Moonwell Community Votes on Emergency Risk and Reserve Proposal

Foresight News reported that the DeFi lending protocol Moonwell has opened voting on an emergency risk and reserve proposal. According to Foresight News, the proposal would apply Anthias Labs' latest risk and reserve recommendations to Moonwell trading pairs on the Base and OP mainnets. The proposed changes include updating risk parameters for trading pairs with limited liquidity, higher oracle risk, or those being phased out. It also calls for revising the interest rate model on Base mainnet to reduce excessive interest accrual on outstanding bad debt. In addition, the proposal would withdraw available protocol reserves from the Base and OP mainnets, convert them into USDC, and use the funds to recapitalize the USDC market. The resulting USDC would be used to repay bad debt in the USDC market. Foresight News previously reported that Moonwell was attacked in August, resulting in losses of about $8.7 million.