Moonwell Governance

Author(s): Block Analitica and B.Protocol Related Discussions: https://forum.moonwell.fi/t/introducing-moonwell-metamorpho-vaults-next-gen-defi-lending/960 Related Previous Proposal: MIP-B21: Accepting Ownership and Incentivizing Moonwell MetaMorpho Vaults Summary This proposal seeks to extend and optimize the highly successful Moonwell Flagship Vaults incentives program for an additional 6-month period. Since launching on Base in July 2024, the Moonwell Flagship Vaults have emerged as the dominant market leader on Morpho's Base deployment, attracting a peak TVL of $138M, and demonstrating unmatched growth and adoption. Given the program's success and the significant appreciation in WELL token value since the initial grant, we propose a revised incentive program of 18M WELL tokens (reduced from 50M) for the next 6 months. Success of Initial Program Since the activation of Moonwell Flagship Vaults in July 2024, we have achieved exceptional growth and overwhelming market dominance. Current Vault TVL: Moonwell Flagship ETH Vault: 21.5K ETH ($66.16M) Moonwell Flagship USDC Vault: 40.63M USDC ($40.63M) Moonwell Flagship EURC Vault: 2.01M EURC ($12.69M) Total TVL: $119.48M Market Dominance: Moonwell Flagship Vaults represent 84% of all Morpho Vault TVL on Base Flagship ETH Vault: 8x larger than the next largest ETH vault (Re7 WETH at $8.2M) Flagship USDC Vault ($40.63M): 22x larger than the next largest USDC vault (Gauntlet USDC Core at $1.82M) Flagship EURC Vault ($12.69M): 64x larger than the next largest EURC vault (Gauntlet EURC Core at $195.52K) Key Achievements: Explosive Growth: In October alone, the Moonwell Flagship Vaults achieved a 224% TVL increase Market Leadership: Moonwell Flagship Vaults dominate key lending markets: * 93% of the wstETH/ETH market (~$20M borrowed) * 80% of the cbBTC/USDC market (~$9.5M borrowed) * 98% of the wstETH/USDC market (~$10M borrowed) Broad Adoption: 18,596 total depositors across the Moonwell Flagship Vaults Technical Advancements: Implementation of Block Analitica's state-of-the-art vault allocation model has enhanced: * Risk-adjusted returns for suppliers * Profitable leveraging for borrowers * Competitive market rates through dynamic reallocation * Conservative risk management with blue-chip collateral This remarkable performance validates our thesis about the demand for optimized lending within the Moonwell and Morpho ecosystems. It also highlights Block Analitica and B.Protocol’s robust risk management expertise and continued pursuit of further innovation. Proposed Renewal Terms Incentive Allocation: Total WELL Tokens: 18M WELL (reduced from 50M) Duration: 6 months (December 16, 2024 - June 16, 2025) Distribution: Flat allocation across three 2-month periods, distributed by and subject to the discretion of the Morpho DAO: * Months 1-2: 6M WELL * Months 3-4: 6M WELL * Months 5-6: 6M WELL Unchanged Parameters: Vault Ownership: Moonwell DAO Risk Curation: Block Analitica & B.Protocol Performance Fees: 15%, split between Moonwell DAO and Block Analitica / B.Protocol Timelock Period: 4 days Implementation If this proposal passes, the following actions will be executed: 1. Transfer 18M WELL tokens to the Moonwell Morpho URD contract 2. Continue existing distribution mechanism through merkle roots 3. Maintain current operational handling of incentives by the Morpho DAO Voting Yay: Approve the 18M WELL token grant for continued incentivization of Moonwell Flagship Vaults for 6 months. Nay: Reject the continuation of WELL incentives for Moonwell Flagship Vaults. Conclusion The Moonwell Flagship Vaults have become a cornerstone of Moonwell's lending ecosystem, delivering unparalleled market dominance, strong user adoption, and consistent TVL growth. Renewing this program aligns perfectly with Moonwell's mission to simplify lending for everyone while reinforcing our leadership on Morpho. With 18 million WELL tokens dedicated to liquidity incentives and a performance fee structure designed to increasingly benefit the Moonwell DAO as Vault TVLs grow, this proposal ensures long-term sustainability and rewards continued success. With over 18,500 depositors in Flagship Vaults and approximately $120M in TVL, this proposal represents a scalable and strategic approach to sustaining Moonwell’s momentum, maintaining market leadership, and advancing its mission to make onchain finance accessible, secure, and simple for all.

This proposal aims to introduce a new revenue stream for the Moonwell DAO by implementing Oracle Extractable Value (OEV) technology. By using RedStone’s solution, Moonwell can capture the extra value generated during liquidations, redirecting it back into the protocol reserves instead of being lost to third-party liquidation bots. The initial rollout will test the solution on the AERO market on Base, with plans to expand to other markets based on its success. RedStone will cover all associated costs, ensuring seamless and low-risk integration. ABOUT REDSTONE RedStone is the fastest-growing oracle in 2024. Our clients include leading DeFi protocols such as Morpho, Venus, Enzyme, Pendle, FraxLend, Euler, Silo, Gearbox, EtherFi, Ethena, Puffer, Renzo, Lombard and 100+ other clients. Our team has been supporting Base since day 1 mainnet launch and we are backed twice by Coinbase Ventures. RedStone specializes in the delivery of LST, LRT and other types of price feeds and is the leading BTCfi oracle as the creator of the only in-market Bitcoin Liquid Staking Oracle for Lombard, Solv, pumpBTC and others. RedStone’s mission is to enable DeFi protocols and dApp’s builders to reach their full potential with versatile, gas-optimized and robust price feeds delivered cross-chain. Our team consists of seasoned engineers with an average of 15+ years of dev experience and a hard-working BD & Marketing team supporting partner protocols at every step: conferences, Twitter spaces, targeted intros, etc. Our technology has been acknowledged by the leading figures in the crypto space, we are proud to be backed by the most renowned Web3 Entrepreneurs such as Stani Kulechov (Aave), Sandeep Nailwal (Polygon), Alex Gluchovski (zkSync), Emin Gün Sirer (Avalanche), Richard Ma (Quantstamp) and many more. ORACLE EXTRACTABLE VALUE OEV is a value that can be captured during liquidations. Liquidations usually generate profit thanks to bonuses intended to motivate multiple parties to send a liquidation transaction. The bonus is captured only by the first liquidator, therefore liquidators compete to place the transaction as early as possible, ideally just after the Oracle update. Effectively it’s a race to liquidate straight after the price update is delivered on-chain that triggers liquidation of the position. The idea behind OEV is to redirect the value captured by the MEV operator to the parties controlling price updates - Oracles and the Protocol. For every price update that may trigger a liquidation an auction is created and the collected payments are shared between both the source of data (Oracle) and the protocol itself. This OEV switch would direct the 50% Moonwell split of OEV back to the AERO market as reserves, generating more revenue for the protocol. The suggested solution includes the implementation of an auction with an MEV search solution on Base within the price feed liquidating a position. The implementation is done in a way that doesn’t interfere with the existing code of the Moonwell protocol minimizing any potential risks and side effects. It also means that traditional liquidations will still take place if there are any potential edge cases or execution failure scenarios where the auction might not perform as expected. We have successfully implemented the above flow with one of the largest lending protocols in DeFi and are rolling it out with the next protocols currently. COMPETITIVE EDGE FOR MOONWELL The implementation would make Moonwell more secure and resistant to bad debt, allowing faster liquidations via dedicated auctions. The value captured via the OEV mechanism would be redirected into the Moonwell pool increasing the atractiveness of rates in comparison to other lending markets. We propose a 50/50 split of the value captured between the protocol and the other part covering infrastructure & maintenance costs. RedStone will cover all the costs associated with setting up, testing and monitoring the solution and will be in close contact with core Moonwell contributors for any further requests or suggestions. NEXT STEPS We suggest the first rollout of the solution on Moonwell’s AERO core market and after the first successful period expanding to other markets as Moonwell sees fit. AERO seems like a good fit with the number of positions and volatility of the asset. The success will be determined by the number of successful OEV liquidations and the total value captured by the protocol. The suggested planned rollout includes: Phase 1: Initial setup and integration (2 weeks) Phase 2: Testing period on AERO market (4 weeks) Phase 3: Review and assessment of results (2 weeks) Phase 4: Expansion to other markets based on results (TBD)

Proposal Summary This proposal seeks approval from the Moonwell community to replace our current bug bounty provider, Immunefi, with Code4rena. The goal is to improve the quality and effectiveness of Moonwell's bug bounty program, reduce low-value submissions, and leverage a more robust process to better protect the protocol and its users. Context & Background Moonwell has been using Immunefi as its primary bug bounty provider since early 2022. While Immunefi offers a wide network of security researchers, Moonwell contributors have consistently received lower-quality submissions, primarily focusing on informational findings that do not present tangible risks to the protocol. This has led to unnecessary administrative overhead, with the majority of reports either being irrelevant or not impactful enough to justify significant payouts. To address these challenges, I would like to propose transitioning to Code4rena, a bug bounty program that focuses on higher quality submissions. Moonwell's new bug bounty program with Code4rena would retain its maximum bounty payout of $250,000. Rationale for the Change 1. Higher Quality Submissions: - Code4rena's approach emphasizes quality over quantity, focusing exclusively on Critical and High severity vulnerabilities with mandatory runnable Proof of Concepts (PoCs) - The platform maintains strict criteria for what constitutes Critical and High severity issues, ensuring only impactful vulnerabilities are reported - With Code4rena, the Moonwell community can focus on incentivizing high and critical severity vulnerabilities, significantly reducing noise from low-value submissions 2. Robust Judging Process: - Code4rena provides a comprehensive appeals process with independent judges when needed - Sponsors have 7 days to review and assess submissions, with clear guidelines for assessment - Wardens can appeal sponsor decisions through a structured process with independent judges 3. Clear Scope Definition: - Code4rena enforces strict scope boundaries, explicitly excluding common non-issues like best practices, feature requests, and basic economic attacks - The platform has clear definitions of what constitutes Critical and High severity issues, helping reduce disputes 4. More Flexible and Transparent Payouts: - Code4rena offers transparent pricing for bounties that can be adjusted based on the Moonwell community’s budget and needs - The platform includes provisions for delayed fixes, ensuring wardens are fairly compensated even if fixes are implemented later - Payment terms are clearly defined based on timing of fix implementation 5. Efficient Resource Utilization: - By focusing only on Critical and High severity issues, Moonwell contributing teams can concentrate on addressing substantial vulnerabilities - The clear scope and severity definitions help reduce time spent on assessing low-impact submissions Proposal Details Current Provider: Immunefi Proposed Provider: Code4rena Key Changes: - Replace Immunefi with Code4rena for Moonwell's bug bounty program. - Focus on high and critical severity vulnerabilities, with discretionary tips for informational findings. - Leverage Code4rena's impartial judges for severity assessments. Voting Options For: Replace Immunefi with Code4rena as Moonwell's bug bounty provider. Against: Retain Immunefi as Moonwell's bug bounty provider.

Proposal: Add pufETH Market to Moonwellon Base --- Introduction Puffer Finance proposes listing pufETH, a unique liquid restaking token, as collateral on Moonwell. This proposal outlines the benefits of listing pufETH for both Moonwell users and the broader DeFi ecosystem. General Token Asset Name: pufETH A description of the project and the token Puffer Finance proposes listing pufETH as a collateral asset on Moonwell’s Base network. pufETH offers unique liquid restaking properties, combining Ethereum staking rewards with additional benefits from its integrations across DeFi platforms. Its listing will enhance Moonwell’s liquidity and borrowing options while aligning with Puffer Finance's innovative DeFi integrations. Benefits to the Moonwell Community\* Unique Liquid Restaking: pufETH offers users the combined advantages of staking ETH on Ethereum 2.0 and earning additional rewards through restaking. This innovative feature differentiates pufETH from traditional stETH tokens. Significant Adoption and Integration: pufETH boasts a robust presence across various DeFi platforms, including Curve, Pendle, Zircuit, Pencil, and Karak. Its wide adoption showcases its utility and demand within the DeFi landscape. Strong DeFi Metrics: Puffer Finance currently maintains an impressive Total Value Locked (TVL) of $1.39 billion in ETH and an additional $641 million across DeFi integrations, reflecting the project's growing user base and economic activity. Enhanced Liquidity: pufETH's $70million TVL in its pufETH-wstETH pool on Curve demonstrates its ability to attract liquidity, providing Moonwell users with a readily borrowable asset. Security and Trust: Puffer Finance prioritizes security by undergoing multiple audits by renowned firms, ensuring the safety of user funds. This commitment to security aligns perfectly with Moonwell's values. Decentralization Champion: Puffer's development of anti-slashers for PoS fosters permissionless validator participation, strengthening the decentralization of Ethereum's staking ecosystem. Industry-Leading Backing: Prominent investors like Binance Labs, Brevan Howard, Avon Venture (Fidelity), Franklin Templeton, Coinbase Ventures, and Kraken Ventures support Puffer Finance. This backing signifies the project's potential and long-term vision. Resources (Website, Social Media Links, and docs) Website https://www.puffer.fi/ Twitter https://x.com/pufferfinance Docs https://docs.puffer.fi/ Social channel metrics (size, activity, and growth) Twitter: 330,000 followers, active with daily engagement Discord: 92,500 members, growing steadily with daily community participation and 10%+ retention Social channel metrics (size, activity, and growth)\* Twitter: 330,000 followers, active with daily engagement Discord: 92,500 members, growing steadily with daily community participation and 10%+ retention Codebase & On-chain Activity Provide a Github repository for the underlying token contracts https://github.com/PufferFinance/Deployments-and-ACL/blob/main/docs/deployments/base.md Provide Basescan/Moonscan/Etherscan links with verified contracts: https://basescan.org/address/0x23dA5F2d509cb43A59d43C108a43eDf34510eff1 Conclusion Listing pufETH on moonwell will offer users the ability to borrow against an asset that provides staking and restaking rewards, potentially increasing moonwell’s appeal and liquidity. Given Puffer Finance’s substantial TVL, extensive DeFi integrations, security audits, and backing by top-tier investors, this proposal presents a strategic opportunity for Moonwell to align with a leading-edge DeFi project and expand its asset offerings on Base

