Alisa Davidson
Printed: February 19, 2026 at 3:08 am Up to date: February 19, 2026 at 3:08 am
Edited and fact-checked:
February 19, 2026 at 3:08 am
In Temporary
Moonwell’s proposed plan facilities on compensating customers affected by the cbETH incident whereas consolidating the Apollo deployment into the primary DAO by means of an MFAM‑to‑stkWELL transition.
Decentralized finance (DeFi) platform targeted on lending and borrowing, Moonwell introduced {that a} proposed restoration plan for customers affected by the cbETH Core Market incident on Base is now obtainable on its governance discussion board. The proposal additionally outlines a path to combine the Moonwell Apollo (MFAM) neighborhood into the broader Moonwell ecosystem ruled by WELL.
Moonwell reported that between February 14th and 18th, 2026, a bunch of customers supplying cbETH collateral on Base skilled liquidations that weren’t the results of market volatility or consumer error. In accordance with the platform, the difficulty stemmed from protocol habits linked to MIP‑X43. An onchain overview of all liquidations in the course of the affected interval recognized roughly $2.68 million in web losses throughout roughly 181 debtors. The restoration plan was drafted in response to those findings and the platform’s acknowledgment that customers had been harmed by means of no fault of their very own.
The proposal additionally addresses the standing of Moonwell on Moonriver, which was absolutely deprecated on January twenty ninth, 2026, following Chainlink’s determination to sundown oracle feeds on the community. This transformation required a gradual discount of collateral elements throughout all markets till they reached zero underneath MIP‑R38. Moonwell on Moonriver operated underneath the Moonwell Apollo DAO, ruled by MFAM, with a treasury separate from the Moonwell DAO on Base. With the Moonriver deployment now closed, the proposal seeks to consolidate Apollo into the first Moonwell DAO to streamline governance, align incentives and retire legacy infrastructure.
As a part of this consolidation, MFAM holders would convert their tokens into stkWELL at a 1:1.5 ratio, based mostly on a snapshot taken on the time of proposal submission. This conversion is meant to carry MFAM holders into the WELL ecosystem and remove governance fragmentation. The consolidation additionally supplies a framework to resolve points tied to the Moonriver deployment, together with the cbETH liquidation incident. Roughly $310,000 from the MFAM Apollo Treasury could be allotted for quick remediation, with all liquidation exercise reconstructed on the borrower degree to make sure constant compensation.
Treasury Payouts, Income‑Backed Repayments And MFAM‑to‑stkWELL Transition Proposed As Governance Votes Start
The restoration plan outlines a phased strategy. Step one includes distributing round $310,000 from the Apollo Treasury to affected debtors on a professional‑rata foundation as an preliminary remediation measure. The remaining losses could be repaid over time by means of future protocol income, together with web charges and OEV income. The proposal additionally formalizes the transition for MFAM holders, who would obtain stkWELL on the established ratio, with claims obtainable for as much as 12 months.
Two votes are required to advance the plan. MFAM holders should resolve whether or not to approve the restoration framework and transition into the Moonwell DAO. If accepted, the Moonwell DAO would then vote on treasury allocations, lengthy‑time period reimbursement commitments and execution authority. The proposal goals to conclude the Moonriver chapter whereas consolidating governance and focusing sources on lively deployments.
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About The Writer
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
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Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
Extra articles
