Moonwell Ecosystem Grant Draft Proposal

Hi Moonwell team,

thank you for submitting your proposal. After reviewing the proposal and reviewing what online information about the team and their past projects is available, the Grant Committee has the following questions and feedback. The following feedback is aligned with the sections of your proposal.

Goal:

It is noted that the grant seeks to improve TVL and help build connected contracts use cases. We specifically would like teams to pick one (and only one) of the following two options as the main goal for their application:

  • Maintain and Grow Activity (active users, transactions, TVL)

OR

  • Building Connected Contracts Use Cases (using XCM and other message passing protocols)

Will you please pick which one you feel most closely fits your proposal?

USE OF GRANT

In is stated in this section that: “Engaging with other grant recipients, the Moonwell community will collaboratively promote these incentives,”

Will you please provide details on the specifics of these engagements, which teams, what types of promotions, and the level of collaborative discussions had to date?

Is it proposed that any of the grant will be used for these purposes (even if in the form of special incentives to partners that Moonwell collaborates with)?

Motivation

“By endorsing this grant, the Moonbeam community is not only backing a proven model of success” Will you please provide some examples of the success directly attributed to the use of grant funds?

Every GLMR that the community ends up voting for Moonwell to receive, is a GLMR less that another project might receive, so it would be useful to understand how this proposal will provide the most value to the community — outside of the info provided in the KPIs. Why is it important that grant funds be put to rewarding liquidity providers over other uses?

Project Overview and Relevant KPIs

Thank you for including your code audits in the submission. It’s also notable that Moonwell also has Immunifi bug bounties. However, in the last tranche one of the teams that submitted a proposal had a bug that was exploited leading to loss of funds, due to an issue with a code upgrade. Will you please detail the steps and process which Moonwell uses to decrease the risk of such an event on Moonwell DeFi services?

How does Moonwell incentivize liquidity providers outside of grant funds? Is there a long term strategy to develop self-sustaining liquidity pools that don’t rely on the use of grant funds?

In the historic KPI graphs provided, it’s appears that there is a cliff when the liquidity incentives run dry. Is it possible that grant funds entirely consumed by liquidity providers does not support long-term growth and the long-term trendline would remain the same without liquidity incentives, or do you have any KPIs or analysis to indicate otherwise?

Team Experience

Please provide full details and background on all key team members as per the template “include names of team members and relevant experience” It’s understood that this information may have been included in previous grant requests, however, the community may not be aware of team changes, and there may be new community members who are new to Moonwell.

Timeline and Milestones for Use of Grant

The referenced Grant Transparency Report was last updated in Dec 2022, and the Grant Dashboard only provides high-level information on emissions. The Moonwell governance portal does provide information on emissions, but it is not user friendly (one must look through each proposal to determine each emissions during the emissions period). Is there aggregate information in an easy to read format that shows the changes of emissions of the last grant which Moonwell received, or is this something that could be provided in the future?

Please advise under what conditions Moonwell might pause and restart emissions and how the final decision would be made?

Vision of Success

A reference has been provided in the vision of success, but no definition of success onward from that reference point, other than anticipated QoQ growth. Please provide a finer definition of Moonwell’s definition of success, using the SMART framework.

Rationale
Will you please provide any details of the impact to Moonwell if the community does not provide a grant in this tranche?

Steps to Implement

It is understood that Moonwell governance is at the end of the decision making for where grant funds should be allocated if the proposal is successful, but it would be helpful to understand a previous circumstance where emissions were changed on target LPs by the Moonwell community based on where the community saw the need. In other words, it’s not clear why the allocations cannot be predetermined, and the reasons and occasions on why they would need to be changed. If there are certain criteria that establish the allocation at least at a baseline, then that should be provided. If there are criteria that would necessitate a governance proposal for a change, then those criteria should be provided.

Please provide an understanding to the community of WELL decentralization and governance / voting process since it forms such a key factor in determining where the end allocation of grant incentives are applied Moonwell markets.

UPDATES TO PROPOSAL

Please note that you have until July 14th, 11:59 PM UTC to make changes to your proposal. A list of changes based on community feedback should be added to the “Updates’’ section of the proposal and any changes should be reflected in the text of the proposal itself

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