Summary This proposal suggests adding a Mountain Protocol wrapped USDM (wUSDM) market to Moonwell on Optimism. This recommendation comes as an opportunity to add a USD-denominated yield-bearing asset fully backed by US Treasuries, hence creating a more capital-efficient lending market that will ultimately bring great benefits to both Moonwell and its users. This initial post aims to gather feedback based on community input, updating any needed information. Once the Snapshot vote is conducted and if successful, we will engage with Gauntlet to perform the risk assessment and obtain the initial risk parameters. Motivation USDM, the first product offered by Mountain Protocol, is a regulated, permissionless, and yield-bearing stablecoin, fully backed by US Treasuries. It is designed to maintain a consistent value pegged to the US dollar, making it a reliable digital asset for transactions and savings. Peg is kept by having primary customers buy/sell USDM at $1 and by the US Treasuries held as collateral for USDM on a bankruptcy remote SPV: USDM Reserves Ltd. USDM follows a proven model used by all the well-known stablecoins, rewarding holders daily through a rebasing mechanism, currently at a 5% APY. The wrapped USDM (wUSDM), on the other hand, is built as a value-appreciating token that ensures its price increases reflect all the rewards that USDM has generated over time. This token was created to address integration challenges with protocols that were not built for rebasing assets. Mountain Protocol is a regulated entity by the Bermuda Monetary Authority (Class F license #202302512). This regulatory oversight ensures a high-standard of compliance and safety for USDM holders. Mountain Protocol has received funding from prominent investors in the crypto space, such as Coinbase Ventures, Multicoin Capital, Castle Island Ventures, among others. Benefits to the Moonwell Community Borrowing at a discounted rate: Using wUSDM as collateral would allow users to reduce their net borrow rate thanks to its native yield (currently 5% APY). Leveraged exposure to wUSDM yield: Users would be able to loop and leverage their lending of wUSDM by borrowing other non-yield-bearing tokens which would be automated with other integrations such as Contango, increasing Moonwell TVL and revenue. Market Diversification: wUSDM would be both the first RWA and yield-bearing stablecoin to be onboarded into Moonwell, expanding Moonwell’s offerings to users while also attracting USDM holders seeking for an added yield. This would additionally help Moonwell align with Optimism's intention to expand activity around yield-bearing assets. Following on from the last item, it is worth noting that USDM has been whitelisted at inception for the ‘Optimism Dominance in Yield-Bearing Assets’ campaign, which includes a Mission dedicated specifically to protocols including YBAs as collateral. This means that a wUSDM market could have OP incentives subsidizing both lending and borrowing of wUSDM, which would also give more room for looping and leveraging to users. Resources and Socials Mountains Protocol Website Docs Twitter LinkedIn One pager Deck Github Terms and conditions Proposal Author Information Martin Carrica - CEO and Co-founder of Mountain Protocol Telegram: @mcarrica Twitter: @mcarrica Linkedin: Martin Carrica - Mountain Protocol | LinkedIn Julian Marcos - Head of DeFi Partnerships Telegram: @julimarcoz Twitter: @julimarcoz Market Risk Assessment Market Cap: US$ 55.2M total (US$ 5M on Optimism) Maximum: US$ 156.1M (April 2nd, 2024) Minimum: US$ 43.2M (August 7th, 2024) Volatility: N/A. USDM price has been $1 with the expected volatility around $1 before arbitrage opportunities offset gas costs. Total DEX Liquidity Across all Chains: 40.6M Main Pools by Liquidity on All Chains: DeGate on Ethereum USDM, total liquidity of US$ 10M Curve sDAI/USDM pool on Ethereum, total liquidity of US$ 14.5M Curve USDM/USDC pool on Arbitrum, total liquidity of US$ 8.1M Curve USDM/USDC pool on Optimism, total liquidity of US$ 5M Curve USDM/USDC pool on Polygon PoS, total liquidity of US$ 1.2M Curve USDM/3crv pool on Ethereum, total liquidity of US$ 820k Curve USDM/USDC pool on Base, total liquidity of US$ 510k Velodrome wUSDM/wstETH on Optimism, total liquidity of US$ 450k Uniswap v3 wUSDM/wstETH pool on Arbitrum, total liquidity of US$ 82k Security and Decentralization Token Addresses (same on all chains): USDM / wUSDM (ERC-4626) Age of token: 387 days (279 on Optimism) Amount of holders: 3289 (113 on Optimism) Number of transactions to date: USDM: Ethereum: 7,628 / Optimism: 2,506 wUSDM: Ethereum: 4,306 / Optimism: 1,842 Privileged Roles in the Token Contract: Docs Admin: Mountain Protocol uses the Admin role to grant and revoke roles (DEFAULTADMINROLE, MINTERROLE, BURNERROLE, BLOCKLISTROLE, ORACLEROLE, UPGRADEROLE, PAUSEROLE) using OpenZeppelin Defender + safe multisig approval (4/7): 0x313d5B7EfDcd84e8a52D425282B03860e9354d74. Details regarding the signers are not shared due to OpSec reasons. Owner: The address assigned as the owner during the contract initialization. This address is given the DEFAULTADMINROLE and can manage other roles. Minter: The MINTER_ROLE can mint new tokens. Addres assigned this role (Fireblocks MPC vault) can create new tokens by calling the mint function. Burner: The BURNER_ROLE can burn tokens from specific addresses. Address assigned this role (Fireblocks MPC vault) are allowed to manage the destruction of tokens to reduce the total supply. Pausable: The PAUSE_ROLE allows accounts to pause and unpause all token transfers. This functionality is inherited from PausableUpgradeable. Blacklist: The BLOCKLIST_ROLE has the ability to block and unblock addresses. Blocked addresses cannot send tokens, and only those with this role can modify the blocklist. Fallback function: No fallback function is defined in this contract. Fixed supply: No, the supply is not fixed. The contract allows minting and burning, so the total supply can increase or decrease. Upgradability: Yes, this contract uses the UUPSUpgradeable proxy pattern. Only addresses with the UPGRADE_ROLE can upgrade the contract. Role has not been assigned to any address. If it were, it would be exclusively for the Mountain Protocol team. Access is granted by Admin (4/7 multisig): 0x313d5B7EfDcd84e8a52D425282B03860e9354d74. Full contract is upgradable with no timelock, similar to other centralized stablecoins and all upgrades are first tested on testnet before formal upgrades. We do not expect upgrades to the SC given its simplicity. Rebasing: This contract implements a dynamic supply mechanism where balances are represented in shares. The token uses a rewardMultiplier to convert between shares and tokens, which could be seen as a rebasing-like mechanism. wUSDM is a value-appreciating token that has a deterministic price path based on the USDM rewards rate, utilizing a tokenized vault standard ERC-4626. Wrapped: Yes, wUSDM is the wrapped version of USDM. Test Suite with Code Coverage: 1 / 2 / 3 Chronicle Oracle Price Feed - We will also be providing a Chainlink Price Feed as soon as it goes live in the upcoming days (currently under review). Audit Reports Bug Bounty Program Monthly Attestations Risk Assessment (BlueChip) Risk Assessment (Steakhouse)

General Information Asset Name : Wrapped Super OETH (wsuperOETHb) Address: 0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6 Project & Token Description: * Super OETH (superOETHb) is the next iteration of OETH, a superior LST with an extremely tight 1:1 peg and high yields thanks to a combination of the OETH AMO and DVT direct staking through SSV/P2p. superOETHb yields are able to reach double digit levels, making it an exceptionally perfect token for lending and borrowing against ETH. superOETHb was built reusing 90% of the code from OETH, for which the codebase has already been audited 12+ times. * Super OETH is the first token in a new category of liquid staking: Supercharged LSTs. Supercharged LSTs will have materially higher yield while being designed for L2s, with a similar risk profile to mainnet LSTs. Ethereum liquid staking is amplified with chain-specific, auto-compounded incentives. Deep concentrated liquidity pools guarantee exits with minimal costs - users will never lose ability to convert back to ETH. * wsuperOETHb is a ERC-4626 tokenized vault designed to accrue yield in price rather than in quantity. The wsuperOETHb to superOETHb exchange rate can be read from the contract (function number 16), or via the superOETHb dapp. * Current exchange rate as of 10/3/24: 1 wsuperOETHb = 1.01410462 superOETHb Benefits to Moonwell Community: * This new Super OETH market would lead to additional increased TVL for Moonwell, additional revenue to the Moonwell Protocol and DAO from active loans and liquidations, and will attract a wider user base. * We’ve noticed many LSTs trade below their peg due to DEX fees and slippage, and to reflect the time value of money. LSTs that consistently trade below peg effectively impose a hidden exit fee - certain LSTs often trade ~0.25% below peg, meaning it takes three weeks of staking to break even. This may be ok for long-term holders, but is terrible for projects who plan to integrate the LSTs, or for users who plan to loop LTSs for additional yield. This is not the case with OETH, and it will not be the case with Super OETH. * Using Super OETH on Moonwell will produce significantly higher yield than the other supported LSTs and will have a near perfect ETH peg. Utilizing a concentrated Aerodrome liquidity pool with the tightest tick possible helps make Super OETH the most pegged L2 LST currently available, while being able to reach double digit yields. * Super OETH has a native yield of 15.10% APY - at the current ETH borrow rate on Moonwell Base of 0.7%, one loop at 75% LTV would now yield you 25.90% APY. After 5 loops that number jumps to 48.05%, or 50.79% when including the WELL emissions. These figures are not possible with the LSTs and LRTs currently supported on Moonwell. Our vision for Super OETH is for it to become both the most trusted LST, and also the most lucrative for those seeking to use an LST for leveraged staking. Performance Super OETH has seen incredible growth since launch, growing from $7m to over $300m over the last few weeks. Super OETH has reached the number one spot by TVL on Defillama for yield projects on Base and accounts for a large amount of the Aerodrome Slipstream TVL. Market Risk Assessment Market cap of the token: $322m (138k ETH) Total supply: 138k superOETHb The largest CEX/DEX * Super OETH is listed on 3 Aerodrome markets Emission schedule: No set emission schedule Decentralization List the top token holders: Largest contracts: - 0x6446021f4e396da3df4235c62537431372195d38- Aerodrome deposit contract - 0x6fb655476fdcfb9712dd200308d941a1c6d1119e- 2nd Aerodrome deposit contract - 0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6- wsuperOETHb contract List all of the privileged roles in the token contract: Certain functions can be called by Origin Guardians - Guardians use a 2 of 8 multisig with limited powers that can be found in the governance section of the superOETHb docs. All other necessary protocol powers require 5 of 8 signatures. Is the token pausable?: Yes Does the token have a blacklist?: No Smart Contract Risks Provide Basescan links with verified contracts: - Super OETH Contract: 0xDBFeFD2e8460a6Ee4955A68582F85708BAEA60A3 - Wrapped Super OETH Contract: 0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6 Give the age of the token in days: 60 days Provide the number of transactions in the contract to date: there are 17,000+ Security Posture What audits, if any, were performed? * superOETHb and wsuperOETHb were built reusing 90% of the OETH code, which was built reusing 95% of the OUSD code, of which many audits have been done since 2020. All OETH audits can be found in the audits section of the OETH docs. We have recently retained yAudit to look at our PRs as we code, and OpenZeppelin is also held on retainer to review 100% of the OETH and OUSD smart contract changes. Does the project have an active bug bounty program? * Origin maintains an active bug bounty with rewards ranging in size from $100 OUSD for minor issues to $1,000,000 OUSD for major critical vulnerabilities. The bug bounty program is currently administered by Immunefi, where Origin maintains a median resolution time of 6 hours. Provide emergency contacts with their estimated response time/availability * The Origin team is available 24 hours a day via Discord. On March 10 2023 when USDC depegged from the dollar (and therefore from OUSD), it took the Guardians/Origin engineers about 4 minutes to notice, and 16 minutes to start the process of moving the funds to a safer strategy. superOETHb and wsuperOETHb will have no exposure to stablecoins nor any other pegged asset aside from WETH. * Please also contact the Origin support team directly if there are any issues and someone from the Origin team will respond promptly: support@originprotocol.com List additional security and formal verification tools used in the development * We mostly manually verify deployments before the multisig tx is created. We use Sol2uml to verify deployed contracts. We also have Slither as part of our CI. We also have some scripts in our repo that we use as needed. List all monitoring services used by the token, if any. * We use an in-house solution based on Subsquid as our indexer and Grafana. We also add custom alerts on Tenderly for critical events. Upgradability Is it upgradeable?: Yes, superOETHb is upgradable. Who is authorized to make an upgrade? Can an upgrade happen instantaneously or is there a time-lock delay? - All Super OETH contracts are owned by the Timelock contract. All upgrades will have to go through Timelock. The Timelock is controlled by the 5 of 8 multisig mentioned above. Signers are trusted contributors who are actively involved in the day-to-day management of the protocol and all have a vested interest in helping the protocol succeed. The initial timelock was set to 60 seconds to allow the protocol to ramp up quickly, but it has been increased to 48 hours. - Which components are upgradeable?: The whole token contract can be upgraded. - How does the upgradeability design work? Who manages it and how are upgrades performed?: All Super OETH contracts are owned by the Timelock contract. All upgrades will have to go through Timelock. The timelock is controlled by the 5 of 8 multisig mentioned above. - Does it emit an event when the implementation is updated? - Yes, Upgraded(address indexed implementation) Oracle Assessment Please view the discussion post for more information on the oracle How is the asset wrapped, staked, or otherwise created? - superOETHb can be minted from the contract, dapp, or swapped into from one of the above Aerodrome pools. Wrapped superOETHb can be created at any time using the 4626 contract, or the superOETHb dapp. - On what network does the underlying asset exist?: The underlying asset exists on Base, with a portion of the yield coming from mainnet beacon chain staking. - 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? - The only way that users can obtain superOETHb is by first providing the protocol ETH or WETH. Additional superOETHb may be minted by the protocol AMO, but these tokens are owned by Origin Protocol and only ever enter circulation when someone provides ETH to the Aerodrome pool. Is there a way to verify proof of reserves (PoR) on the same network as the market? - The protocol mainly holds WETH in the Vault, Aerodrome pool and Bridged wOETH. - The bridged wOETH holds ETH on the mainent in the validators. The Vault holds WETH until it deposits it somewhere. The Aerodrome pool has WETH as part of its liquidity. What specific events might cause the price to “depeg” or no longer be the same as the price of the underlying asset? - If more circulating superOETHb was supplied to the Aerodrome pool than the amount of ETH in the pool, a depeg could theoretically occur. This is mitigated by the question above. - OETH validator slashing may cause a depeg. However, the size of the slash will likely be smaller than the underlying superOETHb yield, so in this case the yield for superOETHb will temporarily be smaller. Please see the forum discussion for more detail on this proposal

