risk controls such as supply caps, borrow limits, and oracle safeguards should be considered to minimize systemic protocol risk in extreme market scenarios. There is also some concentration risk in the current supply of USDT0 that is deployed to the Superchain; however, it is held by a reputable actor. Smart Contract Risks Codebase and Onchain Activity The USDT0 system is built on audited smart contracts maintained by Tether and the LayerZero team. Here are the available audits and bounties: OpenZeppelin, ChainSecurity, ImmuneFi Bug Bounty The OFT logic is live across multiple networks including Ethereum, Optimism, Ink, Arbitrum, Berachain, and others. Source code is publicly available via GitHub repositories. Security Posture Tether maintains a robust operational and compliance infrastructure. OFT deployments use verified contracts with multisig safes and formal auditing. LayerZero messaging uses a dual-DVN configuration to ensure message validity before minting or burning USDT0 across chains Upgradability USDT0 contracts are upgradeable to support evolving chain integrations and compliance features. Upgrades are secured through governance processes managed by Tether and related multisigs. Oracle Assessment Chainlink oracle price feed address: 0xECef79E109e997bCA29c1c0897ec9d7b03647F5E (USDT-USD Oracle OP Mainnet) Is the asset a wrapped, staked, or synthetic version of a different underlying asset? If yes, and the Chainlink price feed provides price data for the underlying asset rather than the wrapped, staked, or synthetic version, please provide the following information: How is the asset wrapped, staked, or otherwise created? * The asset is wrapped, USDT0 is an OFT that represents USDT. Users/Integrators deposit USDT to the OAdaptorUpgradeable proxy in a lock-and-mint model on Ethereum mainnet. After dual verification by the L0 DVN and the Tether DVN (0x3b0531eB02aB4Ad72E7a531180bEEf9493A00dD2) an equal amount of USDT0 is minted on the destination chain. How can you verify that the amount of the asset that is minted is never more than the amount of the underlying asset that is locked, staked, or used as collateral * Read the ERC20.balanceOf(OAdapterUpgradeable) for USDT on Ethereum (shows the locked amount of USDT). * Sum totalSupply() of USDT0 contracts across all chains (LayerZeroScan has an API) * L0 security stack refuses messages that violate collateral > supply; both DVNs must sign mint/burn messages. Is there a way to verify proof of reserves (PoR) on the same network as the market? * Chaos Labs' "Proof Oracle" keeps track of the proof of reserves for USDT0 (though this is not live yet). What specific events might cause the price to “depeg” or no longer be the same as the price of the underlying asset? * Underlying risk: USDT itself de-pegs. * Bridge logic failure: bug or upgrade mishap in OAdapterUpgradeable emits excess mint. * Oracle/DVN compromise: both DVNs fail or are captured, allowing fake messages. * Proof-of-Reserve downtime: traders apply a discount until transparency is restored. * Regulatory freeze: court order pauses the Ethereum reserve contract, blocking redemptions. * Extreme thin-liquidity on a newly added chain: temporary ±1-2 % drift until arbitrage. Swap Size Requirement USDT0 meets the new MALF criterion requiring that a $500,000 swap incur no more than a 25% price impact across decentralized exchanges and aggregators with some considerations. The token currently holds meaningful liquidity across platforms such as Uniswap (on Unichain) and Aerodrome (on Optimism). As of April 2025, the -2% depth on Uniswap for USDT0 is approximately $272,972, and $45,277 on Aerodrome. A swap of $500,000 on Uniswap on Unichain incurs a .24% price impact, which shows that it is substantially liquid on prospective chains. However, currently, on OP Mainnet, USDT0 is illiquid and sustains a high price impact upon trade, though this is expected to change rapidly. Liquidity Threshold USDT0 satisfies the minimum liquidity threshold of $2 million in total value locked (TVL) across decentralized exchanges. The asset benefits from its native OFT architecture, which allows deployment of USDT from ETH Mainnet and deep integration across a variety of onchain ecosystems. Below is an image of pool TVL just for Unichain, and it far surpasses the benchmark. !|289x287 Commercial Viability USDT0 is projected to generate protocol revenue through its high demand as a stablecoin collateral and borrowable asset. Historical utilization data from Moonwell shows that stablecoins like USDC and USDT consistently maintain utilization rates between 65–90%. Using a conservative 85% utilization rate for USDT0, combined with a 10% reserve factor and expected total supplied of $10 million, the protocol could generate approximately $7,000/month in revenue. In case this is not a satisfying answer, here’s some back-of-napkin math: |Metric|Value|Explanation| | --- | --- | --- | |Total Supplied|$10,000,000|Chose a random middle ground on the supply between EURC (5M) and USDC (57M)| |Utilization Rate|85%|Based on historical rates for stablecoins on Moonwell| |Total Borrowed|$8,500,000|85% of supplied USDT0| |Avg. Borrow Interest Rate (APY)|10%|Higher rate due to proximity to kink point in IR curve| |Annual Interest Paid|$850,000|$8.5M × 10%| |Reserve Factor|10%|Per standard for USDC, USDT, USDS​| |Annual Protocol Revenue|$85,000|$850,000 × 10%| |Monthly Protocol Revenue|$7,083|$850,000 ÷ 12| Proposal Author Information Name: 0xMims Telegram): Mims0x LinkedIn Twitter: 0xMims Delegate Address: 0x657D07095b082BB71ebD93F549f407A97f49094F Relationship with token: I am a Moonwell community member and delegate. Conclusion The listing of USDT0 as a core asset on Moonwell unlocks significant potential for protocol growth, liquidity expansion, and user adoption. As a stable, interoperable, and compliance-ready asset, USDT0 provides users with cross-chain lending functionality while aligning with Moonwell’s mission of simple, secure, and accessible DeFi. With its established integrations, large trading volume, and widespread adoption, USDT0 is well-positioned to become a foundational stablecoin for Moonwell lending markets. I invite the community to engage in discussion and help shape this listing proposal to best serve the protocol’s long-term vision.

Summary This proposal refines the Moonwell Asset Listing Framework (MALF) review process to better balance market accessibility with long-term sustainability. The proposed update aims to align listing standards with practical risk considerations and economic viability. Background: To strengthen the asset listing framework while maintaining accessibility for new listings, we propose the following updates to the Moonwell Asset Listing Framework (MALF): Swap Size Requirement: The asset must require a $500K swap to incur a 25% price impact or less across decentralized exchanges and / or aggregator. Liquidity Threshold: The asset must maintain at least $2M in total TVL across one or more DEX pools. Commercial Viability: Proposed asset markets should demonstrate a clear potential to generate at least $1,000 per month in protocol revenue. * This threshold is informed by revenue data from successful markets currently active on OP Mainnet: * USDC: approximately $10,000/month * ETH: approximately $5,000/month * VELO: approximately $5,000/month Established markets on OP Mainnet serve as practical benchmarks, helping to set realistic revenue expectations and effectively assess potential market performance. Voting Options Yes: Approve adding the outlined Moonwell Asset Listing Framework (MALF) review requirements. No: Reject the proposed change and maintain the current Moonwell Asset Listing Framework (MALF) review requirements. Conclusion Approving the additional review requirements to the Moonwell Asset Listing Framework (MALF) establishes clearer liquidity benchmarks and commercial viability for projects seeking listings on Moonwell that justify the engineering and operational costs associated with activating and maintaining new markets.

Summary This proposal seeks to update the Moonwell Security Council roster by replacing Elliot Friedman (Solidity Labs) with Ana Bittencourt, a full-time Solidity Engineer currently working with Lunar Labs. Background The Moonwell Security Council was initially ratified to enhance security and operational integrity across the Moonwell protocol, DAO, and Foundation. Elliot Friedman was originally approved as part of the initial council, representing Solidity Labs. Given Elliot Friedman's departure from active involvement with the Moonwell protocol and Ana Bittencourt’s significant contributions since July 2024, including her transition from Solidity Labs to Lunar Labs, we propose updating the Security Council to maintain an active, engaged, and technically proficient roster. Moonwell Security Council elections will take place onchain next month per the Moonwell DAO Constitution. However, given the importance of maintaining a fully operational 3/5 multisig in the interim, the current Security Council recommends replacing Elliot now to avoid any security or governance risks. Upon approval, the updated Security Council will consist of the following five members: Ana Bittencourt (Lunar Labs) Gauntlet Luke Youngblood (Lunar Labs) X0s0l Coolhorsegirl About Ana Bittencourt Solidity engineer working full-time on Moonwell since July 2024 Originally part of Solidity Labs, has since transitioned to Lunar Labs and is working full time on Moonwell Extensive expertise in smart contract development, protocol security, and deep familiarity with Moonwell’s codebase and operations Proven track record of contribution, trustworthiness, and commitment to Moonwell’s growth and security Proposal Implementation Remove Elliot Friedman from the Security Council and associated multisig roles. Appoint Ana Bittencourt as a Security Council member, adding her as a signer on mission-critical multisigs: Governance Guardian multisigs: 0x446342AF4F3bCD374276891C6bb3411bf2F8779E 0x5402447a0db03EeE98c98b924F7d346bd19cdD17 0x5DeD9d1025a158554Ab19540Ae83182d890Bb8DB Pause Guardian multisigs: 0xB9d4acf113a423Bc4A64110B8738a52E51C2AB38 0x82Aa6030973B61AcED7c978ee0e73A83136b02a9 0xf4643e5653a07c9aacb031dD99E304175afFB6aF Voting Options Yes: Approve the replacement of Elliot Friedman with Ana Bittencourt on the Moonwell Security Council and all related multisigs. No: Reject the proposed change and maintain the current Security Council roster. Conclusion Approving Ana Bittencourt as a member of the Moonwell Security Council means continued robust security oversight, active participation, and alignment with Moonwell’s mission for sustainable decentralization and ecosystem integrity.

