Moonwell Security Council - Initial Roster Ratification

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.