Token Asset Name - * wrsETH A description of the project and the token - * KelpDAO (https://www.kelpdao.xyz/restake/) is one of the largest liquid restaking protocol built on top of the Eigen Layer. Restakers on Kelp get access to multiple benefits like restaking rewards, staking rewards, and DeFi yields. Latest stats: * USD 600 Mn+ (~253k Eth) TVL - 50K restakers onboarded - Live across Ethereum mainnet and 9 L2s such as Base, Arbitrum, Optimism, Scroll, Linea etc. - Withdrawals are enabled on Kelp and rsETH holders can unstake rsETH for any of the LSTs and ETH on KelpDAO on Ethereum - Bridging of rsETH across L2s is facilitated by infrastructure by LayerZero * KelpDAO has undergone multiple security audits by top-tier audit firms including Sigma Prime, Code4rena, and MixBytes. More about KelpDAO’s security here: Kelp DAO Audit reports Benefits to Moonwell Community * From Moonwell’s perspective, any new asset is a source of additional revenue and expands the ecosystem as a whole. LRTs are a great use case for Moonwell as it is one of the fastest growing ecosystems. * With wrsETH being one of the top LRTs, integrating it as a collateral asset will create new demand on Moonwell. This will be beneficial for both Moonwell and Kelp. In addition, wrsETH depositors will accumulate additional Kelp miles and EigenLayer points. Use cases for wrsETH market on Moonwell * Having wrsETH on Moonwell will allow users to earn Kelp Miles and Eigenlayer points while supplying and borrowing against wrsETH. Resources (Website, Social Media Links, and docs) * Website: https://kelpdao.xyz/restake/ * Documentation: Introduction | Kelp * Audits: Audits | Kelp * Discord: Please use the link on the forum, unable to add it here * Twitter: Kelp DAO (@KelpDAO) / X The proposal author’s contact information * Proposer - Aditya Deorukhkar * Role - DeFi & Partnerships team member, KelpDAO * Email - aditya@kelpdao.xyz * Telegram - @Hedged_Adi Market Risk Assessment Market cap of the token * 354 wrsETH on Base - (Basescan page) * 250k+ rsETH on Ethereum Mainnet - (Etherscan page) * 544 wrsETH on Optimism - (Optimistic scanner page) Total supply * 354 wrsETH on Base - (Basescan page) * 247k+ rsETH on Ethereum Mainnet - (Etherscan page) * 544 wrsETH on Optimism - (Optimistic scanner page) The largest central and decentralized exchanges where the token is listed and its respective liquidity * Aerodrome on Base - wrsETH pools (CL & AMM) - $2.2Mn TVL (0xA24382874A6FD59de45BbccFa160488647514c28) * On Ethereum Mainnet - * Total DeFi TVL $50Mn+ * Pools on Balancer, Uniswap, Curve and more * Optimism - * Balancer - wrsETH<>WETH pool - link * Velodrome - wrsETH<>WETH pool - link Emission schedule - NA Decentralization List of rsETH Holders on Mainnet List of wrsETH holders on Base List of wrsETH holders on Optimism Codebase & On-chain Activity Kelp’s Docs - https://kelp.gitbook.io/kelp/rseth-smart-contracts wrsETH on Base - https://basescan.org/address/0xEDfa23602D0EC14714057867A78d01e94176BEA0 * Age of the token - 4 Months old on Base, 9 months on Ethereum mainnet, * 20K+ Transactions on Base so far with wrsETH Security Audits: Kelp’s smart contracts are audited by Sigma Prime, MixBytes, and Code4rena- * Sigma Prime Report: https://kelpdao.xyz/audits/smartcontracts/SigmaPrime.pdf * MixBytes: https://kelpdao.xyz/audits/smartcontracts/mixbytes.pdf * Code4rena: https://code4rena.com/reports/2023-11-kelp Does the project have an active bug bounty program? - Kelp has partnered with Immunify to create a $250K Bug bounty program - link Provide emergency contacts with their estimated response time/availability * On TG - @saurabhj016, @galacticminter @Hedged_Adi - within an hour Oracle Assessment We are working with ChainLink for an Oracle on Base - * RSETH / ETH - 0xd7221b10FBBC1e1ba95Fd0B4D031C15f7F365296 * rsETH / ETH Exchange Rate - 0x99DAf760d2CFB770cc17e883dF45454FE421616b * On Optimism with ChainLink as well- * RSETH/ETH - 0x03fe94a215E3842deD931769F913d93FF33d0051 Yes the asset is a wrapped version of rsETH Average Daily Trading Volume: 1. wrsETH on Base - Avg Daily trading volume per day - $8.8K/day (Per day average based on last 7 days - DeXScreener) 2. wrsETH on Optimism - Avg Daily trading volume per day - $20K/day (Per day average based on last 7 days - DeXScreener) Top 10 Token Holders: The post does not provide a list of the top 10 token holders, the percentage held by each, and tags if known. 1. List of top 10 wrsETH holders on Base 2. List of top 10 wrsETH holders on Optimism Privileged Roles: Timelock proposer - https://app.safe.global/settings/setup?safe=eth:0xb3696a817D01C8623E66D156B6798291fa10a46d Kelp Manager - https://app.safe.global/home?safe=eth:0xCbcdd778AA25476F203814214dD3E9b9c46829A1 operators - * 0x7AAd74b7f0d60D5867B59dbD377a71783425af47, * 0xF2099c4783921f44Ac988B67e743DAeFd4A00efd, * 0xa7cDC32Cb1cc6E705C9F386441F0B1f6df44a963 None of the privileged roles have custody of user funds at any point. The timelock proposer is a community multisig responsible for upgrading contracts after a 10-day timelock delay. This proposer has doxxed signers from the broader community, not just Kelp. Manager is responsible for changing configurations of contracts. This includes the frequency with which staking happens etc. Operators are responsible for operations at a smart contract level. This include making calls to auto-compound rewards, stake ETH, process withdrawals etc- Pausability All Kelp contracts are pausable by the manager multisig. This is done so the team can respond to emergencies if any. However, it is only the Timelock Proposer that can unpause the contracts. This means that the team can only pause the contracts to prevent any damage etc. The resumption can only happen after the community leaders come together and agree it's safe to resume the protocol. There is no blacklisting mechanism of any sort at Kelp. Upgradability As mentioned above, only the timelock contract has the power to upgrade the contracts. The timelock delay is 10 days and the proposer is the community multisig. Chainlink Oracle Price Feed Base - RSETH / ETH - 0xd7221b10FBBC1e1ba95Fd0B4D031C15f7F365296 rsETH / ETH Exchange Rate - 0x99DAf760d2CFB770cc17e883dF45454FE421616b Optimism - RSETH / ETH - 0x03fe94a215E3842deD931769F913d93FF33d0051 Depeg Events There is no specific exclusive event for depegging. The Llama Risk Report covers some risks that apply to most staking pools. You can find the report here Collateral Risk Assessment - Kelp DAO Restaked ETH (rsETH) - Llama Risk

Summary I propose the addition of a cbBTC (Coinbase wrapped BTC) market to Moonwell’s Base deployment. This proposal aims to initiate the process of listing cbBTC, allowing the Moonwell community and risk managers like Gauntlet to prepare for its imminent launch. By positioning Moonwell as an early adopter of this significant asset, we align ourselves with Base’s vision of becoming a major hub for Bitcoin DeFi and further catalyzing the growth of the world’s largest onchain economy. Background cbBTC is an upcoming wrapped Bitcoin derivative expected to launch on the Base network very soon. It aims to become the dominant Bitcoin variant on Base, replacing WBTC as the trusted solution for Bitcoin DeFi following the announcement of WBTC custodian BitGo’s new ownership structure. Jesse Pollak, creator of Base, has emphasized his desire to build a massive Bitcoin economy on the network. Objectives 1. Initiate the listing process for cbBTC on Moonwell. 2. Prepare the Moonwell community and risk managers for the asset’s launch. 3. Ensure Moonwell is among the first onchain finance apps to support cbBTC on Base. Benefits to the Moonwell Community 1. Early Adoption Advantage: Position Moonwell as a leader in supporting Coinbase’s onchain initiatives and work to build substantial liquidity for cbBTC early in the asset’s life cycle. 2. Market Diversification: Expand Moonwell’s offerings, introducing the first Bitcoin-based lending market on Moonwell’s Base deployment. 3. Increased TVL and Revenue Potential: Leverage the popularity of Bitcoin collateralization, as evidenced by WBTC’s performance on Moonbeam, which is the largest Moonwell market by TVL on the network. 4. Strategic Alignment: Support Base’s vision of becoming a hub for Bitcoin DeFi and further building out of the onchain economy. Implementation Roadmap 1. Community Engagement Gather feedback and refine the proposal based on community input. Update with new information about cbBTC as it becomes available. 2. Preliminary Approval Conduct a Snapshot signal vote vote to gauge community support. 3. Risk Assessment Engage Gauntlet to perform risk analysis if Snapshot vote is successful and once cbBTC is deployed onchain. Develop initial risk parameters based on this assessment. 4. Formal Onchain Proposal Submit a Moonwell Improvement Proposal to activate the cbBTC market. Incorporate Gauntlet’s recommended initial risk parameters. Token Details Asset Name: cbBTC (Coinbase Bitcoin) Network: Base Purpose: To serve as a liquid, trusted Bitcoin representation on Base, enabling people to utilize their BTC holdings in the onchain economy. Additional Information Websites: - Coinbase: https://www.coinbase.com/home - Base: https://base.org Social Media: - Coinbase: https://x.com/coinbase - Followers: 6M Base: https://x.com/base - Followers: 810k Proposal Author Name: coolhorsegirl Email: coolhorsegirl@tally.xyz Role: Delegate @ Moonwell Relationship with cbBTC: No relationship Market Risk Factors As cbBTC is not yet live onchain, we currently lack specific data for traditional risk metrics. However, as a community we recognize the importance of these factors in assessing the asset’s suitability for listing on the Moonwell Protocol. I commit to providing additional market risk information as soon as it becomes available post-launch. Key metrics will include: Market Capitalization Total Supply and Circulating Supply CEX/DEX Trading Volume and Liquidity Depth Oracle Information Price Volatility Number of Holders Distribution of Holdings Slippage Analysis on DEXs Conclusion While we eagerly await cbBTC’s launch on Base, initiating this proposal now is critical to cementing Moonwell’s position as a leader in the rapidly evolving onchain economy. This proactive approach not only demonstrates our commitment to innovation but also ensures we are fully prepared to integrate cbBTC swiftly and safely once it goes live. The addition of cbBTC to Moonwell represents more than just another new market—it’s a strategic move that aligns our community with Base and our protocol with the future of Bitcoin DeFi. By being among the first to support cbBTC, we have the opportunity to help shape the landscape of onchain finance and further establish Moonwell as a cornerstone of the Base ecosystem.

Hello Moonwell Community, I’m happy to present the following proposal for a new addition to Moonwell’s Base deployment: EURC, a euro backed stablecoin developed by Circle. The EURC token was recently deployed on Base as of August 1st. As such, I believe it would be beneficial to create an asset listing for it and be one of the first lenders to offer EURC access. General Euro Backed Stable Coin (EURC): EURC is Circle’s Euro-Backed stablecoin, one of the first mainstream euro stablecoins to be released. EURC is issued by Circle and alongside Circle’s flagship token, USDC. EURC is launching across multiple ecosystems, notability: Ethereum, Avalanche, Solana, and Stellar. The euro is one of the most significant fiat currencies in the current traditional financial system. The EURC is regulated and may be redeemed 1:1 for euros. Additionally, the EURC can be used for cross-border payments. Benefits to the Moonwell Community Listing the EURC stablecoin on Moonwell would be beneficial to the protocol by expanding the range of stablecoin options and enhancing protocol liquidity. Since the stablecoin is backed by the euro and is issued by Circle, it falls within Moonwell’s standards for compliance and security. Resources and Socials EURC FAQ Website : https://www.circle.com/en/eurc Docs: https://developers.circle.com/stablecoins/docs/eurc-on-main-networks Twitter: https://x.com/Circle Discord: Link is in the original discussion post. LinkedIn: https://www.linkedin.com/company/circle-internet-financial/ Circle Social Channels Metrics (Size, activity and growth). Twitter Following: 184000 followers Discord Community Size: 12315 Proposal Author Info: Name: Darren Mims Telegram: Mims0x LinkedIn: https://www.linkedin.com/in/darren-mims-2ab421206 Twitter: https://x.com/0xMims Delegate Address: 0x657D07095b082BB71ebD93F549f407A97f49094F Relationship with Token: I am a Moonwell community member and a delegate with no direct affiliation with Circle Internet Financial or any Circle-affiliated parties. Market Risk Assessment Current Market Cap of EURC on Base Mainnet EURC market capitalization: $7M on Base Mainnet MIN/MAX Market capitalization in the last 6 months: Minimum (At launch): $0 Maximum: $7M on Base Mainnet Total supply across all chains: Minimum (At launch): $0 Maximum: $41M across all Liquidity on exchanges: Asset currently lacks DEX support on Base. Proof of Assets: Volatility: [Requesting @Gauntlet's help for this] Average Daily Trading Volume: $485,666.667 since launch Decentralization Token Contract: 0x60a3E35Cc302bFA44Cb288Bc5a4F316Fdb1adb42 Privileged Roles in Token Contract: * Admin/Implementation Owner: The admin role has control of the contract, including the ability to upgrade implementation and change the admin address. The admin can transfer to a new address with the ‘changeAdmin’ function. The admin may also upgrade implementation of the proxy contract with ‘upgradeTo’ and ‘upgradeToAndCall’ functions. * Initial Admin Setup: During the deployment of the contract, the deployer is set as the initial admin. * Pauser: The entire FiatToken contract can be frozen in case of a critical issue by the Pauser role. * Owner: The owner (or admin) is defined in the implementation contract and can reassign all other roles. * Blacklister: This role has the privilege of defining what addresses can be blacklisted from transferring/receiving EURC tokens. * MasterMinter: Controls the list of minters and how much each is allowed to mint in EURC. As each minter mints new tokens their minting allowance decreases, after a certain threshold the MasterMinter decides to increase the allowance. Distribution/Top Holders: According to Bubblemaps.io the majority of the token is split between two wallet addresses: * 0x3b5821672af876193bbce324d93b13c3d753d2a8 * 0x9066d3cf60d9f7b705026417e8e533b424bc3d48 Blacklist Functionality: HAS A BLACKLIST FUNCTION. Like USDC, EURC is issued and redeemed in accordance with Circle’s blacklisting policies. As such, Circle has the right to block the transfer of USDC to and from addresses onchain in extraordinary circumstances. Smart Contract Risks Codebase and onchain activity: * Github Repo * Token contract * EURC Testnet information * Total transactions: 2,478 * Age of token in days: 16 Security Posture: Due to the nature of the Circle Mint account and its systems. This information and its subsequent findings are not shared publicly. Users may visit the canonical USDC/EURC Github for each chain, but the actual audits are not circulated publicly for a variety of reasons. Upgradability: * Is it upgradeable: Yes * Upgrade Process: The admin of the contract is permitted to upgrade the contract. * Authorized Parties: Owner/Admin role of the contract. Oracle Assessment Here is the acquired Chainlink oracle address for $EURC: 0xDAe398520e2B67cd3f27aeF9Cf14D93D927f8250 Risk Manager Assessment For this section, I request the help of @gauntlet or @wardenfinance or any other parties to provide risk guidelines and parameters, please.