Overview This proposal seeks to list the AVAIL token as a new market on Moonwell’s Base deployment. AVAIL is the utility token of the Avail Network, a modular data availability layer founded by former Polygon co-founder Anurag Arjun and ex-research lead at Polygon Prabal Banerjee. General Information Token Asset Name: AVAIL (ERC-20 on Base bridged via Wormhole from Ethereum) Project Description: Avail is a modular data availability layer that launched its mainnet in July 2024. The project has garnered significant traction with over 60 chains developing integrations, 110 partners including prominent projects like Lens Protocol, Sophon and Symbiotic etc. Benefits to Moonwell Community: 1. Expands Moonwell’s asset offerings to include a fundamental infrastructure token in the modular blockchain space. 2 Provides yield opportunities for AVAIL holders on Base 3. Increases TVL potential through integration with a rapidly growing ecosystem 4. Attracts users from Avail’s existing ecosystem to Moonwell Resources: GitHub Twitter Website Documentation Social Channel Metrics: Twitter: 330k+ followers Discord: 195k+ members Telegram: 140k+ members Contact Information: Please contact @ri5hitripathi on Twitter Author’s Relationship to Token: The proposal author is a contributor to Avail Ecosystem. Market Risk Assessment !availassessmarketnew.png Market Information: Token Address on Base: 0xd89d90d26b48940fa8f58385fe84625d468e057a Market Cap: $204,144,339.00 Circulating Supply: 1,952,453,966 AVAIL, Source Total Supply: 10,274,953,966 AVAIL, Source 24h Trading Volume: $3.2M Volatility (30-day): 20.38% Liquidity Information: Aerodrome (Base): Bridged via Wormhole (From Ethereum to Base) AVAIL-USDC Pool: $2.3M TVL 24h Volume: ~$350K Slippage (100k): 0.85% Uniswap V3 (Ethereum): Bridged via Avail Native Bridge (From Avail Network to Ethereum) Combined Pools: $4.2M TVL 24h Volume: $100k Slippage (100k): 0.62% Onchain Activity Metrics: On Avail Network: Accounts: 283,774 Transactions : 1,768,865 Token transfers: 573,631 On Ethereum Network: Total holders: 2,423 Supply : 73,118,687.95 AVAIL Transfers: 34,216 On Base Network: Total holders: 1,249 Supply: 29,197,768.16 AVAIL Decentralization Assessment (Avail Network): Herfindahl Index (HHI): 0.1518 Gini Coefficient: 0.9973 Emission Schedule on Avail Network: Inflation is 5% per annum Total Supply (at genesis): 10,000,000,000 (10 billion) AVAIL Circulating Supply (at genesis): 16.775% of total supply Top Token Holders (Avail Network): Un-Locked Public Allocation: 6% Locked Investors: 3% Locked Ecosystem Development: 24% Contract Controls: Pausable: Yes, (4/7 Multisig controlled). The token contract has a pause mechanism in the event of an active vulnerability in the token or native bridge (Avail-Ethereum) code, to mitigate risk/exploitation. Blacklist: No Upgradeability: No Timelock: 48 hours on admin functions Smart Contract Risk Assessment Security Information: Audited by Halborn , Verichains, Sherlock Security and others. Audits: Audit Report for Avail No critical or major issues found Active bug bounty program on Immunefi Emergency Response Time: <1 hour GitHub: Avail · GitHub Oracle Assessment Base Network Price Feed: Chainlink Oracle Address Confirmation: Address : 0x947eD6A3664fCE27a365b720286c01074d3782E0 Proposed Initial Parameters We propose the following initial conservative parameters, subject to Gauntlet’s risk assessment: Collateral Factor: 0% (initially, as per framework recommendations) Reserve Factor: 25% (standard for non-stablecoin assets) Supply Cap: TBD based on Gauntlet’s assessment Borrow Cap: TBD based on Gauntlet’s assessment Conclusion: Listing AVAIL on Moonwell’s Base deployment offers a strategic opportunity to integrate a foundational infrastructure asset powering modular blockchain adoption. Adding AVAIL taps into growing demand for modular blockchain, and creating new yield opportunities on MoonWell’s base lending hub for users. I am opening this proposal to the community to review, discuss, and provide feedback on this proposal to ensure its success and alignment with our shared vision for a secure and decentralized onchain financial future.

I am pleased to propose the addition of MORPHO, the governance token of Morpho, to Moonwell’s suite of core lending markets on Base. The Base ecosystem is host to some of the best protocols in the industry, and as such it is desirable to list the best Base native assets to capitalize on opportunities in the ecosystem. MORPHO is a decentralized asset specific to the Morpho protocol, differentiated through its permissionless isolated market creation offered by its risk management partners. Listing MORPHO will enable users to participate in governance while utilizing the token for lending and borrowing within the Moonwell ecosystem. Its integration will strengthen liquidity, provide additional lending opportunities, and improve capital efficiency. Benefits to the Moonwell Community: 1. Yield-Generating Asset: MORPHO holders can earn additional rewards by supplying the token to Moonwell’s lending markets, benefiting from optimized interest rates and capital-efficient lending mechanics. 2. Enhanced Liquidity: Listing MORPHO will diversify and strengthen Moonwell’s lending and borrowing markets, offering users more options for collateral, borrowing, and liquidity provision. 3. Non-Custodial & Decentralized: MORPHO operates on permissionless, upgradeable smart contracts, aligning with Moonwell’s focus on decentralization, transparency, and security. Token: MORPHO Resources and Socials Morpho Website Token Documentation Morpho Twitter Morpho Governance Forum Morpho Social Channels Metrics Twitter: 60k followers Market Risk Assessment !marketassessmorpho.png Market Metrics Market Cap: $416M Minimum/Maximum Market Cap (Last 6 months): $25M (November 25th, 2024) / $416M (February 24th, 2025) Circulating Supply (on Base): 224M MORPHO Maximum Supply: 1B MORPHO 30D Total Volume (CEX/DEX): $989M 24 Hour Trading Volume: $30M (21M on CEX, 8M on DEX) Liquidity on Decentralized Exchanges: Uniswap V3 MORPHO/WETH (Ethereum) -2% Depth: $123,643 Uniswap V3 MORPHO/WETH (Ethereum) -2% Depth: $28,683 Uniswap V3 MORPHO/WETH (Base) -2% Depth: $415,720 Herfindahl Index: The Herfindahl-Hirschman Index (HHI) measures token concentration among holders, with higher values indicating greater centralization. Currently, the HHI for this token on the Base network stands at .406, a level typically considered somewhat centralized. However, this can be reasonably attributed to the majority of the token's supply being held within the Morpho DAO, morpho.eth address, and so in reality the HHI is likely lower. Decentralization Top 10 Holders Token Contract: 0xBAa5CC21fd487B8Fcc2F632f3F4E8D37262a0842 Privileged Roles in Token Contract: The Morpho token does not have role-based permission functions according to the token’s Github repository (Source)[https://github.com/morpho-org/morpho-token]. Blacklist Functionality: The MORPHO token has no blacklist function. Token Standard: ERC20 Smart Contract Risks Codebase and onchain activity: * Github Repo * Total transactions: 1,172,361 * Age of token in days: 98 days (on Base) Security Posture: Morpho has had extensive audits from parties like Cantina, Spearbit, and Open Zeppelin. A list of audits may be found here. The 2 ongoing bug bounties for Morpho may be found here. Upgradability: The Morpho token according to its github repository is upgradable, and can support onchain delegation. Furthermore, it also has a wrapper contract integrated to the migration of assets from the old MORPHO token. Morpho governance operates through a weighted voting system where MORPHO token holders and delegators vote on proposals, with voting power proportional to their token holdings. MORPHO token is upgradeable and can be modified through the governance process, and once passing the DAO multisig would need to upgrade in response. Source Oracle Assessment Oracle Price Feed Addresses: * MORPHO-USD, Base Feed address: 0xe95e258bb6615d47515Fc849f8542dA651f12bF6 Proposal Author Information Name: 0xMims Telegram: Mims0x LinkedIn Twitter: 0xMims Delegate Address: 0x657D07095b082BB71ebD93F549f407A97f49094F Relationship with Token: I am a Moonwell community member and delegate. I bear no relationship with the MORPHO token on a personal or professional level. Conclusion In conclusion, the MORPHO token is an opportunity for Moonwell to double down on a proven partner, and capitalize on its growing capabilities. I am opening this proposal to the community to review, discuss, and provide feedback on this proposal to ensure its success and alignment with our shared vision for a secure and decentralized onchain financial future.

