Moonwell

Proposal Details

I propose the activation of an EURC (Circle’s Euro-Backed Stablecoin) market to Moonwell’s Base deployment, positioning Moonwell as an early adopter of this significant asset. This strategic move would align Moonwell with Base’s vision of becoming a major hub for onchain finance and expand the protocol’s stablecoin offerings to include both US dollar and euro-backed assets.

Note from Gauntlet: We propose onboarding EURC on Moonwell’s Base deployment due to its status as a fully-backed, euro-pegged stablecoin issued by Circle, in compliance with MiCA. We believe this will contribute to a more diverse stablecoin market and offer new opportunities for liquidity growth.

Asset: EURC
Address: 0x60a3E35Cc302bFA44Cb288Bc5a4F316Fdb1adb42 Oracle Feed: EUR/USD

EURC Overview

EURC is Circle’s Euro-backed stablecoin, one of the first mainstream euro-pegged stablecoins to be released. Alongside USDC, EURC is part of Circle’s effort to provide reliable and compliant stablecoin solutions across multiple ecosystems, including Ethereum, Avalanche, Solana, and Stellar. It is redeemable 1:1 for euros and can be used for cross-border payments, making it an attractive option for global financial operations.

Benefits to the Moonwell Community

• Early Adoption Advantage: By supporting EURC early in its life cycle, Moonwell positions itself as a leader in offering euro-denominated onchain lending and borrowing.
• Market Diversification: Expands the range of stablecoins offered on Moonwell, allowing users to access euro-denominated liquidity.
• Increased TVL and Revenue Potential: The addition of EURC opens up opportunities for liquidity growth and borrowing demand, which can drive increased protocol revenues.
• Strategic Alignment: Supports Base’s vision of becoming a hub for onchain finance and enhances Moonwell’s integration with Circle’s growing suite of stablecoins.

Gauntlet Risk Parameter Recommendations

Gauntlet, Moonwell’s lead risk manager, has provided the following initial risk parameter recommendations for the EURC market.

Please note that Gauntlet serves as Cap Guardian for Moonwell, which allows for the dynamic adjustment of the supply and borrow caps as market demand increases, without requiring additional onchain governance proposals.

Risk Parameter Recommendations

Parameter	Value
Collateral Factor (CF)	83%
Supply Cap	4.2M EURC
Borrow Cap	3.9M EURC
Protocol Seize Share	3%
Reserve Factor	10%

Interest Rate Model Recommendations

IR Parameter	Recommended Value
Base Rate	0
Kink	0.9
Multiplier	0.056
Jump Multiplier	9

Supporting Data

• Primary liquidity source: Aerodrome, with over $8M TVL in EURC-USDC pools
• Recommended supply cap: 4.2M EURC (40% of circulating supply)
• Recommended borrow cap: 3.9M EURC
• EURC Interest Rate Curves: Aligned with those of USDC

Conclusion

Adding EURC to Moonwell on Base represents a strategic step forward in diversifying our stablecoin markets and solidifying our position in the evolving onchain financial landscape. By introducing euro-denominated lending and borrowing, we not only expand our protocol offerings but also open doors to a broader user base, potentially driving significant growth in both TVL and protocol revenue.

This move aligns perfectly with Base’s vision of globally accessible onchain finance, positioning Moonwell as an early leader in euro-denominated DeFi. Our early adoption of EURC demonstrates Moonwell’s commitment to innovation and our readiness to support the next wave of stablecoin developments in the Base ecosystem. By approving this proposal, we take a decisive step towards enhancing Moonwell’s global appeal, diversifying our liquidity sources, and strengthening our alignment with both Circle and Base.

This addition not only benefits our existing community but also paves the way for Moonwell’s continued growth and relevance in the rapidly growing onchain economy.

Voting Options

• Aye: Approve the addition of EURC as a new market on Moonwell’s Base deployment
• **Nay:**Reject the addition of EURC as a new market on Moonwell’s Base deployment
• Abstain: Choose to abstain from voting on this proposal