Kelp DAO is seeking community support for adding its Liquid Restaking Token, wrsETH, to Moonwell Markets on Base and Optimism. General Token Asset Name - * wrsETH A description of the project and the token - * KelpDAO (https://www.kelpdao.xyz/restake/) is one of the largest liquid restaking protocol built on top of the Eigen Layer. Restakers on Kelp get access to multiple benefits like restaking rewards, staking rewards, and DeFi yields. Latest stats: * USD 700 Mn+ (~256k Eth) TVL - 50K restakers onboarded - Live across Ethereum mainnet and 9 L2s such as Arbitrum, Optimism, Base, Scroll, Linea etc. - Withdrawals are enabled on Kelp and rsETH holders can unstake rsETH for any of the LSTs and ETH on KelpDAO on Ethereum - Bridging of rsETH across L2s is facilitated by infrastructure by LayerZero * KelpDAO has undergone multiple security audits by top-tier audit firms including Sigma Prime, Code4rena, and MixBytes. More about KelpDAO’s security here: Kelp DAO Audit reports Benefits to Moonwell Community * From Moonwell’s perspective, any new asset is a source of additional revenue and expands the ecosystem as a whole. LRTs are a great use case for Moonwell as it is one of the fastest growing ecosystems. * With wrsETH being one of the top LRTs, integrating it as a collateral asset will create new demand on Moonwell. This will be beneficial for both Moonwell and Kelp. In addition, wrsETH depositors will accumulate additional Kelp miles and EigenLayer points. Use cases for wrsETH market on Moonwell * Having wrsETH on Moonwell will allow users to earn Kelp Miles and Eigenlayer points while supplying and borrowing against wrsETH. Resources (Website, Social Media Links, and docs) * Website: https://kelpdao.xyz/restake/ * Documentation: Introduction | Kelp * Audits: Audits | Kelp * Discord: Please use the link on the forum, unable to add it here * Twitter: Kelp DAO (@KelpDAO) / X The proposal author’s contact information * Proposer - Aditya Deorukhkar * Role - DeFi & Partnerships team member, KelpDAO * Email - aditya@kelpdao.xyz * Telegram - @Hedged_Adi Market Risk Assessment Market cap of the token * 354 wrsETH on Base - (Basescan page) * 250k+ rsETH on Ethereum Mainnet - (Etherscan page) * 544 wrsETH on Optimism - (Optimistic scanner page) Total supply * 354 wrsETH on Base - (Basescan page) * 247k+ rsETH on Ethereum Mainnet - (Etherscan page) * 544 wrsETH on Optimism - (Optimistic scanner page) The largest central and decentralized exchanges where the token is listed and its respective liquidity * Aerodrome on Base - $2Mn TVL (0xA24382874A6FD59de45BbccFa160488647514c28) * On Ethereum Mainnet - * Total DeFi TVL $50Mn+ * Pools on Balancer, Uniswap, Curve and more * Optimism - * Balancer - wrsETH<>WETH pool - link * Velodrome - wrsETH<>WETH pool - link Emission schedule - NA Decentralization List of rsETH Holders on Mainnet List of wrsETH holders on Base List of wrsETH holders on Optimism Codebase & On-chain Activity Kelp’s Docs - https://kelp.gitbook.io/kelp/rseth-smart-contracts wrsETH on Base - https://basescan.org/address/0xEDfa23602D0EC14714057867A78d01e94176BEA0 * Age of the token - 4 Months old on Base, 9 months on Ethereum mainnet, * 20K+ Transactions on Base so far with wrsETH Security Audits: Kelp’s smart contracts are audited by Sigma Prime, MixBytes, and Code4rena- * Sigma Prime Report: https://kelpdao.xyz/audits/smartcontracts/SigmaPrime.pdf * MixBytes: https://kelpdao.xyz/audits/smartcontracts/mixbytes.pdf * Code4rena: https://code4rena.com/reports/2023-11-kelp Does the project have an active bug bounty program? - Kelp has partnered with Immunify to create a $250K Bug bounty program - link Provide emergency contacts with their estimated response time/availability * On TG - @saurabhj016, @galacticminter @Hedged_Adi - within an hour Oracle Assessment We are working with ChainLink for an Oracle on Base - * RSETH / ETH - 0xd7221b10FBBC1e1ba95Fd0B4D031C15f7F365296 * rsETH / ETH Exchange Rate - 0x99DAf760d2CFB770cc17e883dF45454FE421616b * On Optimism with ChainLink as well- * RSETH/ETH - 0x03fe94a215E3842deD931769F913d93FF33d0051 Yes the asset is a wrapped version of rsETH Average Daily Trading Volume: 1. wrsETH on Base - Avg Daily trading volume per day - $8.8K/day (Per day average based on last 7 days - DeXScreener) 2. wrsETH on Optimism - Avg Daily trading volume per day - $20K/day (Per day average based on last 7 days - DeXScreener) Top 10 Token Holders: The post does not provide a list of the top 10 token holders, the percentage held by each, and tags if known. 1. List of top 10 wrsETH holders on Base 2. List of top 10 wrsETH holders on Optimism Privileged Roles: Timelock proposer - https://app.safe.global/settings/setup?safe=eth:0xb3696a817D01C8623E66D156B6798291fa10a46d Kelp Manager - https://app.safe.global/home?safe=eth:0xCbcdd778AA25476F203814214dD3E9b9c46829A1 operators - * 0x7AAd74b7f0d60D5867B59dbD377a71783425af47, * 0xF2099c4783921f44Ac988B67e743DAeFd4A00efd, * 0xa7cDC32Cb1cc6E705C9F386441F0B1f6df44a963 None of the privileged roles have custody of user funds at any point. The timelock proposer is a community multisig responsible for upgrading contracts after a 10-day timelock delay. This proposer has doxxed signers from the broader community, not just Kelp. Manager is responsible for changing configurations of contracts. This includes the frequency with which staking happens etc. Operators are responsible for operations at a smart contract level. This include making calls to auto-compound rewards, stake ETH, process withdrawals etc- Pausability All Kelp contracts are pausable by the manager multisig. This is done so the team can respond to emergencies if any. However, it is only the Timelock Proposer that can unpause the contracts. This means that the team can only pause the contracts to prevent any damage etc. The resumption can only happen after the community leaders come together and agree it's safe to resume the protocol. There is no blacklisting mechanism of any sort at Kelp. Upgradability As mentioned above, only the timelock contract has the power to upgrade the contracts. The timelock delay is 10 days and the proposer is the community multisig. Chainlink Oracle Price Feed Base - RSETH / ETH - 0xd7221b10FBBC1e1ba95Fd0B4D031C15f7F365296 rsETH / ETH Exchange Rate - 0x99DAf760d2CFB770cc17e883dF45454FE421616b Optimism - RSETH / ETH - 0x03fe94a215E3842deD931769F913d93FF33d0051 Depeg Events There is no specific exclusive event for depegging. The Llama Risk Report covers some risks that apply to most staking pools. You can find the report here Collateral Risk Assessment - Kelp DAO Restaked ETH (rsETH) - Llama Risk

1. Proposal Submission Title: Add weETH market to Moonwell on Base Category: Community Proposals 3 Description: Greetings Moonwell family, Justin from Ether.fi here with a proposal for you! This proposal aims to add a new market for weETH on the Base network. This proposal includes a detailed risk assessment, benefits to the Moonwell community, and required information to facilitate the listing process. Required Information General Token Asset Name: weETH Description of the Project and the Token: Ether.fi is a decentralized, non-custodial liquid staking protocol built on Ethereum, allowing users to stake their ETH and participate in the DeFi ecosystem without losing liquidity. The protocol’s eETH is a liquid restaking token (weETH is the non-rebasing equivalent), serving as a representation of ETH staked on the Beacon Chain, which rebases daily to reflect the associated staking rewards. Users can deposit ETH into the liquidity pool on Ethereum Mainnet to mint eETH, hold eETH to accrue rewards, and use eETH within DeFi or swap it back to ETH at any time via the liquidity pool. The protocol currently employs a permissioned validator set, transitioning to permissionless based on the protocol roadmap. ETH staked through the Ether.fi liquidity pool accrues normal Ethereum staking rewards and will also be natively restaked with EigenLayer. Staking with eETH on Ether.fi automatically natively restakes that ETH to EigenLayer and accrues normal staking rewards while allowing users to keep composability on their eETH in other DeFi protocols. The eETH contract has been live since June 2023, with weETH launching to the open market on November 15th, 2023, and has approximately 1,814,766.66 ETH held within it. Being a liquid representation of staked Ethereum, the price of the token is aligned with the price of ETH. Through these mechanisms, eETH acts as a conduit for individuals to engage in Ethereum’s staking & restaking process with added liquidity, making it easier for them to enter and exit staking positions while also benefiting from boosted rewards. Benefits to the Moonwell Community: Ether.fi is looking to enhance liquidity for weETH on Base. Incentivizing a Moonwell pool will continue to boost the liquidity of the LRT on Base. Higher liquidity ensures that traders and investors can easily enter or exit positions, which is essential for the overall usability and attractiveness of the LRT token within the L2 DeFi ecosystem. Users who deposit into Moonwell will also be able to earn Etherfi points and Eigenlayer points, which count towards our Season 3 community allocations. Having weETH on Moonwell will allow users to earn Etherfi points and Eigenlayer points while supplying and borrowing against weETH. This can be done by depositing weETH onto Moonwell and borrowing against it. Resources: Website: https://www.ether.fi/ Documentation: https://etherfi.gitbook.io/etherfi/ether.fi-whitepaper Whitepaper: https://etherfi.gitbook.io/etherfi/ether.fi-whitepaper Github: https://github.com/etherfi-protocol Discord: Twitter: https://twitter.com/ether_fi Proposal Author’s Contact Information: Justin@ether.fi Relationship between the Author and the Token: Representative of Ether.fi Social Channel Metrics: Twitter: 155,943 Discord: 38,733 members Community Activity: Active Market Risk Assessment Market Cap: $4,501,927,254.00 on mainnet Total Supply: 1,391,974.6199 weETH Exchanges and Liquidity: Centralized Exchanges: Gate.io, Bybit, Mexc Decentralized Exchanges: Uniswap : $176.5 Million Camelot V3: $2.43 Million Balancer: $39.8 Million Base specific liquidity Total supply: 2,969.97 weETH on Base Velodrome : 289.655 weETH Uniswap: 99.02 weETH Volatility (30 days, 90 days, 1 year): This token is a rebasing version of eETH that is pegged 1:1 with Ethereum. Average Daily Trading Volume: $54,399,199 Gini Coefficient and Herfindahl Index: N/A Emission Schedule: This token is minted by wrapping eETH, and is backed by ETH. There is no set emission schedule. Decentralization Top 10 Token Holders and Percentages: https://etherscan.io/token/0xcd5fe23c85820f7b72d0926fc9b05b43e359b7ee#balances Privileged Roles in the Token Contract: Multi-signature wallet, transitioning to DAO governance, 4 of 7 multisigs required Is the Token Pausable? No Does the Token Have a Blacklist? No Smart Contract Risks Codebase & On-chain Activity Github Repository: https://github.com/etherfi-protocol/smart-contracts/tree/master/audits Verified Contracts: https://basescan.org/address/0x04c0599ae5a44757c0af6f9ec3b93da8976c150a#code Age of the Token: 37 days Number of Transactions: 7,249 Security Posture Audits Performed: https://etherfi.gitbook.io/etherfi/security/audits Active Bug Bounty Program: Yes Emergency Contacts and Availability: Various team members, available around the clock as they are in different geographical locations Upgradability Is it Upgradeable? Yes Who is Authorized to Make an Upgrade? Governance Token Holders can vote on changes Time-lock Delay for Upgrades: Yes, there is a 3 day timelock period Components Upgradeable: Upgradeability Design and Management: Event Emission on Implementation Update: Yes Oracle Assessment Chainlink Oracle Price Feed Address: 0x35e9D7001819Ea3B39Da906aE6b06A62cfe2c181 Is the Asset Wrapped, Staked, or Synthetic? Wrapped How is the Asset Wrapped, Staked, or Created? Staked in Eigenpods Network of the Underlying Asset: Ethereum Verification of Minted Asset vs. Locked Asset: Proof of Reserves (PoR) Verification: Price Deviation Analysis: Pegged 1:1 with Ethereum Events Causing Price Depegging: None For: Add weETH Market to Moonwell on Base Against: Make no change