gm Moonwell Community 🌜🌎🌛 I'm pleased to propose integrating IDRX, the Indonesian Rupiah stablecoin, into the Moonwell ecosystem. This initiative aims to enhance market utility, drive ecosystem growth, and provide users with a decentralized, stable asset. Additionally, it will expand collateral options, improve liquidity, and increase user engagement within the Moonwell Protocol. General Information Token Asset Name: IDRX $IDRX Project and Token Description: IDRX is a stable token pegged to the value of the Indonesian Rupiah (IDR). It is designed for rapid, global transactions and 24/7 access to financial markets. IDRX is a regulated digital asset that offers seamless conversions and can be redeemed at a fixed rate for the Indonesian Rupiah. Benefits to the Moonwell Community 1. Increased Liquidity and TVL (Total Value Locked) 2. Diversification of Collateral and Borrow Assets 3. Enhanced Borrowing and Lending Opportunities 4. Attracting New Users and Community Growth Especially from Indonesia 5. Another Revenue Generation for Moonwell Resources Website X Whitepaper Documentation Contact information: 0xwildan Author's relationship: The proposal author is a contributor in IDRX Social Channel Metrics Followers: 998 Engagement Rate: 4.2% Market Risk Assessment Market Cap: $534,108 Total Supply: 8,798,339,880 IDRX Market Listing Indodax: $245,014.81 Polygon Uniswap V3: $123,47K BNB Chain PancakeSwap V3: $63,143K Base Uniswap V2: $54,463 Base Aerodrome V2: $41,952 Solana Raydium: $2,565 Lisk Velodrome V2: 2,004 Gini Coefficient and Herfindahl Index Base: Gini: 0.9768900449998265 Herfindahl: 0.3721919612633254 Lisk: Gini: 0.8624228647062959 Herfindahl: 0.7290023440469882 BNB Smart Chain: Gini: 0.9703215119328196 Herfindahl: 0.30888051286296875 Polygon: Gini: 0.9998143140771992 Herfindahl: 0.4644689606421146 Decentralization Top 10 Holders: Polygon 1. 0x91Dca37856240E5e1906222ec79278b16420Dc92 (Indodax): 60.5261% 2. 0xe818c9573dD90766C1263cF6330aB1ac2476b2b9 (Pool): 31.6572% 3. 0x3C02290922a3618A4646E3BbCa65853eA45FE7C6: 2.8428% 4. 0x0e7fd1205A7220c34481B522f21c3De4945b0717 (Indodax Hot Wallet): 2.5578% 5. 0x081C71ef74D5fA52472cCa3D4940F41CEF3AF94C: 1.4984% 6. 0xf80fdF246928B7862B23e094b3a14C4E36eE117E (Contract): 0.1227% 7. 0xB0e497f7525A83c3c02f2125e9029731FCe93E15: 0.1221% 8. 0xdEE0D6Da6eff627C0A8324eeD0eEba7336711001: 0.0591% 9. 0xd6911F0298Ed5B52bBE6BeE4ACc0BE43Eab37108: 0.0584% 10. 0x1271CAba4bf23f8Fb31F97448605d65EE302CA51: 0.0373% BNB Chain 1. 0x2ebBe1681d914369a0dFcff42213004844472a3F (Wagon Network Lending): 27.2547% 2. 0x9a5cF6De1d8BDBCa49e8e786413F6949fCd70d7B (Pool): 26.2773% 3. 0xaBa3002AB1597433bA79aBc48eeAd54DC10A45F2 (Indodax): 25.0744% 4. 0x91Dca37856240E5e1906222ec79278b16420Dc92 (Indodax): 11.7770% 5. 0xEe9f10f5b66eA1b1d700bbA96CA12Aee832A5A02 (Nusa Finance Contract): 5.4700% 6. 0xFCDD28163aC6fE6BDe0C508CcB2b62A86a26CD25 (Team Multisig): 3.5105% 7. 0xdEE0D6Da6eff627C0A8324eeD0eEba7336711001: 0.1529% 8. 0xe075f462f1101AD30195a3C80c0eb816A2470b09: 0.1022% 9. 0x95f9ea97D15d6f114BFA6E7AE9Ba4ab8EcA03F97: 0.0454% 10. 0x3a3D7dfc03FcCDd46f933160b1F05279661745ef: 0.0341% Solana 1. 5xKBPD7rJWtRkndqdBvZKfrPUXMzULeDk2VeQRnyyWas (Pool): 85.26% 2. 3bPXLywWynmAWkpWJ7bfHCRHKheKp97KqqFpPJaz3MKK: 12.10% 3. 6nN3c8UoocxtdQHW2GN9Sf7PLy3ASb87cPfAcHGJGKAs: 0.87% 4. 2v2SUT9mhnoRTWagUx1Tyk3STbv2uuSrtnSUyHdtUxWA: 0.27% 5. BXcnsEUwD8FEorFWmhNNo9Vi8whLmtDEG6haBZcxfpJq: 0.26% 6. 5uH1Nn8XPcxWymGqoCNsH5RHumixDsvtQPYNqT5JZK7j: 0.26% 7. uPvgY8Br9bTgPeKdcS8EYcnKB3YXMdtfp7oT1aG5Dhj: 0.12% 8. 25mYnjJ2MXHZH6NvTTdA63JvjgRVcuiaj6MRiEQNs1Dq: 0.09% 9. DAX6ZJDsStbA9nuuCoWsPCa4E7yKNzRdh96Yo4pxvhY5: 0.09% 10. 7NghGj2TVtdtUJMWz4FDsznaqBt2S8LGm7go7oMRsLyF: 0.08% Base 1. 0xE22C335Bc83f4013930768c450a5E50318DEe2DB (Aerodrome Pool): 47.7451% 2. 0xbf416c248648Ea19dC3ED09fee00383a882bC7E0 (Uniswap Pool): 36.5270% 3. 0x91Dca37856240E5e1906222ec79278b16420Dc92: 8.7771% 4. 0xf80fdF246928B7862B23e094b3a14C4E36eE117E (Team Multisig): 3.7249% 5. 0x3C02290922a3618A4646E3BbCa65853eA45FE7C6: 1.9103% 6. 0x22c9eC74654841AA15bE0E0Ff7bdD7754BCeE735: 0.4158% 7. 0x7693B95d831417266e61BBD6ad71bdA375df889b: 0.2077% 8. 0xdEE0D6Da6eff627C0A8324eeD0eEba7336711001: 0.1636% 9. 0x36881AFE45DaB34d0C6Ad703Afe28D36D06eD46A: 0.1167% 10. 0x8BD53F7fF88fD895D3686fe6369a07432822d30F: 0.0669% Lisk 1. 0x772D6400d814588e33A6BFb344f8e47C0c4684A (Pool): 84.05% 2. 0x22c9eC74654841AA15bE0E0Ff7bdD7754BCeE735: 13.72% 3. 0x1095bBe769fDab716A823d0f7149CAD713d20A13: 1.45% 4. 0x8BD53F7fF88fD895D3686fe6369a07432822d30F: 0.27% 5. 0x46d58b6230bE4Af3dFa7883Fffd6a17bA1Db2965: 0.22% 6. 0x638c706e6d711ABCEf33E38C771f4814F2053d17: 0.15% 7. 0x638c706e6d711ABCEf33E38C771f4814F2053d17: 0.08% 8. 0x58b20e33b461A1d93ecAD422aC0a3419c339D303: 0.02% 9. 0x4313816F7Bfcff384053C70365eb6F3a4dbDD39f: 0.01% 10. 0xAE80AC646393cef5983ECac2D5B28d3040b3a82f: 0.01% Privileged Roles Role: DEFAULT_ADMIN 0xcaC3cf6b226317D91c2e72ac7193a83C34728b2C Owner 0xf80fdF246928B7862B23e094b3a14C4E36eE117E Multisig 1 Role: MINTER 0xcaC3cf6b226317D91c2e72ac7193a83C34728b2C Owner (will be revoked) 0xf80fdF246928B7862B23e094b3a14C4E36eE117E Multisig 1 0x942ca56d502c08E5F2d5dE7097d4fa667FBC6c5f Multisig 2 0x3274da26046eED0D315a81050507FF07D3993eb4 Multisig 3 Role: PAUSER 0xcaC3cf6b226317D91c2e72ac7193a83C34728b2C Owner Role: UPGRADER 0xcaC3cf6b226317D91c2e72ac7193a83C34728b2C Owner (will be revoked) 0x58AA9720f456667c97093AAF87623d656f1eE6Fa Timelock Role: BLACKLIST 0xcaC3cf6b226317D91c2e72ac7193a83C34728b2C Owner Role: PLATFORMFEESETTER 0x58AA9720f456667c97093AAF87623d656f1eE6Fa Timelock 0xcaC3cf6b226317D91c2e72ac7193a83C34728b2C Owner (will be revoked) Token Pausable: Yes Blacklist Feature: Yes Codebase and On-chain Activity Repository: IDRX's Github Verified Contracts BNB Chain Polygon Solana Base Lisk Token Age BNB: 573 days Polygon 625 days Solana: 173 days Base: 100 days Lisk: 93 days Number of Transaction BNB: 2134 transactions Polygon 26755 transactions Solana: 1610 transactions Base: 966 transactions Lisk: 108 transactions Audits Security assessment Proof of Reserve Bug Bounty Program: No Emergency Contract: Nathanael Monday to Friday (09:00-18:00) UTC +7 Security and Verification: Hardhat Monitoring Service Internal Telegram Bot Internal Dashboard Alchemy Dashboard Upgradability Upgradeable: Yes Authorization: Wallet with the UPGRADER Role. Right now, 2 wallets have this role (Owner and Timelock). We will revoke the UPGRADER role for owner sometime in the future. Time to Upgrade: After the UPGRADER Role is revoked from the owner wallet, there is a 2 days timelocked delay for an upgrade. Upgradeable Components: We use OpenZeppelin’s UUPSUpgradeable proxy contract pattern. Upgradability Design: Our engineering team manages the upgrade and the upgrade is done through a timelock contract. Emit Event: Yes Oracle Assessment Chainlink Oracle: We don't have any Wrapped/Staked/Synthetic Asset with Chainlink Pricefeed: Not applicable How IDRX is Created 1. Users deposit IDR to IDRX’s treasury bank account 2. IDRX validates the transaction 3. If valid, we mint the $IDRX. Underlying Asset: Fiat on Treasury Bank Account How we verify IDRX is always more than the underlying asset: IDRX is always validates incoming transactions to our treasury and we conduct a quarter How to verify PoR: We conduct a proof-of-reserve assessment every quarter that you can read here Volatility In the last several months, the price of IDRX has fluctuated between 0.975 IDR and 1.040 IDR, mainly because of the influence of the USD on the Rupiah. !volatility.png Event That Can Trigger Depeg: In the open market, depeg happens when there is a high-demand transaction. But we always guarantee users can mint and redeem IDRX 1:1 to IDR. Conclusion Integrating IDRX into the Moonwell ecosystem presents a strategic opportunity to enhance liquidity, diversify collateral options, and attract a broader user base, particularly from Indonesia. With its strong regulatory framework, transparent reserves, and robust market presence, IDRX is well-positioned to contribute to Moonwell’s growth while providing users with a stable and efficient asset for borrowing and lending. By adding IDRX, Moonwell can expand its market reach, drive higher engagement, and unlock new revenue streams, ultimately strengthening the protocol’s position as a leading decentralized lending platform. We look forward to collaborating with the Moonwell community to make this integration a success. The IDRX team is available to provide any additional information needed. We welcome community discussion and feedback in the discussion link to make sure the proposal aligns with Moonwell’s vision. Voting For: Integrate IDRX to Moonwell ecosystem on Base Against: Do not integrate IDRX Abstain: Decline to give a voice either for or against the integration of IDRX

Hi Moonwell community, We are pleased to propose adding Venice.ai’s VVV token to Moonwell. As a native Base asset, VVV powers private and uncensored access to open-source artificial intelligence, with VVV stakers (users, developers, agents) receiving ongoing access to Venice’s inference capacity in proportion to their stake, while earning emissions-based yield. Overview Venice offers an alternative to mainstream AI platforms by providing private, uncensored access to powerful open-source models. Unlike centralized platforms that collect,monitor, and monetize user data, Venice processes all requests locally in users’ browsers. The VVV token enables users and agents to obtain persistent AI inference through the Venice API without per-request fees, reducing costs and friction for AI text, image, and code generation at scale. Key benefits for stakers: Proportional access to Venice’s growing inference capacity Zero-cost API usage based on stake size Emissions-based staking yield No data collection or monitoring Since launch we’ve seen a surge in increased uptake in demand for the Venice API via VVV staking, measured in Venice Compute Units (VCU). VCU measures a staker’s daily share in Venice’s total inference capacity, and can be used to access powerful models such as DeepSeek R1 671B and Llama 3.3 70B via the Venice API. !vcu.png General Information Token Asset Name Venice Token (VVV) Description VVV is Venice’s utility token launched January 27, 2025. VVV underpins Venice’s privacy-first AI API infrastructure, providing stakers with ongoing access to inference capacity proportional to their stake. Stakers also earn emissions-based yield. Benefits to Moonwell Community First privacy-focused onchain AI infrastructure token Venice brings unique value to Moonwell users through its strategic position in powering onchain, private AI infrastructure, through its VVV token. Utility-backed value The token’s value is tied to Venice’s API capacity and infrastructure usage by users and agents, creating a sustainable model where demand increases with AI sector growth. Alignment with crypto values Venice’s position in the exploding AI infrastructure sector, combined with its focus on privacy and permissionless access, aligns with Moonwell’s values. Dedicated to Base VVV launched natively on Base with the largest ever airdrop on the Base blockchain, and was featured in Base’s partner communications as a flagship Base protocol token. VVV achieved a rare and elusive Coinbase Day 1 listing. Resources Website: venice.ai Documentation: docs.venice.ai Github: github.com/veniceai Discord: discord.gg/askvenice Twitter: x.com/AskVenice Market Risk Assessment Market Metrics Market cap (at time of posting): $148.1M Total supply: 100.5 million VVV Annual emission: 14% in year 1 and decreasing after Distribution: 50M VVV (50%) - Airdrop to Venice users & AI community 35M VVV (35%) - Venice.ai company 10M VVV (10%) - Team (25% upfront, 75% vesting over 24 months) 5M VVV (5%) - Liquidity deployment Liquidity Exchanges: Aerodrome, Uniswap, Coinbase, Kucoin, Gate.io, Aerodrome DEX Liquidity Data: Total liquidity: $10.2M -2% Depth: $206,090 A24h Trading Volume: $11.3M 30D Total Volume: $339M (extrapolated) Social Metrics Twitter: 45K Discord: 3,426 Decentralization Token Contract Address: 0xacfE6019Ed1A7Dc6f7B508C02d1b04ec88cC21bf Standard: ERC20 Age: Deployed January 27, 2025 Privileged Roles: The token contract is non-upgradeable Staking contract has mint function as part of staking emissions curve Pause/Blacklist Staking rewards can be paused Distribution Analysis Top 10 Token Holders: Basescan holders list Gini Coefficient: .996 Herfindahl Index: .134 Codebase & Onchain Activity Github Repository: github.com/veniceai Contract Verification: Contract verified on Basescan Transaction Count: 1,379,534 Contract Age: 9 days since deployment Security Auditor: Trust Security Audit Reports: https://www.trust-security.xyz/venice-ai-audit Bug Bounty: Yes Emergency Contacts: mail@venice.ai Oracle Assessment Price Feeds Chainlink oracle in development for VVV-USD on Base Standard deviation and heartbeat parameters Native token (not wrapped/synthetic) No underlying price correlation concerns Conclusion The combination of Venice’s privacy-first AI infrastructure, uncensored AI access, and Moonwell’s robust lending infrastructure creates new opportunities for users to participate in the growing onchain AI economy. We look forward to community discussion and Gauntlet’s risk analysis to ensure a successful integration that benefits both protocols. Voting Yay: Add VVV market to Moonwell Base Nay: Do not add VVV market The Venice team is available to provide any additional information or clarification needed. We welcome community discussion and feedback to ensure this proposal aligns with Moonwell’s commitment to security and decentralized finance.

