Moonwell

I am pleased to propose the addition of the Virtuals (VIRTUAL) token. $VIRTUAL is the Virtuals Protocol’s governance and utility token, designed to power the onchain co-ownership of AI agents. It underpins the protocol’s ecosystem, facilitating tokenized interactions across Base and Ethereum, and aligns incentives for all participants in the AI agent economy.

General Information

Token: VIRTUAL

$VIRTUAL as the Base Asset for Agent Tokens

• Liquidity Pairing: $VIRTUAL serves as the paired token in liquidity pools for each AI agent. The creation of new agents requires a predefined amount of $VIRTUAL tokens, locking liquidity and generating deflationary pressure.
• Routing Currency: Transactions for purchasing agent tokens are routed through $VIRTUAL, promoting demand for the token and establishing it as a core currency in the ecosystem.
• Per-Inference Payments: Users make onchain payments in $VIRTUAL for agent interactions, directly linking token utility to agent functionality.

Benefits to the Moonwell Community:

• AI Agent Exposure and Offering: Listing $VIRTUAL on Moonwell introduces a high-utility token integrated into the onchain AI agent sector. This expansion offers Moonwell users access to lending and borrowing opportunities tied to AI-driven ecosystems, driving protocol engagement.
• Recent Demand and Deflationary Mechanics: $VIRTUAL’s deflationary tokenomics, driven by its role in AI agent liquidity pools, ensures sustained demand and scarcity. Integrating $VIRTUAL into Moonwell allows the protocol to offer an asset with possible value growth. The VIRTUAL token has also seen consistent demand in the Base ecosystem, and thus there is a unique opportunity for lending protocols to list it for their users.

Resources and Socials

• Virtuals Protocol Twitter
• Token Documentation
• Whitepaper

Sky Social Channels Metrics

• Twitter: 152k followers

Market Metrics

• Market Cap: $4,319,399,580
• Minimum/Maximum Market Cap (Last 6 months): $22M (July) / $4B (January)
• Circulating Supply (on Base): 1,000,000,000
• Maximum Supply: 486,684,007 VIRTUALS
• 30D Total Volume (CEX/DEX) on Base: $11B
• 24 Hour Trading Volume: $650M

Liquidity on Decentralized Exchanges:

• Uniswap V3 (Ethereum) -2% Depth: $91,816.49
• Uniswap V2 (Base) -2% Depth: $126,658
• Aerodrome Slipstream (Base) -2% Depth: $191,102

Herfindahl Index:

The Herfindahl-Hirschman Index (HHI) measures token concentration among holders, with higher values indicating greater centralization. Currently, the HHI for the VIRTUAL token on the Base network is 0.020, a level generally considered indicative of low concentration and high decentralization.

This suggests that the token’s distribution is fairly balanced among its holders. Notably, the token’s early introduction into the Base ecosystem positions it for continued growth.

Decentralization

• Top 10 Holders
• Token Contract: 0x0b3e328455c4059EEb9e3f84b5543F74E24e7E1b
• Privileged Roles in Token Contract: None
• Blacklist Functionality: There is no blacklist or pause functionality within the VIRTUAL token contract.
• Token Standard: ERC20

Smart Contract Risks

• Codebase and onchain activity:
  • Github Repo
  • Total transactions: Over 17,888,255 on Base
  • Age of token in days: 378 days
• Security Posture: Here is a google drive containing security audit reports. https://drive.google.com/drive/folders/1n4-i245j8_0Ez1XjHSjiqm-yszrbtiXF?usp=sharing. Additionally, there is a bug bounty program in development to be released soon.
• Upgradability: The VIRTUAL token is not upgradeable.

Oracle Assessment

• Oracle Price Feed Addresses:

  • VIRTUAL-USD, Base Feed address: Moonwell Contributors have requested the creation of a Chainlink price feed for VIRTUAL and it is currently in development.

• Name: 0xMims

• Telegram): Mims0x

• LinkedIn

• Twitter: 0xMims

• Delegate Address:

  • 0xMims: 0x657D07095b082BB71ebD93F549f407A97f49094F

• Relationship with Token: I am a Moonwell community member and delegate. I bear no relationship with the VIRTUAL token on a personal or professional level.

Conclusion

Listing the $VIRTUAL token on Moonwell’s lending and borrowing markets presents a strategic opportunity to drive protocol growth and engagement. Integrating $VIRTUAL, a high-utility governance and utility token within the rapidly expanding onchain AI agent sector, aligns Moonwell with one of the leading Base-native projects.

I am opening this proposal to the community to review, discuss, and provide feedback on this proposal to ensure its success and alignment with our shared vision for a secure and decentralized onchain financial future.