Summary I propose that the Moonwell DAO [WELL] votes to authorize the activation of the Moonwell Protocol on Optimism. By leveraging Optimism’s advanced scaling solutions, shared values, and robust funding opportunities, we’ll be able to significantly expand Moonwell's reach and impact. Activating Moonwell on OP Mainnet will allow Moonwell opportunities to (1) become the leading lending protocol on Optimism, (2) align with shared values and ecosystem goals, and (3) access the Optimism Foundation’s generous funding and incentives programs. About Optimism Optimism is an Ethereum Layer 2 (L2) blockchain network developed by OP Labs and deployed in 2021. Utilizing Optimistic Rollups, Optimism bundles transactions off-chain and posts transaction data (blobs) to Ethereum mainnet. It is designed to enhance scalability and reduce transaction costs while maintaining the security that Ethereum mainnet provides. The recent implementation of EIP-4844 and “blobspace” has further reduced transaction fees on both Base and Optimism, aligning with the Moonwell community’s mission of making onchain finance accessible to everyone. Optimism shares foundational technological and philosophical principles with Base, which Moonwell was activated on in March 2023. Optimism and Base are both built on the OP Stack, a set of MIT-licensed open-source software designed to enhance Ethereum's scalability and modularity. The OP Stack facilitates the creation of interoperable Layer 2 solutions, contributing to a larger “Superchain” vision where multiple Layer 2 networks can operate cohesively. Optimism and Base are both committed to the Retroactive Public Goods Funding (RetroPGF) model, which incentivizes the development of open-source projects that benefit the entire Superchain ecosystem. Since its inception in 2021, Optimism has supported around 370 dApps and has a Total Value Locked (TVL) of approximately $884.81 million. The network has saved users over $1 billion in gas fees. Statistics on lending protocols on Optimism can be found here; as of June 16, 2024, the lending protocols on Optimism with the highest TVL are Aave v3 ($160.5m), Exactly ($10.08m), and Compound v3 ($6.32m). The recent exploit of the lending protocol Sonne Finance has created a significant gap in the Optimism lending ecosystem. This presents an ideal opportunity for Moonwell to step in and establish itself as the go-to lending solution on the network. Optimism's roadmap focuses on enhancing scalability and decentralization. A significant milestone was recently achieved with the launch of permissionless fault proofs on OP Mainnet, marking Optimism’s arrival at Stage 1 decentralization. This enables withdrawals without trusted third parties and allows users to challenge invalid withdrawals. Optimism is now working towards Stage 2 decentralization by implementing multiple proof systems, including zero-knowledge proofs. The fault proof proposal was approved by Optimism's governance process, and additional proof systems will be rolled out on testnet to ensure reliability and robustness. Activating Moonwell on Optimism aligns the protocol with a network dedicated to efficiency, accessibility, decentralization, and community-driven development, positioning Moonwell at the forefront of the rapidly evolving Superchain ecosystem. Motivation Activating Moonwell on Optimism offers a number of benefits to the Moonwell community, including opportunities to: 1. Become the Leading Lending Protocol on Optimism 2. Align with Shared Values and Ecosystem Goals 3. Access Optimism’s Substantial Funding and Incentive Programs Become the Leading Lending Protocol on Optimism There is a massive opportunity for Moonwell to capture a large portion of lending TVL on Optimism, especially in light of the recent Sonne Finance exploit. Aave, the current TVL leader, is a low-effort deployment lacking a Safety Module and additional market incentives. The current state of lending on Optimism is available here on DeFi Llama. By deploying Moonwell on Optimism, we can tap into this established DeFi landscape, attracting a broader user base seeking efficient and cost-effective financial services. Align with Shared Values and Ecosystem Goals Moonwell and Optimism share a common vision centered on decentralization, security, and community governance. Optimism’s governance model, which includes the Retroactive Public Goods Funding (RetroPGF) initiative, aligns with Moonwell’s commitment to fostering an open, community-driven ecosystem​. See the Optimism Collective Constitution here. The governance of the Moonwell Protocol on Optimism will be managed by WELL token holders, though note that xWELL (multichain native, xERC-20 WELL), the multichain vote collector contract, and the Safety Module will be activated in a later proposal following initial activation. Halborn Security is anticipated to conduct code reviews to verify all the deployment parameters. Moreover, Moonwell markets on Optimism will be safeguarded against price manipulation through the use of Chainlink oracle price feeds. Moonwell contributor and lead risk manager Gauntlet will conduct regular economic simulations to confirm that asset risk parameters are maintained at safe levels. Access Optimism’s Funding and Incentive Programs Optimism has well-known and extremely generous funding and incentive programs we can leverage to bolster liquidity in our markets and drive user adoption. In 2023, the Moonwell community successfully secured a Retro PGF3 grant of 54,658 OP tokens and we have also applied for Retro PGF4. In addition to RetroPGF grants, Moonwell contributors have been approached about an upcoming incentives program that will grant OP tokens to projects activating on Optimism. All granted OP tokens will be used as liquidity incentives, bootstrapping markets and further boosting the growth and adoption of Moonwell on the Optimism network. Proposed Markets I propose activating the Moonwell Protocol on Optimism with the following initial lending markets: WETH: 0x4200000000000000000000000000000000000006 USDC: 0x0b2c639c533813f4aa9d7837caf62653d097ff85 USDT: 0x94b008aa00579c1307b0ef2c499ad98a8ce58e58 DAI: 0xda10009cbd5d07dd0cecc66161fc93d7c9000da1 WBTC: 0x68f180fcce6836688e9084f035309e29bf0a2095 wstETH: 0x1f32b1c2345538c0c6f582fcb022739c4a194ebb cbETH: 0xaddb6a0412de1ba0f936dcaeb8aaa24578dcf3b2 rETH: 0x9bcef72be871e61ed4fbbc7630889bee758eb81d OP: 0x4200000000000000000000000000000000000042 VELO: 0x3c8b650257cfb5f272f799f5e2b4e65093a11a05 All proposed assets already possess Chainlink price feeds and their markets will be initially set to 0% CF to protect against the “Hundred Finance exploit”. Gauntlet will be able to update market risk parameters such as Collateral Factors following initial market activation in their monthly risk parameter adjustment MIPs. As with Moonwell’s Base deployment, Gauntlet will also be able to adjust supply and borrow caps dynamically through their Cap Guardian role, which will be included in the subsequent onchain activation proposal. Voting All Moonwell DAO members are encouraged to vote on this proposal. Voting options include: Yes: Activate the Moonwell Protocol on Optimism No: Make no change Conclusion Activating Moonwell on Optimism offers the opportunity to become the leading lending protocol on the network, align with shared values and ecosystem goals, and access substantial funding and incentive programs provided by the Optimism Foundation. These benefits will enhance our platform's development, improve user adoption, and drive product innovation. I welcome any questions, comments, or requests for clarification. I’m very excited about the prospect of activating Moonwell on another values-aligned chain, and I’m keen to move this forward for onchain voting next week if this Snapshot is successful!

[Temp Check] Moonwell MetaMorpho Vaults: Next-Gen DeFi Lending Hello Moonwell community, We are thrilled to introduce a collaboration opportunity between the Moonwell DAO, Block Analitica, B.Protocol, and Morpho that has the potential to revolutionize the lending landscape on Moonwell. By leveraging Morpho's cutting-edge MetaMorpho protocol, we aim to bring the next generation of optimized lending vaults to the Moonwell ecosystem, offering users unparalleled capital efficiency, flexibility, and risk management. Morpho Blue Morpho Blue is a next-generation lending protocol that is trustless, immutable, and non-upgradable. The entire protocol comprises under 650 lines of Solidity code, which cannot be changed or upgraded, lowering potential surface area for exploits and vulnerabilities. It prioritizes capital efficiency and flexibility, enabling the creation of unlimited risk profiles by externalizing risk management from the core protocol. Key benefits of Morpho Blue: Trustless: Immutable and governance-minimized ensuring safety and predictability Flexible: Permissionless market creation, externalized risk management, and developer-friendly architecture Efficient: Higher collateralization factors, improved interest rates, and low gas consumption Isolated: Unlike Compound v2, Morpho Blue's lending markets are isolated, enabling safe support for long-tail assets on Moonwell MetaMorpho Vaults MetaMorpho, built on Morpho Blue, is an open-source protocol for creating permissionless lending vaults. These ERC-4626 compliant vaults accept deposits and intelligently allocate funds across Morpho Blue markets, with each vault tailored to a specific risk profile. MetaMorpho's key differentiators: Fully transparent, non-custodial vaults with immutable logic and onchain allocations Flexibility to lend across Morpho Blue markets, each with unique parameters Permissionless vault creation, democratizing access for risk managers Layered risk management via clearly defined vault roles: - Owner: Sets high-level vault strategy and assigns roles - Curator: Defines vault boundaries (markets, supply, and borrow caps) - Allocator: Dynamically optimizes yield within set boundaries - Guardian: Provides oversight and can veto pending actions in timelock This robust role-based system enables continuous optimization and risk mitigation, empowering vaults to deliver the best risk-adjusted yields to depositors. Benefits for Moonwell users: ✅ Earn higher yields through optimized lending strategies ✅ Choose from vaults curated to your specific risk appetite ✅ Enjoy peace of mind with battle-tested, transparent risk models ✅ Potential to create isolated markets for long-tail assets that may be too risky for existing Compound v2 markets About Block Analitica Established in 2018, Block Analitica is a dedicated risk management firm with extensive experience working with several communities in the DeFi ecosystem. From company launch until today, we have served as the risk management service provider for MakerDAO, where we assist in the management of a risk-mitigated portfolio of collateral backing Dai. Over the course of our years of successful operation, we have expanded our services of bespoke dashboard development and risk consulting to a variety of protocols, including Morpho, Spark, Compound, Aave, Ajna, BadgerDAO, and Delv (Hyperdrive). Since November 2023, Block Analitica and B.Protocol have collaborated as Morpho risk curators, enabling the Flagship ETH, USDC, and USDT Metamorpho vaults with over $52.9 million in deposits. We have also developed the Morpho Analytics Dashboard to help enhance the risk management and user experience of our curated vaults, as well as the broader Morpho Blue ecosystem. We regularly use the Morpho Analytics Dashboard to monitor risks, review relevant parameters, and alert and present important market changes. Since March 2024, the Block Analitica team – acting as members of the Stability Advisory Council at MakerDAO – have helped onboard and manage the Morpho Spark DAI Vault. We produced the initial MetaMorpho integration risk assessment and are actively involved in assessing vault risks, managing vault parameters and allocations, and proposing MakerDAO Morpho D3M parameters. About B.Protocol B.Protocol has been building open-source protocols and infrastructure for risk mitigation and assessment for the DeFi ecosystem since 2020. Through our research arm RiskDAO and its novel risk framework, we have supported over a dozen DeFi protocols with risk analysis, research, audits, and monitoring. With a focus on automating risk management processes in DeFi, we have developed the Risk Oracle and SmartLTV formula to set and monitor risk parameters for lending platforms in a transparent way, building the next generation of DeFi risk management infrastructure. To mention some of our latest development, we have introduced an open-source algorithm for optimizing DEX liquidity aggregation, built a Risk Level monitor for the MetaMorpho Flagship vaults we co-curate with Block Analitica, and lately implemented an auto-Allocator for the flagship vaults, creating the first fully automated smart contract risk manager in the DeFi lending ecosystem. Our Proposed Moonwell MetaMorpho Vaults Block Analitica and B.Protocol propose to leverage our deep risk expertise and knowledge of the Morpho Blue and MetaMorpho protocols to curate a series of optimized MetaMorpho vaults in collaboration with the Moonwell DAO. Initial vaults will support USDC and WETH, making optimized yield generation effortless for Moonwell users. Our proprietary risk models, stress-tested in production, will power dynamic allocation across Morpho markets to deliver the best risk-adjusted returns with enforceable onchain risk limits. Moonwell’s MetaMorpho vaults will be accessible through the Moonwell application and as easy to access and use as current Moonwell markets. For Moonwell’s MetaMorpho vaults we suggest the following role assignments: Owner: Moonwell DAO Curator: Block Analitica & B.Protocol Allocator: Block Analitica & B.Protocol Guardian: Moonwell Security Council Next Steps Pending the passage of this temperature check Snapshot proposal, here's a high-level overview of our potential launch plans: Onchain Moonwell Improvement Proposal vote to: - Deploy USDC and WETH MetaMorpho vaults - Establish vault roles and risk parameters - Distribute initial WELL liquidity incentives - Vault integration into the Moonwell app for seamless user experience - Go-to-market push to drive awareness and bolster liquidity We believe this collaboration can set a new standard for optimized, risk-conscious DeFi lending. By combining Block Analitica and B.Protocol's risk management expertise, Morpho's powerful MetaMorpho framework, and Moonwell's ecosystem scale and intuitive interface, we can attract substantial new capital and users. Voting Options Yay: I support the proposed collaboration with Block Analitica and B.Protocol, deployment of Moonwell MetaMorpho vaults, allocation of WELL incentives, and assignment of above roles. Nay: I oppose the proposed collaboration, deployment of Moonwell MetaMorpho vaults, allocation of WELL incentives, and assignment of above roles.

