In the ever-evolving landscape of onchain finance, Moonwell is taking another big step forward. Today, we're thrilled to announce the activation of the Moonwell protocol on Optimism, a move that promises to reshape the lending ecosystem on the network and unlock unprecedented opportunities for our community. This expansion isn't just about entering a new ecosystem; it's about embracing a shared vision of scalability, accessibility, and community-driven innovation.

The Optimism Advantage

Optimism, an Ethereum Layer 2 (L2) solution, has been making waves in the onchain world since its deployment in 2021. By utilizing Optimistic Rollups, the network significantly enhances scalability and reduces transaction costs while maintaining the robust security of Ethereum. Recent developments, such as the implementation of EIP-4844 and "blobspace", have further slashed transaction fees, aligning perfectly with Moonwell's mission of making onchain finance accessible to everyone, everywhere.

The Superchain Vision

Optimism isn't just another network; it's a key player in the broader Optimism "Superchain" ecosystem. Built on the OP Stack, an open-source software suite designed to enhance Ethereum's scalability and modularity, Optimism shares both technological and philosophical foundations with Base—a network incubated and scaled by Coinbase and part of the Superchain, where Moonwell has established a strong presence since its activation in August 2023.

The Superchain's interoperability has the potential to unlock many exciting possibilities:

1. Frictionless navigation across interconnected networks, offering users an unparalleled experience

2. Optimized liquidity flows and capital efficiency

3. A cohesive ecosystem that catalyzes mass adoption, transforming the way we interact with the global onchain economy

Moonwell's Optimistic Future

By activating on Optimism, Moonwell is positioning itself to:

1. Become the leading lending protocol on Optimism: Moonwell has a unique opportunity to establish itself as the go-to lending solution on the network, entering a market where the current leaders, such as Aave, have room for innovation and improvement.

2. Align with Shared Values and Ecosystem Goals: Optimism’s commitment to decentralization, security, and community governance resonates deeply with Moonwell's ethos. The Optimism Collective Constitution and its Retroactive Public Goods Funding (RetroPGF) initiative align with our vision of fostering an open, community-driven ecosystem.

3. Access Substantial Funding and Incentive Programs: Optimism's generous funding initiatives provide a springboard for growth. Moonwell has already secured Retro PGF3 and PGF4 grants of 54,658 and 80,156 OP tokens, respectively. All Retro PGF funding will be used to bootstrap markets and drive user adoption.

Proposed Markets and Security Measures

Moonwell on Optimism launches with a carefully curated selection of markets, including ETH, wstETH, cbETH, rETH, WBTC, USDC, USDT, DAI, and OP.

Our intuitive, easy-to-use app ensures a seamless lending and borrowing experience, all while maintaining full control and custody of your assets.

To ensure the utmost security:

• All markets are secured with industry-standard Chainlink Price Feeds

• Halborn Security have performed thorough code reviews to verify deployment parameters

• Gauntlet, a risk management contributor to Moonwell, will conduct regular economic simulations and adjust risk parameters

• Initial Collateral Factors have been set to 0% to protect against known vulnerabilities

Community Governance and Future Steps

True to our commitment to decentralization, the Moonwell protocol on Optimism is governed by WELL token holders and upgraded through the use of both onchain and Snapshot governance mechanisms. The community has already taken significant steps towards this goal through the passage of MIP-X01. This first-of-its-kind multi-network governance proposal activated the WELL token on Optimism, facilitated its cross-network transfer capabilities, and upgraded Moonwell Governance contracts to support governance on Optimism. Future proposals will seek to enable liquidity incentives across all Optimism Core Markets and recommend adjustments to key market risk parameters.

These initiatives underscore our unwavering commitment to community-driven governance and the continuous expansion and improvement of the Moonwell protocol. As we forge ahead, the Moonwell community remains resolute in its mission to empower token holders and safeguard the robust, onchain finance of the Moonwell ecosystem. Our collective vision drives us to innovate, ensuring that Moonwell continues to evolve as a cornerstone of decentralized finance, shaped by the very users it serves.

Conclusion

The activation of Moonwell on Optimism marks a thrilling new chapter in Moonwell’s journey. By harnessing the power of Optimism's advanced scaling solutions, shared values, and robust funding opportunities, we're poised to significantly expand Moonwell's reach and impact, bringing the benefits of onchain finance to a broader audience.

This move isn't just about growth; it's about realizing our vision of accessible, efficient, and community-driven onchain finance. As we step into this new frontier, we invite our community to join us in shaping the future of onchain finance.

Explore our app at moonwell.fi and become a part of our vibrant community. If you have questions, ideas, or simply want to connect with other like-minded individuals, join us on the Moonwell Discord.

Together, let's embrace this Optimistic future and take Moonwell to new heights on the Superchain!