Author: Dave Connor, API3 Related Discussions: https://forum.moonwell.fi/t/switch-moonwell-moonbeams-markets-to-using-api3-s-oev-enabled-data-feeds/1409 https://www.youtube.com/watch?v=UIqNapXXrqA&t=525s Submission Date: 13/02/25 Summary Moonwell is one of the highest revenue generating protocols in DeFi (https://defillama.com/fees?category=Lending), currently sitting at 11th over the last year with over $1.2m generated. The yield that Moonwell’s Moonbeam deployment generates could be significantly improved by switching to using API3’s dAPIs (data feeds) for all markets. This proposal is to switch Moonwell’s oracle on Moonbeam from Chainlink to API3. API3’s OEV data feeds have been used in production without problems for months by many lending markets, including Compound V2 forks (like Moonwell) and have just been integrated by Compound itself. API3’s OEV feeds can be switched to easily from contracts expecting a “push” oracle, like Chainlink, without the need to change any code, reducing risks. This proposal is intended to act as a proof of concept for Moonwell using an alternative oracle in a comparatively low TVL deployment, and demonstrate the value that OEV can bring. Similarly, demonstrating the value and reliability of API3’s feeds will open up possibilities for Moonwell to deploy on chains where existing oracle infrastructure partners are unavailable. This proposal will direct the revenue from OEV to the addReserves function of the GLMR core market on Moonbeam. There are many alternatives that could be explored in future proposals, such reducing effective liquidation penalties, that would make interesting community discussions. API3 will also develop a Dune dashboard to demonstrate the value that OEV is bringing to Moonwell in an easily accessible way for Moonwell users. OEV solutions introduce complexities so this proposal will be as detailed as possible. Where possible, further resources are linked to, but questions are encouraged and welcomed where something is insufficiently well explained Overview To ensure any positions eligible for liquidation are promptly liquidated, reducing the risk of protocol level bad debt, Moonwell pays an incentive to whoever is able to trigger them fastest (“searchers”). This process is open to everyone. Triggering a successful liquidation pays 7% of the liquidated position to whichever searcher was able to trigger it. This setup for decentralising liquidations is common in defi, with almost every other lending market paying similar incentives to ensure reliable triggering of liquidations. As this is effectively a source of free money, it tends to be incredibly competitive. On various chains it is possible for searchers to bid for priority over other searchers. There are multiple mechanisms that allow searchers to compete for these liquidations - on some chains it takes the form of third-party auctions, and on others it becomes primarily latency-driven. Quite often they are willing to pay a large percentage of what they expect to make as a reward for this - because making some money, even a small amount, is better than none if they are outbid. Where the ability to bid for priority exists, searchers are happy with a much smaller amount in exchange for triggering liquidations than lending markets typically pay. From the point of view of the lending market, this can be considered wasted liquidity, as it is effectively not needed, and does not end up with whoever triggered the liquidation, who was happy receiving less. Moonwell is a Compound V2 fork. Lending markets based on Compound V2 are built expecting “push” oracles. A push oracle can be described as an oracle that keeps an on-chain reference price updated, so that it can be used at any time by smart contracts on the same chain. Price updates by push oracles like Chainlink and API3 are pushed on chain based on two criteria - time and deviation. Time is a set frequency of update, regardless of price movement. Deviation based updates allow the on chain price to vary by up to a set percentage of the real time price before an update is triggered. The actual data providers update their prices offchain at a far more granular level. When a Searcher sees one of these more current prices offchain that would trigger a liquidation onchain, they can bid for the right to pull that more current price on chain and to bundle a liquidation with it thus ensuring they get the associated rewards. These additional updates simply provide redundancy and granularity to the existing push updates. API3’s OEV data feeds allow searchers to trigger additional data feed updates which in effect gives them a “fast lane” for liquidations, and gives those willing to pay priority over the other people competing. The searchers are unable to change data values, and can only trigger an earlier update (from the same data providers) than would otherwise occur based on time or deviation alone. There is more information about how this works exactly here, but a brief summary is: Searchers monitor positions on lending markets that can be liquidated at certain price points Searchers also monitor the aggregated prices from API3’s Data providers. When the providers show a price offchain that would trigger a liquidation, searchers are able to bid for the right to trigger an extra update. The winning bid goes to API3, who split this with the dapp that the searchers trigger the update for The winning searcher gets a signed transaction that only they can use, which triggers a data feed update for a specific pair, eg ETH/USD The searcher then bundles this price update transaction in a multicall with the liquidation transaction. As the update is signed, only the winning bidder can issue the update, giving them priority to trigger the liquidation. API3’s dAPIs have a 15 second delay for deviation based updates to allow winning searchers time to update the feed. This ensures that searchers know they’re able to use the update to trigger the liquidation, which optimises the value they’re willing to bid. API3 then gives 80% of these bid proceeds back to the dapp, and retains 20% to split with data providers. It can be expected that competition between searchers to win these auctions will have similar effects as the ability to bid for priority on mainnet had, and trend towards the total value of the liquidation incentive. For Moonwell, users pay a 10% penalty when they are liquidated, with 3% going into a safety reserve to guard against bad debt. Fully using API3’s OEV feeds would mean that up to 5.6% (80% of 7%) of the total amount liquidated would be returned to Moonwell. All of API3’s feeds have OEV functionality built in, and have never had a misreport or downtime on any feed since inception… Large lending markets like Compound, YEI Finance, Init Capital, Silo, Mendi, Ionic and Orbit have switched over. Multiple users (YEI, Orbit, Zerolend are also Compound V2 forks, similar to Moonwell, further proving compatibility. API3 will assume the costs of operating the necessary data feeds, and of the integration itself where necessary. Redundancy vs Dependency These updates are simply more current prices from the same providers. The OEV Network serves as a layer of redundancy and ensures liquidations happen exactly when they should rather than delaying or waiting for time or deviation-based prices to hit. If the entire OEV Network went down, the regularly pushed prices would update as they currently do and Searchers participating would be able to trigger liquidations exactly as they do now, OEV just adds additional updates from the same sources and additional venues where searchers can compete. Motivation OEV represents a new source of income for Moonwell. API3’s OEV solution offers a market leading 80% of OEV back to Moonwell, in comparison to Redstone’s 50%, and has the added benefit of demonstrated production usage for many months. API3 will also develop a Dune dashboard to demonstrate the value that OEV is bringing to Moonwell in an easily accessible way for Moonwell users. Implementation API3 will ensure all feeds needed to support Moonwell on Moonbeam are provided indefinitely. Moonwell will switch from reading prices from Chainlink’s data feed to API3’s dAPIs. There is a Quantstamp audited version of the current Chainlink adapter available here. Integration is as simple as updating the oracle source with a more frequent update schedule. API3 is happy to provide all necessary technical assistance for this switch. OEV accrued will be distributed to the GLMR core market on Moonbeam’s reserves using the addReserve function. This process will be visible on chain and verifiable by Moonwell community members Voting Yay - Moonwell will switch from using Chainlink to API3 on Moonbeam for all markets. API3 will distribute 80% of the OEV proceeds to Moonwell, via the addReserves function on the GLMR core market on Moonbeam. Nay - No changes will be made

I'm excited to propose adding USDe (Ethena USD), the stablecoin from Ethena Protocol, to Moonwell's core lending markets on Base and Optimism. This move will enhance market utility, encourage ecosystem growth, and provide users with a decentralized, stable asset that aligns with our protocol's mission. General Information Token: USDe (Ethena USD) Description: USDe is the stablecoin of the Ethena Protocol, designed to maintain a soft peg to the U.S. dollar. It integrates seamlessly within the DeFi ecosystem, combining stability, flexibility, and decentralization. Key features include: Simple USDe Conversions: The USDe/USD converter allows easy and unrestricted 1:1 conversions between USD and USDe, ensuring fluid liquidity movement. Participation in Ethena Savings Rate: USDe holders can earn rewards through the Ethena Savings Rate, offering a decentralized, non-custodial savings option without losing control of their funds. Benefits to the Moonwell Community Enhanced Stablecoin Liquidity: Adding USDe will expand our stablecoin offerings, creating more lending and borrowing opportunities. This addition will make Moonwell the largest source of multiple stablecoins in the market. Increased Protocol Engagement: By integrating USDe, we can attract users from the Ethena Protocol ecosystem, including those looking to leverage the Ethena Savings Rate for stable returns. Decentralization Alignment: As a new version of traditional stablecoins, USDe represents a permissionless, non-custodial alternative that aligns with decentralized finance principles. Reduced Systemic Risk: Backed by surplus collateral and supporting secure 1:1 conversions, USDe offers a stable, reliable asset that reduces risks associated with over-leveraged or under-collateralized stablecoins. Effortless Integration: Adding USDe to Moonwell doesn't require new code development. All necessary functionalities and mechanisms are already in place within our current infrastructure, making the addition of USDe smooth and efficient. Resources and Socials Ethena Website: Ethena Website Ethena Social Channels: * Twitter: @ethenalabs 210k followers ### Market Risk Assessment Market Metrics: Market Cap: $5.8B (across all networks) Vol/Mkt Cap (24h): 1.1% Maximum Supply: Unlimited USDe 24 Hour Trading Volume: $64M Liquidity on Decentralized Exchanges: Curve (Ethereum): $20,000,000 Decentralization Token Contract: Base: 0x5d3a1Ff2b6BAb83b63cd9AD0787074081a52ef34 Optimism: 0x5d3a1Ff2b6BAb83b63cd9AD0787074081a52ef34 Blacklist Functionality: No. Token Standard: ERC-20 USDe Stablecoin Smart Contract Risks Codebase and Onchain Activity: Total Transactions: 36K on Base , 58K on Optimism Age of Token in Days: 229 days on Base and 323 days on Optimism Security Posture: https://docs.ethena.fi/resources/audits Upgradability: Is it Upgradeable: No. summary of the Ethena Protocol documentation: Key Features USDe (Synthetic Dollar): USDe maintains a soft peg to the U.S. dollar through delta-hedging mechanisms. It's designed to be censorship-resistant and fully-backed by crypto assets. sUSDe (Internet Bond): sUSDe is a reward-accruing asset derived from staked asset returns and the funding/basis spread available in perpetual and futures markets. Delta Hedging: USDe's peg stability is achieved by executing automated delta-neutral hedges with respect to the underlying backing assets. Permissionless Minting: Users can acquire USDe in external liquidity pools, and approved parties can mint and redeem USDe on-demand. Benefits Decentralization: USDe is non-custodial and permissionless, aligning with decentralized finance principles. Stability: The delta-hedging mechanism helps maintain a relatively stable value. Revenue Generation: Ethena Protocol generates revenue from staked ETH assets and the funding/basis spread from delta-hedging derivatives positions. Risks Market Conditions: The stability of USDe can be affected by market conditions and the performance of the backing assets. Counterparty Risk: While minimized, there is still some counterparty risk associated with derivatives exchanges. Oracle Assessment Oracle Price Feed Addresses: USDe-USD, Base Feed Address: 0x790181e93e9F4Eedb5b864860C12e4d2CffFe73B USDe-USD, Optimism Feed Address: 0xEEDF0B095B5dfe75F3881Cb26c19DA209A27463a Relevant Documentation: Base Optimism Tier: Low Market Risk Proposal Author Information Name: AsgardAdmin Github: https://github.com/AzgardMultiSig Delegate Address: 0xC4c1e942c6B97EE736d15E6edE71dBc323200c3d Relationship with Token: I have no personal or professional relationship with the USDe token. Conclusion Adding USDe as a core lending market will boost stablecoin utility and drive liquidity growth on Moonwell. By supporting USDe, we can offer users new financial opportunities while promoting stability and innovation within our protocol. I’m opening this proposal to the community for review, discussion, and feedback to ensure its success and alignment with our vision for a secure and decentralized onchain financial future.