I would like to propose the establishment of a new Moonwell Security Council and the ratification of its initial roster. The ratification of the Moonwell Security Council is a timely and essential step forward as we embark on an exciting new chapter in Moonwell’s journey. The recent launch of the Moonwell Foundation marks a significant milestone in our path towards continued decentralization and long-term sustainability, empowering our community to drive further innovation and growth. Simultaneously, the successful deployment of the multichain governor contract and upgraded WELL token have enabled seamless staking and voting on Moonwell Improvement Proposals directly on Base. As we continue to expand our ecosystem and welcome new users, DAO members, contributors, and partners, it is crucial that we have a dedicated group of trusted individuals and entities to oversee the security and integrity of the Moonwell Protocol, DAO, and Foundation. The Moonwell Security Council will serve as a unified group of signatories across various mission-critical, security-focused multisigs, such as the Governance Guardians and Pause Guardians. In addition to their Guardianship responsibilities, the Security Council will also play a vital role in reviewing and approving grant proposals submitted to the Moonwell Foundation, ensuring that projects seeking grant funding align with the Moonwell community’s objectives and contribute to the growth and security of the ecosystem. By ratifying a single, trusted group of entities and individuals to serve on the Moonwell Security Council, we can strengthen our security posture, bolster incident response time, and ensure that Moonwell operates with the highest standards of security, integrity, and transparency. Summary I propose the ratification of the initial Moonwell Security Council roster, which will play a critical role in safeguarding the Moonwell Protocol, DAO, and Foundation. The Council will have the authority to take emergency actions to mitigate potential security threats and ensure the smooth operation of Moonwell. This proposal aims to establish the initial roster of the Moonwell Security Council and align the signers across mission-critical Guardian multi-sigs, in an effort to enhance our resilience and readiness to respond to potential security incidents. Implementation Currently, the below Guardian roles exist, each with their own specific powers and sets of signatories. 1. Pause Guardian: Enables signers to pause specific functionality of the Moonwell Protocol. The functions that can be paused by the Pause Guardian role include Mint, Borrow, Transfer, and Liquidate. These can be toggled to the paused and unpaused state by the pause guardian at any time. Pausing the xWELL token or the Multichain Governor contract revokes the pause guardian role, after which a proposal will have to pass to grant the role again. Only through the MIP Process can these functions be reenabled. In the case of an active or potentially imminent security threat, these functions may be paused in order to mitigate any potential loss of funds or bad debt accrual. 2. Governance Guardian (Break Glass Guardian): Enables signers to return governance back to the governanceReturnGuardian address defined in the Multichain Governor smart contract. The initial Break Glass Guardian multisig signers were ratified by the community through a Snapshot vote before onchain governance was activated on Moonbeam. This role will be known as the Governance Guardian role going forward. Only through the MIP Process can ownership be transferred back to the multichain governor contract. 3. Temporal Governance Guardian: Enables signers to pause Temporal Governance if the Wormhole bridge is ever compromised, allowing for a malicious proposal to bypass the MIP Process. The Temporal Governance Guardians were ratified by the community during the Base activation proposal MIP-B0. When the temporal governor is paused, its 24 hour timelock can be overridden by fast tracking proposals this guardian signs. If this proposal is ratified, the following entities and individuals will serve on the inaugural Security Council. Security Council members will be added to the above Guardian roles and current signatories not serving on the Security Council will be rotated off: 1. Gauntlet 2. Elliot Friedman (Solidity Labs) 3. Luke Youngblood (Lunar Labs) 4. X0s0l 5. Coolhorsegirl The newly appointed Security Council members will assume their roles immediately, and their signing authority will be extended across all Governance Guardian and Pause Guardian roles. Those individuals not on the Council will be rotated off. Further information regarding the Moonwell Security Council can be found in the Moonwell DAO Constitution. Future Makeup The initial Security Council members will serve a single 12-month term. Following this initial term, an open election will take place every 12 months to elect new Security Council members, utilizing the parameters set out in the Moonwell Foundation Bylaws. Community members can nominate themselves, and new members will be added to multisigs while old members are rotated off. Voting Options: Yes: Approve the initial Moonwell Security Council roster as proposed and align the signers across all Governance Guardian and Pause Guardian roles. No: Reject the initial Moonwell Security Council roster and maintain the current Guardian/signatory configuration. Conclusion The establishment of the Moonwell Security Council and ratification of its initial roster is a significant step towards ensuring the long-term security and resilience of the Moonwell Protocol, DAO, and Foundation. By ratifying the initial roster and aligning the signers across all critical Guardian roles, we can create a strong foundation for effective governance and risk management.

Summary Gauntlet proposes onboarding AERO as collateral on Moonwell Base deployment. Due to the market demand and growth of AERO liquidity on Base we think it is appropriate to list the asset. This proposal has been meticulously developed in accordance with our Moonwell Asset Listing Framework v2, ensuring all critical details necessary for introducing a new asset are thoroughly addressed. Given that AERO is an established asset on Base with robust on-chain liquidity and DEX support, most required data points are readily available and included in this document. In line with the procedures established by the Moonwell Asset Listing Framework v2, Gauntlet plans to submit this proposal for a Snapshot signal vote shortly. Should this vote pass, and following the implementation of our initial risk parameter recommendations, Gauntlet will work with other Moonwell contributors to help initiate the AERO market smart contract prior to the on-chain activation vote. General Information Asset Name: AERO Address: 0x940181a94A35A4569E4529A3CDfB74e38FD98631 Project Description: Aerodrome Finance is a next-generation AMM designed to serve as Base's central liquidity hub, combining a powerful liquidity incentive engine, vote-lock governance model, and friendly user experience. Aerodrome inherits the latest features from its sister protocol Velodrome V2Maybe a second bullet underneath that briefly describes AERO. Token Description: AERO is the native utility token of Aerodrome Finance. Aero holders can vote-escrow their tokens (converting them to veAERO) for up to 4 years to participate in governance and earn protocol fees. Benefits to Moonwell Community: * Expands Moonwell’s stable of supported assets. * Bolsters the synergy between Moonwell and Aerodrome, the top two DeFi projects in the Base ecosystem. This continued collaboration can lead to increased adoption through cross-pollination of user bases. * Allows WELL tokenholders providing liquidity on Aerodrome to utilize their earned AERO directly on Moonwell. Resources: * Website * Twitter * Medium * Documentation Market Risk Assessment Gauntlet has developed custom risk parameters for the AERO token launch, based on our models and best practices. | Parameters | Values | |----------------------|--------| | CF | 0% (Expected 70%) | | Supply Cap | 6,000,000 ($10,000,000) | | Borrow Cap | 3,000,000 ($5,000,000) | | Protocol Seize Share | 3% | IR Recommendations | IR Parameters | Recommended | |------------------|-------------| | Base | 0 | | Kink | 0.45 | | Multiplier | 0.07 | | Jump Multiplier | 3.15 | | Reserve Factor | 0.25 | Supporting Data Market Overview !Screenshot 2024-04-16 at 4.01.39 PM | Metric | Value | | ------- | ------ | | Market Cap | $675,508,415 | | 30D AVG Volume (CEX+DEX) | $44,710,212 | | Circulating Supply | 402,444,318 | | Herfindahl Index | 0.0284 | Volatility & Max DD !Screenshot 2024-04-17 at 11.02.17 AM The maximum and minimum daily log returns for AERO are 65.5% and -26.6% respectively over the past 60 days. We consider the minimum daily log returns as a suitable benchmark for setting Collateral Factor, giving the max CF at ~74% however, to be more conservative we recommend a starting CF of 0% to test the market and expect to reach an ideal state with CF of 70%. TVL !Screenshot 2024-04-16 at 4.30.57 PM The TVL of the protocol has grown exponentially to a total of $1.43bn, Aerodrome is the largest DEX on Base. Gauntlet deems this TVL adequate to classify AERO as an asset that has inherent value/use cases and to be a listable asset on Moonwell Base market. Supply and Borrow Caps !Screenshot 2024-04Fila-16 at 10.20.21 AM Borrow and supply caps are the primary parameter recommendations we can make to mitigate protocol risk when listing new assets. Gauntlet recommends setting the borrow and supply caps strategically with available liquidity on-chain. There is sufficient liquidity to trade upto $20M worth of AERO tokens with a slippage of 25% signalling a maximum cap setting of 12M AERO tokens. However, we recommend a more conservative supply cap of 6M AERO tokens and 3M AERO tokens for borrow cap to bootstrap the market. Gauntlet will continue to monitor these caps and increase them with respect to market demand and liquidity. Token Concentration Risks As with governance tokens, there have been incidents (Curve) where large sums of tokens were used as collateral to borrow on lending protocols. Gauntlet suggests that such risks can be averted by applying conservative Caps along with using the Herfindahl Index to gauge token concentration across wallets. The Herfindahl Index serves as a measure of fund concentration within addresses on the network, offering insight into the distribution of funds among participants. In our context, the "market" encompasses the total supply held in externally owned accounts (EOAs), while the "market share" denotes the relative balance of each address compared to this total supply. Consequently, the Herfindahl Index condenses this information into a single value, reflecting the extent of token concentration across network addresses. Scoring between 0 and 1, the Herfindahl Index provides a clear indication of supply concentration: higher scores signify significant concentration, whereas lower scores suggest a more balanced distribution of funds among addresses. Specifically, it aids in pinpointing tokens where a single entity holds a substantial portion of the token supply. Our findings show that excluding major smart-contracts that are of either AMM or staking pools, the HI of AERO is 0.0284 suggesting a more evenly distributed ownership across the network. IR Parameter Specifications AERO IR Curves !Screenshot 2024-04-17 at 10.52.22 AM | Utilization | Borrow APR | Supply APR| | ------------| ---------- | ----------| | 0% | 0 | 0 | | 45% | 3.15% | 1.06% | | 100% | 176.4% | 132.3% | We recommend an IR curve similar to other assets on the protocols, with a kink at 45% and borrow APR of 3.15% at kink. Smart Contract Risk Github Repo Contracts Age of Token: 234 Days Number of token contract transactions: 5,786,593 Is it upgradeable? * No, the token contract is not upgradeable. It does not use any proxy or upgradeability patterns. Decentralization Top 10 Holders Privileged Roles: * ”minter” - The address that has the right to mint new tokens. Initially set to the contract deployer, and can be changed by the current minter using the setMinter function. * ”owner” - Set to the contract deployer. However, the owner variable is private and not used in any function, so it doesn't have any special privileges in the current code. Is the token pausable? * No, the token is not pausable. Does the token have a blacklist? * No, the token does not have a blacklist functionality in the provided code. Oracle Assessment Oracle Price Feed: * The official Chainlink oracle price feed address for the $AERO token on the Base network is AERO/USD. On what network does the underlying asset exist? * Base Asset Nature: * The $AERO token is not a synthetic, wrapped, or staked version of any underlying asset. It operates independently on the Base network To access more detailed information about the $AERO token's Chainlink oracle price feed, please visit the Chainlink price feed documentation page here. Conclusion The addition of AERO to Moonwell Base presents a strategic opportunity to enhance the diversity and robustness of protocol asset offerings. The risk analysis by Gauntlet, alongside the strong market performance and liquidity of AERO, supports a favorable risk profile. Implementing this recommendation could drive further integration within the Base ecosystem, benefiting Moonwell community and stakeholders by providing more options for investment and collateral. We recommend proceeding with the onboarding process, following the outlined risk parameters and monitoring the market response closely to make any necessary adjustments in the future. Disclaimer As specified in the Asset Listing Framework v2, Gauntlet does not cover smart contract risks or any technical risks. Any of the smart contract or technical risk references or guidelines provided in this document are provided as general best practices by either Gauntlet or the Moonwell community. Voting For: Proceed with an MIP to add AERO market to Moonwell on Base Against: Make no change

I’m excited to present a proposal for a new addition to Moonwell’s Base deployment: the activation of a WBTC (Wrapped Bitcoin) market. WBTC went live on Base last week, which presents us with an opportunity to be the first lending application on the network to add support for this popular asset. Our history of seizing the “first mover advantage” with new asset listings for DAI, wstETH, and rETH positioned us well to attract liquidity to the protocol. By also embracing WBTC early, we aim to continue this tradition, enhancing not only liquidity, but the options available to Moonwell’s ever-expanding user base. This proposal has been crafted in adherence with Gauntlet’s Moonwell Asset Listing Framework v2, ensuring comprehensive coverage of essential details required for a new asset listing. It’s important to note that WBTC, being a newly launched asset on Base, currently faces challenges with onchain liquidity and DEX support, making some of the required data points unobtainable (marked with “N/A” below). Also in alignment with the processes put in place by the Moonwell Asset Listing Framework v2, I am submitting this proposal for a Snapshot signal vote before proceeding with an onchain MIP. If this Snapshot vote is successful and following the delivery of Gauntlet’s initial parameter recommendations, I will request the assistance of Moonwell contributors familiar with the market deployment process to deploy the WBTC market smart contract before the onchain activation vote. General Information Asset Name: Wrapped Bitcoin (WBTC) Token Contract Address: 0x1ceA84203673764244E05693e42E6Ace62bE9BA5 Project Description: - WBTC is a wrapped version of Bitcoin, allowing BTC to be used as an ERC-20 token, facilitating its use within the Ethereum / DeFi ecosystem. - WBTC is backed 1:1 by Bitcoin, with proof of reserves visible onchain. WBTC on Base is natively minted. WBTC on Base is the first version of the asset to be natively minted on an Ethereum L2. - New Wrapped BTC are minted when a merchant (Wintermute) sends Bitcoin to a custodian (BitGo) and Bitcoin is sent back to the merchant after the Wrapped BTC has been burned. The burned WBTC is deducted from the merchant’s onchain WBTC balance and the supply of WBTC is reduced in tandem. Benefits to Moonwell Community: - Activating a new market for WBTC would add increased diversity to Moonwell’s range of offerings, potentially increasing user engagement and protocol liquidity. - If we act quickly to activate this market, Moonwell will be the first lending app on Base to support WBTC, increasing our odds of successfully attracting liquidity and new users. - Bitcoin is commonly used as a “store of wealth/value”. Adding support for WBTC on Moonwell will allow users to supply their WBTC to the protocol and eventually borrow against it once liquidity conditions improve. Resources: - Official Website - https://wbtc.network/ - GitHub - https://github.com/WrappedBTC - WBTC Twitter- https://twitter.com/WrappedBTC - BitGo Twitter - https://twitter.com/BitGo - Whitepaper - https://wbtc.network/assets/wrapped-tokens-whitepaper.pdf Proposal Author Contact Information: - Name - Coolhorsegirl (Madison Sinclair) - Telegram Handle - @coolhorsegirl - Discord Handle - @coolhorsegirl - Delegate Address - 0x7F953f11343408eBCcaEcd04eB0D1E6bacDEf87F - Relationship with Token: I am a Moonwell community member and delegate with no direct affiliation with the WBTC DAO or BitGo. Market Risk Assessment Market Cap: - Total Market Cap on ETH Mainnet: $10,586,706,731.94 Market Cap on Base: $340.00 Total Supply: - Total Supply of WBTC on ETH Mainnet: 155,856.0537 WBTC - Total Supply of WBTC on Base: 0.004984 WBTC Liquidity on Exchanges: Asset currently lacks DEX support on Base Proof of Assets: Wrapped Bitcoin (WBTC) an ERC20 token backed 1:1 with Bitcoin Volatility: [N/A] Average Daily Trading Volume: [N/A] Gini Coefficient and Herfindahl Index: [N/A] Decentralization Token Contract: 0x1ceA84203673764244E05693e42E6Ace62bE9BA5 Top 10 Token Holders: - Holder #1: 0x18c5fb0518c81510e80d4d350bc3a8778c548d6a - Amt: 0.004984 WBTC Privileged Roles in Token Contract: WBTC DAO manages the WBTC token contract. The WBTC DAO is composed of 13 members that sit on an 8-of-13 multisig. Additional information about WBTC DAO and its members can be found here. Pausability: Yes, WBTC DAO’s 8-of-13 multisig wallet has the ability to pause and unpause the WBTC contract. Blacklist Functionality: No. Smart Contract Risks Codebase & On-chain Activity: - GitHub Repository: https://github.com/WrappedBTC - Age of Token: 118 days - Transaction Count: 4 transactions Security Posture: - Audits: - Chain Security Audit - https://github.com/ChainSecurity/audits/raw/master/ChainSecurity_WBTC.pdf - Solidified Audit - https://github.com/solidified-platform/audits/blob/master/Audit%20Report%20-%20WBTC%20%5B11-19-2018%5D.pdf - Coinspect Audit - https://github.com/coinspect/publications/blob/master/WBTC2018v1113.pdf - Bug Bounty Program: HackerOne Upgradability: - Is it upgradeable: Yes - Upgrade Process: 8 out of 11 WBTC DAO multisig signers must approve upgrade. - Authorized Parties: WBTC DAO members (Kyber, Chainlink, Compound, Balancer, Multichain, BitGo, RiskDAO, Krystal, Loopring, Ren, Tom Bean, Badger, Gopax) Oracle Assessment Chainlink Oracle Price Feed Address: 0xCCADC697c55bbB68dc5bCdf8d3CBe83CdD4E071E Wrapped or Synthetic Asset Details: Wrapped Asset [ERC-20] How is the asset wrapped, staked, or otherwise created?: - WBTC is wrapped, where Bitcoin is held by the custodian (BitGo), and an equivalent amount of WBTC is minted on the destination blockchain (Base). - This process is overseen by a consortium of organizations that act as custodians, merchants, and users within the WBTC network. BitGo is the custodian responsible for WBTC on Base and Wintermute is the first merchant to be onboarded. On what network does the underlying asset exist?: - Bitcoin 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?: - The amount of WBTC minted is always backed 1:1 by the amount of BTC locked/custodied. This is verifiable through the “Proof of Reserve” mechanism facilitated by Chainlink’s decentralized oracle network. - Chainlink oracles check the balances of BitGo’s WBTC custody wallets every 10 minutes (~Bitcoin block time) and update the onchain data accordingly. Is there a way to verify proof of reserves (PoR) on the same network as the market?: - Proof of reserves for WBTC on Base can be viewed here. Please provide an analysis of the price deviation from the underlying asset; ie. over the last 180+ days, how much has the price of the token on centralized or decentralized exchanges deviated from the price of the underlying asset?: - N/A What specific events might cause the price to “depeg” or no longer be the same as the price of the underlying asset?: - Smart Contract Failures - Vulnerabilities or failures in the smart contracts managing WBTC, its reserves, and its burning/minting mechanisms. - Oracle Failure - Chainlink’s price feed for WBTC could go offline, failing to provide the Moonwell protocol with accurate and up-to-date price data. - Operational Failure - Issues with the merchants, custodians, or processes involved in managing the Bitcoin reserves or minting of WBTC. Conclusion Activating a WBTC market on Moonwell’s Base deployment is a strategic step towards diversifying Moonwell’s product offerings and boosting protocol liquidity. BTC has historically been seen as a “store of value”, making WBTC a perfect candidate to add to Moonwell, as it will give users looking to do more with their Wrapped Bitcoin new options on Base. Voting For: Add WBTC Market to Moonwell on Base Against: Make no change

