WE
Moonwell
Mechanism map
- Delegated Governance
- Governance Token
- Value Transfer
- Yield-Bearing Governance Stake
Represents value derived from indirectly influencing the decision-making in the Moonwell community governance by delegating the voting power to a suitable representative.
Value drivers
represents directly participating in the governance
Delegated and self-delegated WELL can be used in onchain and offchain protocol governance.
[82] = binary
represents value derived from influencing the outcome of voting on the proposals
Reflects the value originating from participating in decicision-making in the Moonwell Governance.
See the VCM section for details on governance.
[32] = ƒ([82], user_vote_allocations, user_strategy_representation)
user_vote_allocations — is the representation of allocations of votes by the user during the votinguser_strategy_representation — is the representation of the user's governance outcome preferencesRepresents value derived from controlling the decision-making in the Moonwell community governance by directly voting on proposals.
The Moonwell governance is split into an offchain and an onchain part, implemented via the long since standard Improvement Proposal mechanism.
Proposals that do not require upgrades or changes to the Moonwell codebase utilize Snapshot voting.
MIPs, which can be created by any user with voting power exceeding the current proposal threshold, are voted for on-chain for three days after the proposal creation. The scope of these proposals are codebase changes and contract upgrades.
Value drivers
reflects the act of delegating WELL for governance purposes
In order to confer voting power, WELL must be delegated or self-delegated.
[81] = binary
represents extraction of indirect governance participation value
Represents extraction of tangible and/or intangible governance value derived from voting power delegation, i.e., the realisation of indirect governance participation.
[31] = ƒ([81], delegate_vote_allocations, user_strategy_representation)
delegate_vote_allocations — is the representation of allocations of votes by the user's delegate during the votinguser_strategy_representation — is the representation of the user's governance outcome preferencesWELL is used as the sole token accepted as currency for the reserve auctions conducted every 6 hours, which allow the users to purchase reserve tokens (USDC, WETH, cbETH, &c) at a variable discount compared to the present market rates.
Value drivers
represents spending WELL to purchase discounted reserve tokens in reserve auctions
WELL is used as the sole token accepted as currency for the reserve auctions conducted every 6 hours, which allow the users to purchase reserve tokens (USDC, WETH, cbETH, &c) at a variable discount compared to the present market rates.
[1] = ƒ(exchange_volume, discount_rate)
exchange_volume — volume of WELL spent by the userdiscount_rate — effective discount rate for the userMoonwell possesses a Safety Module where the users can stake their tokens (WELL among the accepted) to provide insurance to the protocol against shortfalls. In return, they receive an allocation of $WELL rewards.
Value drivers
reflects staking WELL into the Safety Module in order to receive additional rewards
WELL can be staked in the Safety Module on Base, Optimism, or Moonbeam to receive an equivalent quantity of stkWELL. The Safety Module backstops the protocol against "Shortfall Events" (smart contract exploits, liquidation failures, oracle failures). Up to 30% of staked assets may be slashed in such events.
In order to unstake WELL from the Safety Module, there is a required 7-day cooldown period.
Staked tokens are automatically self-delegated.
[7] = ƒ(staking_period, amount_staked, price_at_staking)
staking_period — the duration of the lock-up periodamount_staked — the amount of tokens locked up by the userprice_at_staking — the price of the locked token position at the moment of locking; defines the locked value together with the lockedreflects the rewards a safety module staker receives
Staking tokens into the Safety Module nets the user rewards denominated in $WELL. Details of the rewards computing mechanism are not made available by the protocol.
[2] = ƒ([7], rewards_allocated)
rewards_allocated — rewards allocated to the given staker