Summary This proposal is a continuation of MIP-X05, and aims to further enhance governance participation and bolster Moonwell's Safety Module by directing excess protocol revenue toward staking rewards. Currently, Moonwell generates significant protocol revenue, with $386.1K in revenue and over $2.1M in fees for lenders in December 2024 alone. However, this revenue remains idle as reserves in the core markets. We would like to propose an onchain auction system where excess protocol revenue is auctioned for WELL tokens, which are then allocated to the Safety Module Ecosystem Reserve. This approach will: Increase staking rewards for WELL stakers in the Safety Module Enhance security through greater shortfall insurance and fostering stronger governance engagement Encourage continued governance participation We seek to gauge community sentiment through this snapshot temperature check vote before moving forward with an onchain vote in the next week. Please also review the associated forum post for additional details and to share any thoughts, questions, or concerns that you may have. --- Moonwell Protocol Revenue Generation Current Revenue Growth Moonwell is one of the top revenue-generating protocols across all deployed networks. In December 2024 alone, the protocol generated $386.1K in revenue and over $2.1M in fees for lenders. Until now, that protocol revenue has been largely idle, stored in core markets as reserves, which act as extra liquidity to facilitate user withdrawals. !Revenue Chart New Sources of Revenue New revenue sources have come online in recent weeks and months that should continue to increase protocol revenue, primarily in three areas: Vault Performance Fees: Moonwell’s Flagship and Frontier vaults generate performance fees, captured as protocol revenue and added to core market reserves. The retail borrowing demand for USDC from Coinbase Bitcoin borrowers is expected to significantly increase these fees in the coming months as their new borrow product continues to be rolled out to more users. Oracle Extracted Value (OEV): A pilot for Oracle Extracted Value launched on Optimism. Once proven successful, it will be put up to a vote to expand to Base and Optimism markets, significantly increasing protocol revenue. According to IntoTheBlock data, liquidators have made $2.09M in profit from Base core market liquidations alone. With the new OEV solution, 99% of that could be recognized as protocol revenue. Leveraged Bitcoin Restaking Markets: New markets for Lombard BTC and the cbBTC Frontier vault have positioned Moonwell as the premier venue for leveraged Bitcoin restaking, increasing TVL and revenue in the coming months. Why This Matters Moonwell has focused relentlessly on capital efficiency, fee capture, and revenue growth. Notably, much of Morpho’s TVL originates from Moonwell’s vaults, though DeFi Llama does not attribute that TVL to Moonwell. However, what truly matters is capital efficiency and revenue generation, and Moonwell generates more revenue per $ of TVL than any other lending app on Base. Where Should This Revenue Go? The Case for Safety Module Rewards For years, DeFi protocols have debated how to allocate excess revenue effectively. Many options carry excessive regulatory risk, making them unfeasible. After months of consultation with top legal experts, Moonwell contributors have come up with what we believe to be a sustainable mechanism that aligns all stakeholder incentives. As a continuation of the effort to increase governance participation, we propose that excess protocol revenue be auctioned for WELL tokens and allocated to the Safety Module Ecosystem Reserve.The Ecosystem Reserve is a smart contract that holds protocol reserves and is currently used to reward Safety Module stakers for their role in shortfall insurance and governance participation. To achieve this, Moonwell contributors propose implementing onchain auctions via smart contracts: Excess ETH, USDC, cbBTC, wstETH, cbETH, rETH, AERO, and other reserves will be auctioned for WELL. The acquired WELL will be transferred to the Safety Module Ecosystem Reserve to bolster staking rewards. --- How the Auction System Works This system introduces a new onchain auction contract that allows WELL tokens to be used in exchange for reserve assets. The contract will conduct multiple mini-auctions throughout each cycle, selling reserve assets over time. This approach: Averages out sale prices over time, effectively emulating a TWAP (Time-Weighted Average Price) strategy. Uses a linear decay function that initially applies a premium, then gradually introduces a discount relative to the Chainlink price. Caches prices at each step to ensure a structured, predictable auction process. Sends proceeds to the WELL Holding contract, which can then be used to fund the Safety Module via governance proposals. Step-by-Step Walkthrough Here’s how the process will work: !Auction Overview 1. Automated Governance Proposal: The governance proposal that rebalances liquidity incentives will include additional calls to withdraw excess protocol revenue to the Governor smart contract. - While the example focuses on WETH and USDC, this process applies to all relevant markets. 2. Token Transfer to Auction Contracts: The same governance proposal will transfer WETH, USDC, and other tokens to separate auction contracts for each asset, initiating a fully onchain, decentralized auction. - Auctions begin with 100% of the assets (WETH, USDC, etc.), and by the end of a two-week period, they will be converted to 100% WELL. 3. Auction Mechanics: - The total auctioned tokens are divided into 84 equal mini-auctions, each lasting 4 hours. - Each mini-auction starts above the Chainlink price and slowly decays over 4 hours until a market participant (typically a MEV bot) swaps WELL for the asset. - By splitting the auction into 84 time-weighted auctions, the system ensures optimal price execution while avoiding unnecessary swap fees and gas costs. 4. Final Settlement & Distribution: - Four weeks later (two weeks after the auctions end), the next automated liquidity incentive proposal will transfer the acquired WELL to the Safety Module Ecosystem Reserve. - Governance will then adjust the staking rate to enable the higher staking reward APR. 5. Claiming Staking Rewards: - Safety Module stakers can claim rewards at any time, as they do currently. - No structural changes to the Safety Module architecture are proposed—the Ecosystem Reserve was designed for this purpose. Determining Safe Reserve Withdrawal Levels A key question is how much of each market's reserves should be allocated to these auctions? Input from Gauntlet and other risk experts is critical in establishing safe reserve thresholds for each core market. These thresholds should be dynamic—if market conditions shift significantly, Gauntlet and other contributors can provide updated guidance, which can then be reflected in governance reward speed proposals. --- Projected Impact on Staking Rewards How much would this bolster Safety Module staking rewards? !Staking Rewards Impact In December 2024, the automated liquidity incentives proposal allocated 4,394,963.08 WELL to Safety Module stakers on Base. - At today’s price of $0.039, that equates to ~$171,403.56 in rewards and a 7.42% APR. In December 2024, Moonwell also generated ~$352,777 in protocol revenue on Base, according to Token Terminal. Redirecting protocol revenue to Safety Module stakers could increase staking rewards by an estimated 3.06x, boosting APR to 22.71%. Note: Estimates are subject to market conditions and may vary. --- Open Questions For Gauntlet, BlockAnalitica, B. Protocol, and other risk-focused contributors: what should we keep in each market as a healthy level of reserves? Should we fully distribute all the WELL obtained through the auctions to Safety Module stakers every 4 weeks, or should the staking APR be capped at some lower level, such as 20%? * Some contributors have proposed capping the staking APR at 20%, which would allow some WELL to stay in the Safety Module Ecosystem Reserve, which would be beneficial to keep the staking APR high during bear markets, or to further bolster the shortfall insurance. What challenges or issues do you see with this proposal? --- Voting Options ✅ Yay – Support implementing the above model to auction excess protocol reserves into staking rewards, strengthening governance participation and shortfall insurance. ❌Nay – Do not implement this change. ⚪Abstain – No preference on the decision.

I am pleased to propose the addition of the Virtuals (VIRTUAL) token. $VIRTUAL is the Virtuals Protocol’s governance and utility token, designed to power the onchain co-ownership of AI agents. It underpins the protocol’s ecosystem, facilitating tokenized interactions across Base and Ethereum, and aligns incentives for all participants in the AI agent economy. General Information Token: VIRTUAL $VIRTUAL as the Base Asset for Agent Tokens Liquidity Pairing: $VIRTUAL serves as the paired token in liquidity pools for each AI agent. The creation of new agents requires a predefined amount of $VIRTUAL tokens, locking liquidity and generating deflationary pressure. Routing Currency: Transactions for purchasing agent tokens are routed through $VIRTUAL, promoting demand for the token and establishing it as a core currency in the ecosystem. Per-Inference Payments: Users make onchain payments in $VIRTUAL for agent interactions, directly linking token utility to agent functionality. Benefits to the Moonwell Community: AI Agent Exposure and Offering: Listing $VIRTUAL on Moonwell introduces a high-utility token integrated into the onchain AI agent sector. This expansion offers Moonwell users access to lending and borrowing opportunities tied to AI-driven ecosystems, driving protocol engagement. Recent Demand and Deflationary Mechanics: $VIRTUAL’s deflationary tokenomics, driven by its role in AI agent liquidity pools, ensures sustained demand and scarcity. Integrating $VIRTUAL into Moonwell allows the protocol to offer an asset with possible value growth. The VIRTUAL token has also seen consistent demand in the Base ecosystem, and thus there is a unique opportunity for lending protocols to list it for their users. Resources and Socials Virtuals Protocol Twitter Token Documentation Whitepaper Sky Social Channels Metrics Twitter: 152k followers !|624x385 Market Metrics Market Cap: $4,319,399,580 Minimum/Maximum Market Cap (Last 6 months): $22M (July) / $4B (January) Circulating Supply (on Base): 1,000,000,000 Maximum Supply: 486,684,007 VIRTUALS 30D Total Volume (CEX/DEX) on Base: $11B 24 Hour Trading Volume: $650M Liquidity on Decentralized Exchanges: Uniswap V3 (Ethereum) -2% Depth: $91,816.49 Uniswap V2 (Base) -2% Depth: $126,658 Aerodrome Slipstream (Base) -2% Depth: $191,102 Herfindahl Index: The Herfindahl-Hirschman Index (HHI) measures token concentration among holders, with higher values indicating greater centralization. Currently, the HHI for the VIRTUAL token on the Base network is 0.020, a level generally considered indicative of low concentration and high decentralization. This suggests that the token's distribution is fairly balanced among its holders. Notably, the token's early introduction into the Base ecosystem positions it for continued growth. Decentralization Top 10 Holders Token Contract: 0x0b3e328455c4059EEb9e3f84b5543F74E24e7E1b Privileged Roles in Token Contract: None Blacklist Functionality: There is no blacklist or pause functionality within the VIRTUAL token contract. Token Standard: ERC20 Smart Contract Risks Codebase and onchain activity: * Github Repo * Total transactions: Over 17,888,255 on Base * Age of token in days: 378 days Security Posture: Here is a google drive containing security audit reports. https://drive.google.com/drive/folders/1n4-i245j8_0Ez1XjHSjiqm-yszrbtiXF?usp=sharing. Additionally, there is a bug bounty program in development to be released soon. Upgradability: The VIRTUAL token is not upgradeable. Oracle Assessment Oracle Price Feed Addresses: * VIRTUAL-USD, Base Feed address: Moonwell Contributors have requested the creation of a Chainlink price feed for VIRTUAL and it is currently in development. Name: 0xMims Telegram): Mims0x LinkedIn Twitter: 0xMims Delegate Address: * 0xMims: 0x657D07095b082BB71ebD93F549f407A97f49094F Relationship with Token: I am a Moonwell community member and delegate. I bear no relationship with the VIRTUAL token on a personal or professional level. Conclusion Listing the $VIRTUAL token on Moonwell's lending and borrowing markets presents a strategic opportunity to drive protocol growth and engagement. Integrating $VIRTUAL, a high-utility governance and utility token within the rapidly expanding onchain AI agent sector, aligns Moonwell with one of the leading Base-native projects. I am opening this proposal to the community to review, discuss, and provide feedback on this proposal to ensure its success and alignment with our shared vision for a secure and decentralized onchain financial future.