After the approval of the proposal in July 2023, Gauntlet assumed the role of Supply and Borrow Cap Guardian on Base. This position has been critical in enhancing risk management on Base, allowing for more dynamic and regular adjustments to these important risk parameters. Since the fourth quarter of 2023, there have been 16 changes in the Base parameters, implemented under Gauntlet's guardianship to adapt to these evolving conditions. Oct 3, 2023: Lowered caps for UbSDC Oct 25, 2023: Lowered caps for UbSDC Nov 10, 2023: Increased borrow caps for USDC Nov 13, 2023: Increased caps for wstETH Nov 17, 2023: Increased caps for wstETH Nov 22, 2023: Increased caps for rETH Nov 29, 2023: Increased caps for rETH Nov 29, 2023: Decreased caps for USDbC Dec 6, 2023: Increased caps for rETH Dec 7, 2023: Increased caps for rETH, wstETH, DAI Dec 11, 2023: Increased caps for rETH, WETH, wstETH, and cbETH Dec 18, 2023: Increased caps for rETH + Provided a no-cap change for DAI Dec 28, 2023: Increased supply cap for USDC Jan 9, 2024: Increased Borrow Caps on rETH on Base, and decreased Supply caps for DAI Jan 16, 2024: Increased Borrow Caps for wstETH and USDC on Base Jan 22, 2024: Decreased Borrow and Supply Caps for DAI Borrow Cap Guardians Recommendation Enable Gauntlet as Borrow Cap Guardian To enhance risk management and foster efficient growth within the Moonbeam instance of Moonwell, Gauntlet proposes to serve as Borrow Cap Guardians. Please note that Gauntlet is proposing to become the guardian only for borrow caps, as there are no supply caps on the Moonbeam instance. This role would enable the Moonwell community to delegate the authority for adjusting caps to Gauntlet. According to the Moonwell technical docs, the Cap Guardian function is beneficial for delegating the adjustment of borrow caps across markets to specialists in these adjustments, without granting them full administrative access to the rest of the protocol. As an active community participant with specialization in these adjustments, Gauntlet suggests being appointed as Guardian. The reasons for seeking this guardianship are: Proactive Cap Adjustments: This role allows us to quickly modify caps in response to market risk events, on-chain DEX liquidity fluctuations, and changes in liquidity pool usage. Streamlined Process: It simplifies the voting process and operational procedures. Expedited Recommendations: Gauntlet can propose adjustments to borrow caps without the standard 3-day voting period and timelock, enabling faster implementation of cap changes. If entrusted with Guardian, Gauntlet commits to adhere to the following limitations when making borrow cap adjustments: For each asset, only one increase is allowed every five days. The borrow cap can never exceed 100% of its current value. Additionally, Gauntlet will ensure transparency and community engagement by informing the community about any cap changes and providing the rationale through forums. Next Steps Please vote 'yes' if you agree with Gauntlet becoming the cap guardian on Moonwell. If the community supports this proposal, Gauntlet will integrate an on-chain vote into the next cycle of risk recommendations for Moonbeam.

Gauntlet, in collaboration with other Moonwell community members, are proposing the following framework and requirements for asset issuers to utilize when proposing to list new asset markets on Moonwell. To read the full forum post and ask any questions, please visit the forum link here. Background To guide best practices in the community, Gauntlet aims to provide a standard framework for assessing market risk when listing assets and enabling assets as collateral, as well as a set of process guidelines for the community to follow when submitting a proposal to list a new asset. Given 2 weeks of notice and strong community buy-in, Gauntlet and Warden Finance will conduct risk assessments prior to new assets being listed, however, these risk assessments are only one step in the process of enabling a new asset. Throughout the asset listing and collateral enablement processes, the goal of risk managers is to ensure that insolvency and liquidity risks are minimized and that when liquidations do occur, that they can be conducted in a healthy and efficient manner, with sufficiently incentivized liquidators. In order to be unbiased, risk managers will not explicitly support any asset listing, but instead provide the below framework as guidance for the community. To safely deploy a new asset or market to the Moonwell protocol, other factors must also be considered, including, but not limited to: oracle risk, smart contract risk, centralization risk and ecosystem support. Again, we defer to auditors with expertise in smart contract risk to provide their assessment. Asset Listing Process 1. Forum Post: The proposal author submits a forum post titled "Add [ASSET SYMBOL] market to Moonwell on [Network]" under the "Community Proposals" category of the Moonwell Governance Forum, providing as much information as possible, including all fields from the “Risk Assessment Checklist” below. 2. Community Check: The Moonwell community verifies the accuracy and completeness of the forum post information provided by the proposal author. 3. Off-chain Signal Vote: The author incorporates community feedback and submits the proposal to the Moonwell Snapshot Portal for an off-chain signal vote. The passage of this signal vote will indicate to risk managers that there is sufficient community buy-in to proceed with their risk analysis procedures. 4. Risk Analysis: The Moonwell community, alongside risk managers, assesses and deliberates on the risks associated with listing the proposed asset. This assessment is based on the data provided by the proposal author and the risk managers’ market risk assessment frameworks. 5. Contract Deployment: Following delivery of the risk managers’ market risk analysis and initial risk parameters, the proposal author leverages either the Moonwell Market Deployer (for Moonbeam and Moonriver networks), or the updated Market Add procedure (for Moonwell v2 deployments on Base and other networks) to deploy the market’s smart contracts and generate proposal call data. Instructions for using the Moonwell Market Deployer can be found here, as well as a sample run. For Moonwell v2 supported networks, such as Base, the documentation for creating a governance proposal can be found here. 6. Onchain Proposal Submission: The proposal is submitted to Moonwell Governance for onchain voting. Upon successful passage and execution of the Moonwell Improvement Proposal, a new market for the proposed asset is activated on the Moonwell protocol. Proposal Requirements New market proposals must first be posted on the Moonwell Governance Forum. * Format the title as “Add [ASSET SYMBOL] market to [Network]” * Post in the “Community Proposals” category * Include all “Required Information” listed below * Update forum post with link to live vote On Moonbeam and Moonriver (Moonwell v1) networks, all proposal contract calls/JSON must be derived from the Moonwell Market Deployer output. On Moonwell v2 networks, such as Base, all proposal contract calls should be derived from Foundry and generated using the procedure found here. The on-chain proposal must include: * JSON derived from the Moonwell Market Deployer or calldata generated by Foundry in the Moonwell Contracts v2 repository. * No additional contract calls should be included * Proposal description in Markdown * Link to original forum post * Titled formatted as “MIP-# Add [ASSET SYMBOL] market to [Network]” Required Information The following information should be included in the forum post when submitting a proposal to list a new asset: General indicates a required field Token Asset Name A description of the project and the token Benefits to the Moonwell Community Resources (Website, Social Media Links, and docs) The proposal author’s contact information The relationship between the author of the new market proposal and the token Social channel metrics (size, activity, and growth) Market Risk Assessment indicates a required field Market cap of the token Total supply The largest central and decentralized exchanges where the token is listed and its respective liquidity Volatility per Gauntlet’s definition https://maker-report.gauntlet.network/int_vol (30 days, 90 days, 1 year) (Gauntlet can also help with this) Average daily trading volume on CEX and DEX Gini coefficient and Herfindahl index of token balances Emission schedule Decentralization indicates a required field List the top 10 token holders, the percentage held by each holder, and tag them if they are known List all of the privileged roles in the token contract. This can include whitelisted EOAs, Multi-sigs, or DAOs. Is the token pausable? Does the token have a blacklist? Smart Contract Risks indicates a required field Codebase & On-chain Activity Provide a Github repository for the underlying token contracts Provide a test suite with code coverage Provide Basescan/Moonscan/Etherscan links with verified contracts Give the age of the token in days Provide the number of transactions in the contract to date Security Posture What audits, if any, were performed? Provide links to the reports if they exist. Does the project have an active bug bounty program? Provide emergency contacts with their estimated response time/availability List additional security and formal verification tools used in the development List all monitoring services used by the token, if any. Upgradability Is it upgradeable? If yes, answer the following questions: * Who is authorized to make an upgrade? * Can an upgrade happen instantaneously or is there a time-lock delay? * Which components are upgradeable? * How does the upgradeability design work? Who manages it and how are upgrades performed? * Does it emit an event when the implementation is updated? Oracle Assessment indicates a required field Chainlink oracle price feed address 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? * On what network does the underlying asset exist? * 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? * Is there a way to verify proof of reserves (PoR) on the same network as the market? * Please provide an analysis of the price deviation from the underlying asset; ie. over the last 180+ days, how much has the price of the token on centralized or decentralized exchanges deviated from the price of the underlying asset? * What specific events might cause the price to “depeg” or no longer be the same as the price of the underlying asset? Initial Asset Risk Parameters Please see the corresponding section of the forum post for detailed information on initial asset risk parameters. Gauntlet Guidelines Please see the Gauntlet Guidelines in the corresponding section of this forum post. Warden Guidelines Please see the Warden Guidelines in the corresponding section of this forum post. Next Steps Please cast your vote in favor of the proposed asset listing framework if you agree, or against it if you do not.

In the nascent ecosystem of interoperable blockchains, where seamless asset movement governs evolution, the emergence of VDOT transcends mere tokenization. Its inherent interweaving with the Moonbeam protocol, via direct integration within the native app, surpasses transactional utility, forging a strategic symbiosis. This synergetic coupling, mirrored by VDOT's esteemed presence on StellaSwap, a pivotal node within the Moonbeam firmament, underscores the mutual recognition of shared values and ambitious visions. Therefore, with an almost preordained inevitability, VDOT stands poised to join the prestigious consortium of assets supported by MoonWell. Each constituent within this carefully curated portfolio represents a meticulously chosen building block, meticulously woven into a tapestry of opportunity for its discerning user base. VDOT, with its unwavering commitment to the tenets of decentralization, its robust operational architecture, and its thriving, engaged community, epitomizes the very essence that MoonWell seeks to empower and champion. Adding VDOT is not merely an act of portfolio expansion; it signifies the forging of a potent nexus, a confluence of purpose in the service of progress. For MoonWell users, it unlocks a previously unexplored frontier, an opportunity to harness the multifaceted potential of VDOT within the dynamic Moonbeam environment. Conversely, for VDOT, it grants access to a vibrant, engaged community and a platform renowned for its unwavering dedication to user experience and cutting-edge innovation. The inclusion of VDOT within MoonWell transcends the realm of strategic positioning; it orchestrates a symphony of purpose, a harmonious blend of ambition and shared values. This union represents a quantum leap not just for MoonWell and VDOT, but for the broader blockchain landscape, where interoperability and collaborative spirit pave the way for a bright, interconnected future. In this synergistic waltz, both platforms ascend, their combined radiance illuminating the path for others to follow.

