Moonwell Asset Listing Framework v2

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.