We propose listing tBTC in Moonwell’s Core lending markets to strengthen BTC liquidity and provide a secure, trust-minimized alternative to traditional wrapped assets. This listing aligns with Moonwell’s mission of making onchain finance secure, accessible and user-friendly for everyone General Token Asset Name: tBTC A description of the project and the token tBTC is a gateway between Bitcoin and Decentralized Finance. tBTC provides Bitcoin holders open access to the thriving DeFi ecosystems available cross-chain. tBTC allows you to unlock your Bitcoin’s value to borrow and lend, mint stablecoins, provide liquidity and much more. Existing solutions that bridge Bitcoin to Ethereum require users to send their Bitcoin to an intermediary, in exchange for an ERC-20 token that represents the original asset. This centralized model requires you to trust a third party and is susceptible to censorship, threatening the premise of Bitcoin as a sovereign, secure, permissionless digital asset. Instead of centralized intermediaries, tBTC uses a randomly selected group of beta node operators running tBTC nodes on the Threshold Network to secure deposited Bitcoin through threshold cryptography. That means tBTC requires a threshold majority agreement before beta operators perform any action with your Bitcoin. tBTC is live on 9 chains beyond Bitcoin. 340 tBTC active on Base. Native minting on Ethereum and Arbitrum with Base coming in Q1. tBTC is the only fully permissionless BTC bridge. MCAP sitting at 430m Live on Aave with 115m TVL. Newly added as a collateral asset for SolvBTC on Base. Benefits to the Moonwell Community Further decentralization and trust minimization in the Moonwell stack. Give users further opportunity to earn with their Bitcoin on Base. Collaboration with the Threshold Network DAO, opening up co-marketing opportunities to boost Moonwell’s reach. Resources (Website, Social Media Links, and docs) Project: https://www.threshold.network/ Minting dashboard: https://dashboard.threshold.network/tBTC/mint GitHub: https://github.com/keep-network/tbtc-v2 Docs: https://docs.threshold.network/applications/tbtc-v2 Audit: https://threshold.network/about#audits Immunfi Bug Bounty: https://immunefi.com/bounty/thresholdnetwork/ Llama Risk Report: https://hackmd.io/@LlamaRisk/tBTC CoinMarketCap: https://coinmarketcap.com/currencies/tbtc-token/ CoinGecko: https://www.coingecko.com/en/coins/tbtc Dune: https://dune.com/threshold/tbtc Oracle: * Chainlink Base Pricefeed: 0x6D75BFB5A5885f841b132198C9f0bE8c872057BF The proposal author’s contact information Telegram: @getmorebullishh, @citizen42 & @DKAY_101 The relationship between the author of the new market proposal and the token Ethan - Threshold Network Growth Coordinator Citizen42 - Threshold Network Contributor DK - Threshold Network Contributor Social channel metrics (size, activity, and growth) X (Twitter): https://twitter.com/TheTNetwork - 38k followers https://twitter.com/tBTC_project - 13k followers Discord: https://discord.com/invite/threshold - 9.3k followers Market Risk Assessment Market cap of the token* 486,822,549 USD https://dune.com/threshold/tbtc Total supply* 4,651.88 BTC https://dune.com/threshold/tbtc The largest central and decentralized exchanges where the token is listed and its respective liquidity* |Exchange|Chain|Pool|Total Liquidity ($)| | --- | --- | --- | --- | |Aerodrome|Base|CL1 TBTC/CBBTC|1.91M| |Aerodrome|Base|CL200 TBTC/ETH|1.98M| |Aerodrome|Base|sAMM TBTC/cbBTC|1.26M| |Aerodrome|Base|vAMM TBTC/WETH|0.84M| |Aerodrome|Base|CL200 TBTC/USDC|0.79M| https://coinmarketcap.com/currencies/tbtc-token/ Volatility per Gauntlet’s definition Gauntlet - MakerDAO Auction Report (30 days, 90 days, 1 year) Daily Vol 0.026979440 Monthly Vol 0.161038119 Quarterly Vol 0.336858236 Yearly Vol N/A https://docs.google.com/spreadsheets/d/1Gf8egeBeitlDZFiGRtFAV22DYiJ-f6aaU5qpMQtLY/edit?gid=1179539432#gid=1179539432 Average daily trading volume on CEX and DEX* Approx. 2m https://dune.com/gork/tbtc-volume Gini coefficient and Herfindahl index of token balances* Gini coefficient: 0.99087 Herfindahl Index: 0.132809 Emission schedule N/A, tBTC is one-to-one backed by BTC. Decentralization List the top 10 token holders, the percentage held by each holder, and tag them if they are known* 1. 0x10ac93971cdb1f5c778144084242374473c350da - Aave_v3: AToken - 27.00% 2. 0xab13b8eecf5aa2460841d75da5d5d861fd5b8a39 - Mezo: Portal - 17.75% 3. 0x3ee18b2214aff97000d974cf647e7c347e8fa585 - Wormhole: TokenBridge - 13.24% 4. 0x71518580f36feceffe0721f06ba4703218cd7f63 - Verus Bridge - 5.26% 5. 0xbbbbbbbbbb9cc5e90e3b3af64bdaf62c37eeffcb - Morpho_blue: MorphoBlue - 4.15% 6. 0xbbbbbbbbbb9cc5e90e3b3af64bdaf62c37eeffcb - Morpho_blue: Morpho - 4.15% 7. 0xb7ecb2aa52aa64a717180e030241bc75cd946726 - Curvefi: 2btctbtcwbtc - 3.80% 8. 0x3f6ce1b36e5120bbc59d0cfe8a5ac8b6464ac1f7 - BOB Contract - 3.20% 9. 0xf9bd9da2427a50908c4c6d1599d8e62837c2bcb0 - Curvefi: crvusdammtbtc - 2.56% 10. 0xb4378d4e3528c12c83821b21c99b43336a543613 - Safetest: Safev41 - 1.68% List all of the privileged roles in the token contract. This can include whitelisted EOAs, Multi-sigs, or DAOs.* Multi-sigs: tBTC contracts are secured by the Threshold Council’s 6-of-9 multisig on Ethereum Mainnet. The tBTC bridge includes a 24-hour timelock for any upgrades which is also under Councils supervision ensuring transparency and review time. The Threshold DAO contracts are governed by the Governor Timelock Contract which prioritize security and decentralized control within the community. |Chain|Address|| | --- | --- | --- | |Ethereum|0x9F6e831c8F8939DC0C830C6e492e7cEf4f9C2F5f|| |ETH (+Foundation)|0xf642Bd6A9F76294d86E99c2071cFE2Aa3B61fBDa|| |Arbitrum|0x9F6e831c8F8939DC0C830C6e492e7cEf4f9C2F5f|| |Optimism|0x7fB50BBabeDEE52b8760Ba15c0c199aF33Fc2EfA|| |Polygon PoS|0x9F6e831c8F8939DC0C830C6e492e7cEf4f9C2F5f|| |Base|0x518385dd31289F1000fE6382b0C65df4d1Cd3bfC|| |Solana|3SUj1ow3EPr4UCi9Bn2jq6hc27PETGX5dN6kcznsVTZD|| Is the token pausable?* No Does the token have a blacklist?* TRM Labs screening. Smart Contract Risks Codebase & On-chain Activity Provide a Github repository for the underlying token contracts* https://github.com/keep-network/tbtc-v2 Provide a test suite with code coverage Provide in Github repository. Provide Bassescan/Moonscan/Etherscan links with verified contracts* https://basescan.org/token/0x236aa50979d5f3de3bd1eeb40e81137f22ab794b Give the age of the token in days* 803 days (as of 10th December 2024) Provide the number of transactions in the contract to date* 86,310 Security Posture What audits, if any, were performed? Provide links to the reports if they exist* Least Authority - Sept 2022 (https://github.com/threshold-network/security-audits/blob/main/29-Sep-2022-LeastAuthority.pdf) Least Authority - Aug 2023 (https://github.com/threshold-network/security-audits/blob/main/29-Aug-2023-LeastAuthority.pdf) Does the project have an active bug bounty program?* Yes - https://immunefi.com/bounty/thresholdnetwork/ Provide emergency contacts with their estimated response time/availability. TG: getmorebullishh, john_packel, citizen42 - all within 24 hours List additional security and formal verification tools used in the development Upgradability |Component|Upgradeable?|Who Controls It?|Notes| | --- | --- | --- | --- | |ERC-20 tBTC Token|Not Upgradeable|N/A|Immutable, follows ERC-20 standards.| |BTC Lock/Unlock Logic|Not Upgradeable|N/A|Core logic to ensure BTC-backed 1:1 peg is immutable.| |Oracle Contracts|Upgradeable|Threshold Council Multisig|Oracles used for price feeds, which affect liquidation and redemptions, can be upgraded.| |Collateral Contract|Upgradeable|Threshold Council Multisig|Certain aspects of collateral logic may be adjustable, like collateral ratio thresholds.| |Proxy Contracts|Upgradeable|Threshold DAO + Council Multisig|If proxies are used, they can be upgraded via DAO decisions or Threshold Council multisig.| |Off-chain Relayers|Upgradeable|DAO Governance|Off-chain components can be swapped or reconfigured.| |Frontend (App UI)|Upgradeable|Threshold DAO Devs|Frontend apps, like the mint/burn interface, are fully upgradable and not part of on-chain logic.| |Parameter Adjustments|Upgradeable|Threshold Council Multisig|LTV Ratios, collateralization changes, and fee adjustments are upgradeable via the DAO or council.| |Governance Contracts|Upgradeable|DAO + Council Multisig|Protocol governance contracts (like proposal logic) can be upgraded.| Oracle Assessment Chainlink Price Feed Addresses: Base: 0x6D75BFB5A5885f841b132198C9f0bE8c872057BF tBTC is a 1:1 wrapped Bitcoin token on Ethereum. The tBTC token is minted only after the Bitcoin is locked, the system relies on a multi-party custody model (MPC), so no single party controls minting or redemption. Anyone can verify reserves in real time on-chain using Bitcoin and Ethereum explorers. Tools like Dune Analytics and Threshold dashboards give visual transparency on collateralization. Proof of reserves are shown in: https://tbtcscan.com/ In the period between 1st June 2024 to 10/12/2024, tBTC’s price deviation from BTC was: Average Deviation: 0.26% Max Deviation: 1.38%