As described in the Moonwell RFP forum post around bad debt, there are two paths forward to liquidate the Nomad Collateral. One of these approaches is the standard approach, and the other is defined as the alternative approach. The community can choose between the following options: 1. Standard approach - with curly as community signer 2. Alternative approach - with curly as community signer 3. Do nothing Both options 1 and 2 are beneficial to the overall health of Moonwell's liquidity and we hope to see the community vote for either of these options to restore liquidity to the markets.

ACA is already supported for bridging directly through the moonbeam app. It is tradeable via StellaSwap. Acala is an official partner of Moonbeam. ACA is a natural next asset to add to MoonWell's pool of supported assets.

Summary This proposal is part of the Roadmap for the Moonwell Community on Nomad Incident Recovery recommended by Gauntlet. The community has four options to choose from in order the address the liquidity concerns in the FRAX market on Moonbeam: a. Use the remaining Nomad Collateral from Bad Debt b. Use Protocol Reserves c. Use funds from both options a/b d. Take no action Given that both the Nomad Collateral and Protocol Reserves are meaningful in size, it may be best for the community to consider using both these sources of liquidity. Background Gauntlet has been working with community members to develop a roadmap, informing them about the options available for managing the assets affected by the Nomad exploit and the resulting bad debt. Currently, Moonbeam still holds Nomad assets as reserves and in collateralized positions. Concurrently, the FRAX market on Moonbeam faces outstanding bad debt due to limited on-chain liquidity. Measures can be implemented to recover the value of these exploited funds and use them to improve the liquidity environment of FRAX on Moonbeam. Gauntlet presented several options to help the community in repaying this debt and enhancing liquidity. Nomad Collateral available for Redemption Here are the total Nomad collateral funds and their estimated value via the recovery refund discount: !Screenshot 2023-12-28 at 12.22.02 pm.png *Prices of assets via chainlink as of 2023-12-20 21:59:00 UTC Should the community decide to take a selection of the nomad assets to exchange them for recovery funds, a community member would undertake the following actions to recover these assets and repay FRAX liquidity: Propose a Governance vote to transfer Nomad Collateral Funds from the deprecated Nomad liquidity pools to a Multisig wallet: The removal of Nomad Collateral will need to be decided by the community, with options being either a reduction in reserves or the potential liquidation of bad debt positions and seizure of collateral. Gauntlet recommends that the Multisig Wallet be controlled by multiple community stakeholders to ensure the security of the assets throughout the recovery process. The Community Member responsible for the recovery process will need to follow the Nomad process. The responsible party will need to: Complete KYC via the Nomad Recovery Portal 1. This verification can take up to 1–3 weeks for DAOs. Transfer Nomad Assets to the Nomad Recovery Fund via a bridge to Mainnet. Receive an NFT. Exchange the NFT for mainnet ETH, BTC, USDC. After receiving the recovery funds from Nomad, the responsible party will need to exchange the assets for FRAX and bridge the assets back to Moonbeam. The Moonbeam ecosystem does not have substantial liquidity to swap these assets on their local DEXes. Gauntlet proposes considering the mainnet for asset swaps, due to its generally lower slippage. Currently, the FRAX Ferry has 3,952,468 FRAX available to bridge over to the Moonbeam ecosystem. The FRAX recovery assets would need to be used to resolve liquidity issues within the FRAX liquidity pool. This can be achieved through multiple avenues but must be decided by the community. The options are: a. Use the add reserves function 1 to add liquidity to the FRAX pool for suppliers to remove their position. b. Disburse FRAX to impacted FRAX suppliers. c. Pay down the FRAX bad debt positions. Protocol Reserves Here are the total Protocol reserve funds: !Screenshot 2023-12-28 at 12.23.13 pm.png *Prices of assets via chainlink as of 2023-12-20 21:59:00 UTC For this option, a community member must undertake the following actions to recover these assets to repay FRAX liquidity: 1. Propose a Governance vote to transfer Protocol Reserve Funds from the listed liquidity pools to a Multisig Wallet for swapping the reserves for FRAX. - The liquidity of DEXes on Moonbeam is a concern. Swapping $54k of GLMR for FRAX could result in approximately 5% slippage. Therefore, it is advisable to collaborate with Market Makers to enhance FRAX liquidity within the local DEXes or to move the assets off-chain to locate more favorable liquidity sources. 2. The reserved FRAX assets would then be used to resolve liquidity issues within the FRAX liquidity pool. Similar to the Nomad Collateral Recovery Funds, the options are: a. Utilize the add reserves function to inject liquidity into the FRAX pool, enabling suppliers to withdraw their positions. b. Allocate FRAX to specific suppliers. c. Reduce the FRAX bad debt positions. Please note: This is an initial Snapshot vote to determine which funds (Nomad collateral, protocol reserves), if any, should be used to address FRAX liquidity concerns. If options A, B, or C are chosen, additional governance proposals will be required to determine which community member(s) will handle Nomad asset redemption and swapping, transfer Nomad collateral and/or protocol reserves to multisig, distribution of newly swapped for FRAX, etc.

Summary Warden Finance proposes to manage Aerodrome’s liquidity incentives allocation for the DAO. This proposal is conditional upon the success of the snapshot vote proposing to allocate 52.7M WELL tokens to incentivize Aerodrome DEX liquidity. The Aerodrome liquidity manager role would complement our mandate to manage Moonwell Base reward distributions, as well as the risk management and analytics services that we already provide to the DAO. Context The Aerodrome liquidity manager is tasked with both managing WELL token incentives on Aerodrome, as well as keeping the Moonwell community informed of performance levels and any distribution changes in order to increase the liquidity of WELL on Base. This proposal aims to enable the Warden Finance team as liquidity manager for Aerodrome DEX incentives on behalf of the community. About us Warden Finance is a team of software engineers and financial analysts that have extensive experience in crypto, finance and software. We specialize in helping DeFi protocols manage risk and surface meaningful data with the help of custom tooling and in depth on-chain analysis. We strive to make DeFi more secure, comprehensible and empower its users to participate along with us. In the past years, not only have we been closely collaborating with the Moonwell team, but we’ve also been working with multiple other notable projects and DAOs like AAVE, Compound, Uniswap, Euler, and Notional. Our biggest contribution to DeFi is our open risk & analytics platform. We currently provide bi-weekly analysis of Moonwell’s risk parameters and propose parameters for new asset onboardings to Base in efforts to foster Moonwell’s growth. We believe that we have the right expertise and tools to help the DAO allocate DEX liquidity rewards. Proposal Motivation Our goal is to maintain deep liquidity levels for the WELL token on Base by allocating the incentives on Aerodrome in the most capital-efficient manner possible. Key Principles Quantitative-based approach: Our allocation optimization methodology maximizes capital efficiency by pondering the expected value of each individual strategy. Transparency: Data points along with methodology will be available for the community. We will also provide monthly performance reports to the community and communicate any change. Methodology Two strategies are available to the Aerodrome liquidity manager in order to provide incentives for users to LP. Bribing - Bribe veAERO holders using WELL tokens to vote on the WELL / WETH gauge, increasing AERO rewards allocation to WELL / WETH LPs. Direct incentives - Offer WELL rewards to WELL / WETH LPs. Every epoch, our model will determine whether it is expected to be more favorable to bribe veAERO holders or to incentivize the pool directly. If the expected value of bribing is positive, then we will allocate rewards towards bribing veAERO holders to vote on WELL / WETH gauge. Otherwise, we will allocate WELL incentives to directly incentivize LPs. Additionally, as a launch partner for Aerodrome, Moonwell DAO may receive a veAERO voting power grant. Should the DAO receive the grant, we will ensure the voting power is directed towards increasing AERO incentives for WELL / WETH LPs. veAERO tokens will be re-locked on a regular basis in order to maintain voting power. Scope Warden Finance is offering to manage the Aerodrome liquidity incentives for the total duration of the AERO incentives program, corresponding to 2 years or 100 epochs of 7 days.

Following the result of the snapshot “Add more utility to the $well token” where 99.7% of the community said they would like to add more utility to the $well token I would like to start the discussion of some possible alternatives. Since there are multiple ideas on how to increase the utility of the well token and we cannot do everything in one-go, the idea behind this snapshot is to choose one to start. My idea is to do this in 2-steps, in a first step the community should choose what’s the best option to start adding utility to the $well token and a second step we will go into more detail with the option that the community selected. We will then create a new snapshot with all the details and logic of the implementation of the option selected, so then someone with technical knowledge can implement it(for that probably we will need support from someone from Lunar Labs, for example Luke). On this 2nd phase I can help with creating some mockups and technical diagrams (user flows, architecture, etc…), since I have a bit of technical knowledge, since I was a developer in the beginning of my career, even though currently I’m a Product Owner in a traditional company. Find below the options I suggest to increase the utility of the well token: Tier system : o We can create different tiers based on the amount of well staked. I suggest 3 tiers:  Base tier : <400000 well  Intermediate tier : >400000 well and <1000000 well  Advanced tier : >1000 well o If we are in a lower tier we would receive less rewards when lending and pay more when borrowing, but if we are for example in advanced tier we would receive more rewards and pay less when borrowing Exclusive markets for token holders o We can expose specific markets for users that are above a certain threshold of staking, or BETA markets with high rewards before exposing them to all the audience. I would suggest above >400000 well, since this is the threshold to create a governance proposal. Option to stake for 1 year with the possibility of withdrawal. o We would provide the option of staking for 1year without the possibility of withdrawing the funds. The minimum of staked well should be 400000 well. The advantage of the user is with this option we would give more well rewards compared to the currently withdrawal period (10 days) None of the above, I have a better idea o Please write your idea in the comments Thanks everyone!

Aerodrome DEX Liquidity Incentives Forum Proposal: https://forum.moonwell.fi/t/aerodrome-dex-liquidity-incentives/585 Summary I propose allocating ~52.7M currently unallocated WELL tokens to be used to incentivize an Aerodrome (DEX) liquidity pool for the WELL token on Base. This allocation will be used to incentivize veAERO holders to vote for this new WELL-WETH pool on Aerodrome, increasing AERO emissions for the pool and boosting useful liquidity for the token on Base. What is Aerodrome? Aerodrome is a decentralized exchange (DEX) that is launching on Base on August 28th. It aims to be Base’s “central AMM and liquidity layer”. Aerodrome follows in the footsteps of its sister protocol Velodrome on Optimism, which is far and away the most popular AMM on the network, currently holding $203M of the network’s $748M TVL, or Total Value Locked. https://medium.com/@aerodromefi/introducing-aerodrome-9af62848b876 https://velodrome.finance How Does Aerodrome Work? Aerodrome functions differently than traditional Uniswap v2 or v3 AMMs. Instead of directly adding incentives to a pool, incentives are used to encourage veAERO holders to vote for a specific pool. The more veAERO holders vote for a pool, the higher the AERO emissions (rewards) will be for that pool. AERO can be locked for veAERO and voting takes place on a weekly basis, known as an “epoch”. By leveraging this mechanism, the Moonwell community can effectively steer AERO emissions toward this newly established WELL-WETH pool, stimulating liquidity and aligning incentives. This not only attracts more liquidity providers but ensures a more dynamic and responsive liquidity environment for the WELL token on Base. For more information regarding Aerodrome mechanics, please visit the Velodrome (sister protocol) documentation page or watch this explainer video. https://docs.velodrome.finance/liquidity https://www.youtube.com/watch?v=gjVov4AxZAs&feature=youtu.be Motivation By creating and incentivizing an Aerodrome liquidity pool for the WELL token, we can encourage LP participation and boost useful liquidity for the token on Base. This initiative aligns with the goals of: --Increasing exposure and utilization of the WELL token on Base. --Creating additional opportunities for Moonwell community members and WELL token holders. --Those providing WELL liquidity to the pool will receive AERO emissions, which can be locked for veAERO and used to vote/direct more AERO incentives to the WELL pool. --Decreasing slippage for those looking to swap the WELL token on Base. --Leveraging the opportunity to become an Aerodrome launch partner ahead of their August 28th launch date, enhancing Moonwell's standing in the Base ecosystem. --Velodrome, the sister protocol of Aerodrome on Optimism, is far and away the most popular AMM on the network. There is a good chance that Aerodrome rises to a similar level of prominence on Base. --By creating a pool in time for their Aug 28th launch date, Moonwell will be able to participate in comarketing and be incorporated into their launch announcements. Implementation Details --Allocation: As pointed out in 0xrobinhood’s recent snapshot proposal, 1.05% of the WELL token supply (52,725,802.60 WELL) is currently unallocated, following public sale refunds. https://snapshot.moonwell.fi/#/proposal/0xe49bdd6e8be600e122c394c3c740e432169252881351f7beb6f3e2c8ede974a9 --Utilization: This unallocated 1.05% of the WELL token supply will be utilized to incentivize veAERO holders to vote for the WELL-WETH pool on Aerodrome. --This will in turn increase AERO emissions (rewards) on the pool, boosting LP participation and liquidity. --Incentives Management: An additional Snapshot proposal will be required to appoint an Aerodrome liquidity manager(s) from the Moonwell community or contributor pool. --This person(s) or entity will be tasked with both managing WELL token incentives on Aerodrome, as well as keeping the Moonwell community informed of performance levels and any distribution changes. Voting Options --Yes: A "Yes" vote signifies your support for the creation of a WELL - WETH pool on Aerdodrome and the allocation of ~52.7M WELL tokens to be utilized as incentives for this new pool. --No: A "No" vote indicates your preference for the status quo; no changes should be made. Conclusion This proposal marks a significant and timely opportunity for the Moonwell community, laying the foundation for further growth and an expanded presence in the Base ecosystem. By acting quickly to both establish and incentivize a new WELL-WETH pool on Aerodrome, we can strategically align ourselves with the anticipated Aerodrome launch on August 28th. This alignment should not only increase exposure to Moonwell but also foster greater community engagement. By leveraging Aerodrome’s unique mechanisms, we can bolster useful liquidity of the WELL token, create new opportunities for WELL holders, minimize slippage for those looking to swap, and fortify our standing within the rapidly evolving Base ecosystem.