I am pleased to propose the addition of USDS (Sky Dollar), the stablecoin of Sky Protocol, to Moonwell’s suite of core lending markets on Base. This proposal is an opportunity to enhance market utility, foster ecosystem growth, and provide users with a decentralized, stable asset aligned with the protocol’s mission. USDS is an ERC-20 compliant stablecoin designed to maintain a soft peg to the U.S. dollar while enabling interoperability across DeFi platforms. It is backed by surplus collateral and fully upgradeable through the UUPS proxy pattern and ERC-1967 standards, USDS provides a robust and flexible solution for stable value transfers. General Information Token: USDS USDS is the stablecoin of the Sky Protocol, designed to maintain a soft peg to the U.S. dollar while enabling users to engage seamlessly within the ecosystem. It combines stability, flexibility, and decentralization to empower users across decentralized finance (DeFi). Key functionalities include: 1:1 DAI Conversions: The USDS/DAI converter allows seamless and unrestricted 1:1 conversions between DAI and USDS, ensuring ease of liquidity movement. Participation in Sky Savings Rate: USDS holders can earn rewards through the Sky Savings Rate, providing a decentralized, non-custodial savings option without sacrificing control of their funds. Benefits to the Moonwell Community: 1. Enhanced Stablecoin Liquidity: Listing USDS will expand the protocol’s stablecoin offerings, creating additional lending and borrowing opportunities while ensuring access to a robust, decentralized stable asset. 2. Increased Protocol Engagement: By integrating USDS, the protocol can attract users from the Sky Protocol ecosystem, including those seeking to leverage the Sky Savings Rate for stable returns. 3. Decentralization Alignment: As an upgraded version of DAI, USDS represents a permissionless, non-custodial alternative that aligns with the principles of decentralized finance. 4. Reduced Systemic Risk: Backed by surplus collateral and supporting secure 1:1 conversions, USDS offers a stable, reliable asset that mitigates risks associated with over-leveraged or under-collateralized stablecoins. Resources and Socials Sky Website Token Documentation Sky Twitter Sky Governance Forum Sky Social Channels Metrics Twitter: 285k followers Market Risk Assessment !|624x395 Market Metrics Market Cap: $1,002,682 (On Base, across all networks the market cap is $5.2B) Minimum/Maximum Market Cap (Last 6 months): $0M (June 14th) / $5.2B (December 14th) Circulating Supply (on Base): 1,002,682 USDS Maximum Supply: ∞ USDS 30D Total Volume (CEX/DEX) on Base: $2,555,337 24 Hour Trading Volume: $28M Liquidity on Decentralized Exchanges: Uniswap V2 (Ethereum) -2% Depth: $3,158,079 Herfindahl Index: The Herfindahl-Hirschman Index (HHI) measures token concentration among holders, with higher values indicating greater centralization. Currently, the HHI for this token on the Base network stands at 0.99, a level typically considered extremely centralized. However, this can be reasonably attributed to the majority of the token's supply being held within its bridge contract. Given that the token was recently introduced into the Base ecosystem, it remains in its early stages. Importantly, there is clear evidence of the Sky Protocol team's commitment to decentralization. On the Ethereum network, the token's HHI is 0.32, a significantly lower and healthier value compared to its current state on Base. USDS Ethereum HHI USDS Base HHI Decentralization Top 10 Holders Token Contract: 0x820C137fa70C8691f0e44Dc420a5e53c168921Dc Privileged Roles in Token Contract: The USDS token contract includes privileged roles that retain the ability to freeze accounts. This means that the contract administrators can restrict the use of USDS for specific wallets/smart contracts. Blacklist Functionality: Yes, the USDS token contract includes a blacklist feature. This function enables the freezing of wallets/smart contracts preventing them from transacting with USDS. Token Standard: ERC20 USDS Stablecoin (USDS) Token Tracker | BaseScan Smart Contract Risks Codebase and onchain activity: * Github Repo * Total transactions: 593 * Age of token in days: 39 days (on Base) Security Posture: Sky Protocol has conducted a significant number of audits from notable parties like Cantina, Sherlock, and ChainSecurity. A list of audits may be found here. Bug bounties for Sky Protocol may be found here. Upgradability: * Is it upgradeable: Yes, the USDS contract is upgradeable, governance mechanisms in the Sky ecosystem can manage these upgrades. To read more about the SKY governance process, see here: Maker Governance Help Portal. * Upgrade Process: Sky Governance can upgrade the contract if an onchain vote passes. The upgrade process involves setting the governance pause proxy module as a ward, meaning contract functions can be modified through governance decisions. All upgrades would have a timelock of 30 hours. Oracle Assessment Oracle Price Feed Addresses: * USDS-USD, Base Feed address: 0x2330aaE3bca5F05169d5f4597964D44522F62930 * Relevant Documentation: https://docs.chain.link/data-feeds/price-feeds/addresses?network=base&page=1&search=usds Proposal Author Information Name: 0xMims Telegram: Mims0x LinkedIn Twitter: 0xMims Delegate Address: 0x657D07095b082BB71ebD93F549f407A97f49094F Relationship with Token: I am a Moonwell community member and delegate. I bear no relationship with the USDS token on a personal or professional level. Conclusion The inclusion of USDS as a core lending market presents an opportunity to enhance stablecoin utility anddrive liquidity growth on Moonwell. By supporting USDS, we can empower users with new financial opportunities while reinforcing stability and innovation within the protocol. I am opening this proposal to the community to review, discuss, and provide feedback on this proposal to ensure its success and alignment with our shared vision for a secure and decentralized onchain financial future.

I am pleased to present a proposal for the addition of WELL, Moonwell’s governance token, to the protocol’s expanding suite of Core lending markets. This proposal is a significant step toward further enhancing WELL's utility and solidifying its role within the Moonwell ecosystem. With WELL’s robust DEX liquidity on Aerodrome, its circulating market capitalization of $200M, and the recent integration of a Chainlink price feed for WELL on Base, the foundation is set for a successful market listing. By enabling WELL as a core market, we aim to empower the community with new financial opportunities, stronger liquidity, and broader governance participation, driving the protocol's growth and decentralization. This proposal outlines key information about WELL, its unique utility, and the anticipated benefits of its inclusion in Moonwell’s Core markets. It also includes market risk assessments, decentralization metrics, and suggested safeguards against potential vulnerabilities. We encourage the community to carefully review this proposal and provide feedback to ensure this initiative aligns with Moonwell's mission of making onchain finance simple, secure, and accessible to all. General Information Token: WELL WELL is Moonwell's governance token, distributed to users who actively engage in lending and borrowing. It enables holders to contribute to the protocol’s governance and security across Base, Optimism, and Moonbeam. Key functionalities include: Submitting and voting on onchain "Moonwell Improvement Proposals" (MIPs) to guide the protocol’s evolution. Delegating voting power to trusted representatives to vote on their behalf. Participating in offchain governance through Snapshot voting, ensuring diverse and inclusive decision-making. Staking tokens in the Moonwell Safety Module on Base, Optimism, or Moonbeam. This staking mechanism enhances protocol security while offering rewards to stakers for their contribution to Moonwell’s overall stability. Benefits to the Moonwell Community 1. Expanded Utility for WELL: Activating a core lending market for WELL will introduce new use cases, aligning with community feedback to strengthen token utility. 2. Enhanced Liquidity and Volume: A WELL lending market will drive liquidity growth across Base, solidifying the asset’s position within the broader DeFi ecosystem. 3. Broader Token Distribution: By allowing WELL to be used as a borrowable and lendable asset, more users can acquire WELL through participation in the market. This wider distribution fosters a more decentralized governance structure, reducing the influence of concentrated token holders. 4. Strengthened Governance Participation: Those who borrow or supply WELL are more likely to engage with governance to protect and enhance the protocol. This creates a feedback loop where market participants become active contributors to protocol evolution. Resources and Socials Moonwell Website Token Documentation Twitter Discord Mirror Moonwell Social Channels Metrics Twitter: 44,400 followers Discord: 8329 members Telegram: 7966 members Market Risk Assessment !|624x536 Market Metrics Market Cap: $200M Minimum/Maximum Market Cap (Last 6 months): $72M (June 1st) / $325M (December 1st) Circulating Supply: 3,046,702,305 WELL Maximum Supply: 5,000,000,000 WELL 30D Total Volume (CEX/DEX): $288,625,308 24 Hour Trading Volume: $10.78M Liquidity on Centralized Exchanges Coinbase -2% Depth: $141,109 Bitrue -2% Depth: $14,002 Gate.io -2% Depth: $13,524 Kucoin -2% Depth: $6,241 Liquidity on Decentralized Exchanges: Aerodrome (Base) -2%: $512,763 Aerodrome SlipStream -2%: $10,370 Uniswap V3 (Base): $5,801 Herfindahl Index: 0.03429 The Herfindahl Index quantifies token concentration among holders. A value of 0.03429 reflects low concentration risk for WELL, indicating that governance risks stemming from concentrated holdings are minimal. This value compares favorably to governance tokens in other DeFi protocols, supporting WELL’s decentralization. Decentralization Top 10 Holders Token Contract: 0xA88594D404727625A9437C3f886C7643872296AE Privileged Roles in Token Contract: * Multichain Governor: * Owns the Proxy Admin * Proxy Admin owns the xWELL token across all chains * There is ownership control by the Temporal Governor and Moonwell Artemis Timelock for managing WELL bridges, bridge rate limits, and pauses. The max rate limit is 10k tokens/second with a maximum pause duration of 30 days. * The Governor can be changed by Moonwell’s governance guardians/security council. In “break glass” emergencies, these parties can agree to roll back governance ownership to the previous Artemis Governor. The security council guardian operates under a 3/5 multisig. Distribution/Top Holders: According to Bubblemaps.io the majority of the token is split Blacklist Functionality: The WELL token contracts have no blacklist function. Token Standard: xERC20 * WELL conforms to the xERC20 standard which enables cross-chain fungibility. This allows WELL to be used as a governance token across all of Moonwell’s respective chains, Base, Optimism, and Moonbeam. It relies on bridge contracts with configurable rate limits to prevent over-minting in case of bridge compromise. Economic Risks If WELL is introduced as a borrowable asset, it may become vulnerable to governance attacks, wherein borrowed WELL could be utilized to advance malicious proposals. At current market prices, achieving the quorum of 100M WELL would require approximately $7.3M; however, recent governance activity indicates that most proposals surpass the 100M vote threshold. It is recommended that borrow caps be actively managed to ensure no user can borrow an amount exceeding the minimum quorum threshold. Smart Contract Risks Codebase and onchain activity: * Github Repo * Total transactions: 943,932 * Age of token in days: 895 days Security Posture: Moonwell has conducted a significant number of audits, a list of these audits may be found here. Additionally, the smart contract engineers take a proactive approach to security, testing all changes, and requiring testing, code reviews and audits before new smart contracts are added to the system. Upgradability: * Is it upgradeable: Yes * Upgrade Process: Moonwell Governance can upgrade the contract if an onchain vote passes. Oracle Assessment Oracle Price Feed Addresses: * WELL-USD, Base Feed address: 0xc15d9944dAefE2dB03e53bef8DDA25a56832C5fe * Relevant Documentation: https://docs.chain.link/data-feeds/price-feeds/addresses?network=base&page=1&search=well * WELL-USD, Optimism Feed address: 0x7F102e5b4C32e0861293E97DE85e6E0dB3530605 * Relevant Documentation: https://docs.chain.link/data-feeds/price-feeds/addresses?network=optimism&page=1&search=well The WELL token exists on Base, Optimism, and Moonbeam. Proposal Author Information Name: 0xMims Telegram: Mims0x LinkedIn Twitter: 0xMims Delegate Address: 0x657D07095b082BB71ebD93F549f407A97f49094F Relationship with Token: I am a Moonwell community member and delegate. Conclusion The inclusion of WELL as a core lending market is an exciting opportunity for the Moonwell ecosystem. This proposal not only enhances WELL’s utility and governance potential but also reinforces the protocol’s commitment to decentralization, security, and innovation. By enabling WELL as a core market, we unlock new financial opportunities for the community, drive liquidity growth, and foster broader participation in Moonwell’s governance framework. Your feedback and engagement are critical to the success of this initiative. Let’s work together to ensure this proposal aligns with Moonwell’s mission of making onchain finance simple, secure, and accessible for all. We invite you to review, discuss, and contribute to this proposal to shape the future of Moonwell and its ecosystem.

Lombard (LBTC) <> Moonwell Author: Maksym Repa (Head of DeFi at Lombard) // TG Contact: @Maksym00 Summary This proposal recommends listing Lombard’s LBTC—a liquid-staked Bitcoin built on Babylon—as a supported asset on Moonwell. By adding LBTC as collateral, Moonwell will unlock the borrowing demand for cbBTC and provide a foundational source of yield for BTC lending within the Moonwell ecosystem. Additionally, listing LBTC as a borrowable asset would enable looping opportunities with PT assets from Pendle. Official Website: www.lombard.finance Documentation: docs.lombard.finance Github: github.com/lombard-finance X Profile: x.com/LombardFinance LBTC Dashboard: dune.com/lombardprotocol/lombard LBTC on Base: 0xecAc9C5F704e954931349Da37F60E39f515c11c1 LBTC’s Security Lombard stands as the most secure Bitcoin Liquid Staking Token (LST) protocol, addressing both smart contract, custody, and depeg risks. BTC Security: Lombard employs a trust-minimized, decentralized security model for BTC. Using a validator network (“Lombard Consortium”), validators notarize deposits to allow minting/burning of LBTC. Key management and a robust set of policies (off-chain smart contracts) that cryptographically restrict the actions the Lombard Consortium can take, preventing malicious actions or actions not intended by the Lombard Protocol. Multi-factor approvals and a withdrawal delay are required as an extra precaution. Depeg Protection: LBTC is the most liquid Bitcoin LST on the market, supported by $100+ million in DEX liquidity on Ethereum and Base. Lombard’s LBTC is exclusively backed by native BTC and has been fully redeemable since its launch - allowing for effective and quick arbitrage response to significant liquidity events. Additionally, Lombard is the first and only BTC LST to implement a proof-of-reserves oracle built in collaboration with Redstone. PoR oracle provides crucial transapancy and reassurance in solvency of Lombard’s BTC balances, consequently disincentivizing LBTC liquidations below redemption value and further strengthening the peg. Note: Historically, no meaningful price deviations ever occurred to the market price of LBTC paired against BTC-pegged assets such as WBTC and cbBTC. Proactive Monitoring: Lombard have implemented multiple layers of active monitoring for LBTC contracts and relevant contracts across all supported blockchains. We utilize multiple RPCs and the Hexagate platform to detect malicious activities, with automated pausing capabilities and incident response via PagerDuty. Additionally, we monitor heavy DeFi allocations involving LBTC to screen for third-party market risks continuously. Robust Oracles: Proof-of-Reserves Oracle by Redstone: Redstone monitors the Bitcoin addresses that belong to Lombard's consortium in real-time and derives a ratio between BTC controlled by Lombard and the total supply of LBTC tokens across all supported chains. There are also adjustments for totalunclaimedlbtc (LBTC tokens that are not yet minted but already have correlated BTC tokens deposited to the Lombard protocol) and totalbtcunstakes_pending (BTC tokens in the 7-day withdrawal period). Read the documentation here and find the BaseScan link to the oracle here. Lombard’s Suggestion for Mixed Oracle Approach: Implement the Proof-of-Reserves Oracle by Redstone as a core price reference for LBTC in BTC denomination. In order to interpret the LBTC in USD terms, we suggest to multiply the Redstone’s PoR BTC/LBTC rate by Chainlink’s BTC/USD Price Feed available here. Existing Gauntlet curated markets on Morpho: LBTC/cbBTC (Ethereum) - 94.5% LTV, $8.4m supplied LBTC/cbBTC (Base) - 94.5% LTV, $5.3m supplied LBTC/wBTC (Ethereum) - 94.5% LTV, $19m supplied PT-LBTC/LBTC (Ethereum) - 91.5% LTV, $5m supplied Smart Contract Audits & Bug Bounties: The Halborn smart contract report is live on their website. The Veridise smart contract report can be found in the attached PDF. The Halborn consortium report is live on their website. The Immunefi Bug Bounty Program ($250k) Other Smart Contract Details: Security Incidents: None LBTC transfers to date: 147k on Ethereum & 28k on Base Upgradability: Yes. 24-hour timelock is implemented. Token Pausability: Yes. An automated risk monitoring system can trigger a pause. Blacklist: No blacklist functionality for LBTC. However, the Security Consortium members all screen against TRM for sanctions and high-risk activities to reduce the risk of any illegal activity from Lombard depositors and LBTC owners. Privileged Roles: * Lombard Security Consortium: LBTC minting, and LBTC redemptions * Lombard Team: upgrading contracts (with 24hrs timelock), unpausing * Pauser multisig: pause LBTC contracts LBTC’s Market Position Beyond its security-first design, LBTC has emerged as the leading market player in Bitcoin staking, representing over 40% of the Bitcoin LST market share and serving as the largest staker on Babylon. Additionally, LBTC ranks as the fourth-largest overall BTC derivative, trailing only WBTC, BTCB and cbBTC. Public Beta Launch Date: August 21, 2024 LBTC Market Cap: >$1 billion (circ. supply of 11.6k LBTC) Liquidity on Ethereum: ±$70m * WBTC/LBTC pool on Uniswap ($62m avg. monthly volume) * cbBTC/LBTC pool on Uniswap ($13m avg. monthly volume) * WBTC/LBTC stableswap pool on Curve ($13.5m avg. monthly volume) * eBTC/WBTC/LBTC stableswap pool on Curve ($1.2m avg. monthly volume) Liquidity on Base: ±$35m * cbBTC/LBTC pool on Aerodrome (no significant historical data on volumes) LBTC %TVL in DeFi: ±80% * $100m+ on DEXs * $50m+ on Lending markets * $170m+ on Pendle (in LBTC & eBTC) * $570m+ in Restaking Social Channel Metrics: * X: 38k followers (engagement MoM growth in Nov: 2x) * Discord: 21k members * [Telegram]: 1.6k members LBTC Distribution: * On Ethereum * On Base LBTC’s Value Proposition Yield-Bearing Collateral: LBTC provides an underlying yield from staking BTC within Babylon, making it a yield-bearing asset. Bitcoin LSTs are positioned to follow the success of yield-bearing ETH LSTs by offering BTC holders an effective way to maximize capital efficiency. Ideal Collateral for Underutilized cbBTC: Demand for leveraged LBTC exposure is consistently high across lending markets, where utilization rates for LBTC borrowing frequently reach maximum capacity. This presents a unique opportunity for Bitcoin lenders on Moonwell Protocol to unlock sustainable lending yields, addressing a gap in DeFi where BTC lending yields historically remain below 1% APY. LBTC x Pendle PT tokens: Lombard has a dominant market position on Pendle with $170m in liquidity in the form of LBTC. Leveraging PT tokens against LBTC and cbBTC offers a unique opportunity to capitalize on BTC's fixed yield. Incentives: Listing LBTC on Moonwell allows users to tap into a range of incentives from leading BTCfi protocols, including Lombard and Babylon. LBTC deployed on Moonwell earns Babylon Points and benefits from Lombard’s Lux program, providing a 3x Lux boost for LBTC collateral on Moonwell. Conclusion This proposal outlines a strategic opportunity for Moonwell Protocol to tap into a rapidly growing BTCfi ecosystem, onboarding the leading asset within the category - LBTC. With over 40% market share in Bitcoin LSTs and ranking as the fourth-largest BTC derivative, LBTC combines secure, yield-bearing capabilities and robust liquidity. Adding LBTC will tap into high borrowing demand for BTC-pegged assets like cbBTC, and looping opportunities for fixed yield with Pendle’s PT tokens, providing a strong yield source for BTC and enhancing ecosystem liquidity. Moonwell users will gain access to incentives from Lombard’s ecosystem, creating a flywheel effect that drives adoption, liquidity, and rewards, supporting DeFi growth.

Summary The Moonwell DAO has received three innovative proposals to optimize Oracle Extracted Value (OEV) capture, presenting a unique opportunity for the protocol to enhance revenue generation. Each proposal offers a distinct approach to improving the way liquidations are handled and subsequent revenue is captured, with varying trade-offs in terms of implementation, complexity, and security. This post outlines the three proposals submitted by Solidity Labs, RedStone, and API3 to help the Moonwell community assess the best path forward. A Snapshot temperature check vote will be held next week to gauge community sentiment on the preferred solution. For additional insights and discussions, watch the “Great OEV Debate” replay here. --- Proposal 1: Solidity Labs – Capturing OEV in the Moonwell Protocol Overview Solidity Labs presents an innovative onchain solution enabling Moonwell to capture 100% of Order-Flow Extractable Value (OEV) revenue from liquidation events. This groundbreaking approach introduces a trustless priority fee auction mechanism, eliminating reliance on centralized offchain infrastructure and ensuring maximum protocol revenue. Key Benefits Complete Revenue Capture Moonwell DAO retains all OEV income, ensuring maximum profitability and efficiency without third-party profit sharing. Seamless Integration with Chainlink Oracles The system integrates with Chainlink’s trusted price feeds, preserving Moonwell's high-security standards for liquidation pricing. Risk-Minimized and Transparent Deployment Designed for security and simplicity, the solution requires minimal code modifications and has undergone extensive auditing by Halborn Security to mitigate risks. Decentralization at its Core Fully onchain, the system adheres to Ethereum’s principles of decentralization and transparency, avoiding centralized offchain dependencies. Resilient Fallback Mechanisms In rare scenarios where no bids are placed, liquidations will proceed as they currently do, ensuring the protocol remains secure and operational even in volatile markets. Implementation Roadmap An initial rollout will begin on the ETH Core Market on Optimism, allowing for comprehensive testing and valuable community feedback. Following its success, the solution will be expanded to other networks and markets, reinforcing Moonwell’s leadership in decentralized innovation. Conclusion By capturing 100% of OEV revenue through a secure, trustless, and efficient system, Solidity Labs’ proposal represents a significant leap forward in revenue generation and protocol design, ensuring Moonwell stays at the forefront of DeFi advancements. Read the full proposal: https://forum.moonwell.fi/t/capturing-oev-in-the-moonwell-protocol/1423 --- Proposal 2: RedStone – Additional revenue stream for Moonwell ecosystem via OEV implementation ZERO ADDITIONAL DELAY When the price falls rapidly every second of delay reduces the potential OEV and may lead to bad debt. RedStone protects against that by: 1) Reducing the auction time to 500ms 2) Auctioning the raw off-chain price updates before they are available on-chain (when the network is congested, Chainlink feeds could be additionally delayed by 30s - 60s) ZERO CODE MODIFICATIONS Integration with RedStone OEV doesn't require any code changes. RedStone fully follows the Chainlink's interfaces. Other OEV solutions that require code changes can expose protocols to unforeseen risks (i.e. a potentially harmless upgrade of Compound's rewards allowed $160M worth of COMP to be stolen). FALLBACK MECHANISMS We designed and crash-tested the solution to work uninterrupted even if the auctioneer mechanism is down. In the worst-case scenario only the potential OEV is at risk. FUTURE-PROOFING RedStone OEV is fully aligned with the principles of SuperChain not polluting the network with bids, which are offloaded to a separate module. Solutions based on MEV tax are overloading the gas logic and don’t follow the recent call from Jessy Pollak (Base founder). POSITIVE SIDE EFFECTS Every few seconds RedStone proposes a new price update and if it could cause a liquidation, the solver will bring that update on-chain. Therefore RedStone increases the frequency of updates and reduces the deviation threshold to be virtually 0%. CURRENT STATE RedStone with Fastlane has already deployed the infrastructure on BASE. We have also already passed the voting for the AERO market. Read the full proposal: https://forum.moonwell.fi/t/additional-revenue-stream-for-moonwell-ecosystem-via-oev-implementation/1392 --- Proposal 3: API3 – Switch Moonwell Moonbeam’s Markets to using API3’s OEV Enabled Data Feeds As Moonwell grows, it makes perfect sense to start to look at alternative oracle providers that are able both to provide new revenue streams, and support future protocol growth to new chains and ecosystems where existing oracle partners may not be present. Swapping all markets on Moonbeam’s Moonwell deployment to using API3 gives Moonwell an opportunity to test API3’s OEV data feeds in a lower TVL instance. API3’s OEV feeds are already used by Compound V2 forks (like Moonwell) - Mendi, Ionic, and Orbit have been using our feeds in production for 6 months without any issues. API3 has never misreported, and has secured over $1B of TVL successfully. Additionally, Compound’s risk assessors have given API3’s data feeds their seal of approval to be used in new Compound deployments. As well as the opportunity to recapture OEV, API3 offers Moonwell flexibility in adding new chains, and will remain committed to supporting planned new Moonwell deployments wherever needed. API3’s data feeds support Moonwell’s existing Chainlink interfaces, and requires no code changes. Overall, voting for API3’s proposal allows Moonwell to have the value of OEV demonstrated by the only production tested OEV solution, and also allows API3 to demonstrate their suitability to support Moonwell’s long term cross-chain expansion plans. Read the full proposal: https://forum.moonwell.fi/t/switch-moonwell-moonbeams-markets-to-using-api3-s-oev-enabled-data-feeds/1409/1 --- Voting Options The Moonwell DAO will vote on these proposals to determine the preferred approach for OEV implementation: 1. Proposal 1: Solidity Labs 2. Proposal 2: RedStone 3. Proposal 3: API3 4. Abstain (No preference for any proposal)