0x10b83c88…4be5sent to0x8769b70a…5838·#25,296,487·0xf1c22203…886f2b
# MIP-X60: Anthias Labs Monthly Recommendations & Reserve Recommendations (6/2026)
## Summary
This proposal outlines targeted actions to address Moonwell's outstanding bad
debt on Base while continuing remediation efforts for users affected by the
cbETH incident, alongside Anthias Labs' monthly risk parameter recommendations.
Currently, the protocol has approximately $5.1M in bad debt across its core
markets, and $738K in reserves. We propose two key initiatives: (1) using
protocol reserves to repay $538K of bad debt from addresses with zero
collateral, and (2) withdrawing 1.45 cbBTC from the reserves and swapping it to
WETH in preparation for distribution to users affected by the cbETH incident.
This swap, along with the ~10 ETH already recovered from law enforcement, will
be distributed in a future round once the final WETH amount is confirmed after
the swap.
## Risk Parameters
| Parameters | Current Value | Recommended Value |
| ------------------------------------------ | ------------- | ----------------- |
| cbETH Reserve Factor (Optimism) | 10% | 99% |
| cbETH Collateral Factor (Optimism) | 81% | 1% |
| weETH Supply Cap (Optimism) | 1 wei | 90 weETH |
| wrsETH Collateral Factor (Base & Optimism) | 74% | 68% |
_Cap changes will be made via Cap Guardian_
### IR Parameters
| **cbETH IR Parameters (Optimism)** | Current Value | Recommended Value |
| ---------------------------------- | ------------- | ----------------- |
| Base | 0 | 0.01 |
| Kink | 0.45 | 0 |
| Multiplier | 0.065 | 0 |
| Jump Multiplier | 3 | 0 |
For more information refer to our forum post:
[link](https://forum.moonwell.fi/t/anthias-labs-risk-parameter-recommendations/1759/16).
## Bad Debt & Reserves
The table below summarizes the current status of bad debt and reserves in
Moonwell's core markets on Base.
| Market | Price | Bad Debt (tokens) | Bad Debt (USD) | Current Reserves (tokens) | Current Reserves (USD) |
| --------- | ---------- | ----------------- | ----------------- | ------------------------- | ---------------------- |
| cbETH | $2,376.95 | 673.4712991 | $1,481,636.86 | 1.0905 | $2,592.06 |
| cbXRP | $1.35 | 757382.1247 | $1,029,131.86 | 3147.9683 | $4,256.05 |
| VIRTUAL | $0.75 | 1257220.032 | $990,374.80 | 16652.5804 | $12,489.44 |
| WETH | $2,101.47 | 242.0337972 | $514,770.80 | 74.4075 | $156,364.76 |
| MORPHO | $2.29 | 119637.2844 | $271,043.06 | 14771.2359 | $33,870.44 |
| USDC | $1.00 | 231878.8672 | $231,807.00 | 69573.3004 | $69,573.30 |
| wstETH | $2,595.53 | 82.11552531 | $215,755.17 | 35.6428 | $92,511.89 |
| AERO | $0.44 | 472534.323 | $208,909.13 | 305721.6534 | $134,211.81 |
| EURC | $1.16 | 168241.3441 | $195,935.66 | 25767.0938 | $29,915.60 |
| cbBTC | $76,612.75 | 0.3129057585 | $24,264.67 | 1.7786 | $136,263.44 |
| DAI | $1.00 | 1529.945898 | $1,529.35 | 1955.369 | $1,955.37 |
| USDS | $1.00 | 1056.937176 | $1,056.50 | 164.875 | $164.88 |
| tBTC | $76,476.61 | 0.01211561 | $942.73 | 0.0878 | $6,714.65 |
| WELL | $0.00 | 23604.08201 | $107.79 | 2860027.174 | $11,440.11 |
| weETH | $2,301.54 | 0.00331817 | $7.73 | 7.0507 | $16,227.48 |
| rETH | $2,446.19 | 0.0009361799 | $2.31 | 4.1893 | $10,247.84 |
| LBTC | $76,919.32 | 0.0000155425 | $1.21 | 0.2117 | $16,283.82 |
| wrsETH | $2,253.25 | 0.0004682241 | $1.07 | 1.1744 | $2,646.22 |
| USDbC | $1.00 | 0.0335857356 | $0.03 | 3.271 | $3.27 |
| VVV | $19.81 | 0 | $- | 26.9944 | $534.62 |
| **TOTAL** | | | **$5,167,277.74** | | **$738,267.02** |
## Bad Debt Repayment
We recommend that the protocol use its reserves to repay the bad debt on behalf
of the following addresses. These addresses are currently supplying no
collateral, which means their debt positions can be safely repaid without risk
to the protocol. This action will help recapitalize the affected markets. The
total bad debt repayment for this proposal amounts to approximately $538K.
The 16,652.5804 VIRTUAL repayment from the original recommendation is omitted
from this proposal: the VIRTUAL market's available cash (~6.2K VIRTUAL) cannot
cover the reserve reduction, so it will be revisited once the market
recapitalizes.
| Address | Repayment Amount | Repayment Token | Repayment USD |
| ------------------------------------------ | ---------------- | --------------- | --------------- |
| 0x3b87f7d473550ef9e53e46baae856608f8b8a0c4 | 74.4075 | WETH | $156,365.13 |
| 0xa98e339f5a0f135792286d481b4e23d91a667d3f | 262817.3242 | AERO | $115,639.62 |
| 0x42ecd332d47c91cbc83b39bd7f53cebe5e9734bb | 35.6428 | wstETH | $92,511.89 |
| 0xedb0c9bbee5a799340480efc31c0e07cad54d646 | 43865.80597 | USDC | $43,865.81 |
| 0xa98e339f5a0f135792286d481b4e23d91a667d3f | 14771.2359 | MORPHO | $33,870.44 |
| 0x42ecd332d47c91cbc83b39bd7f53cebe5e9734bb | 25767.0938 | EURC | $29,915.60 |
| 0x8c40a7d8c37b30c8a4b228ca0885e65444a676a0 | 25707.49443 | USDC | $25,707.49 |
| 0x42ecd332d47c91cbc83b39bd7f53cebe5e9734bb | 42904.3292 | AERO | $18,835.00 |
| 0x6a8ee608d88db389796b9c02a1aaa36b89ac660c | 0.14764634 | cbBTC | $11,311.59 |
| 0x5877022fe1a776e5275ed535b50d83a69634089c | 0.12540986 | cbBTC | $9,607.99 |
| **TOTAL** | | | **$537,630.56** |
## cbETH Remediation
We also propose distributing the next round of WETH to users affected by the
cbETH incident.
To facilitate this, we recommend that the protocol withdraw 1.45 cbBTC and swap
it for WETH (1.45 cbBTC ≈ 53.33 WETH). In addition, the protocol has recovered
9.99984 ETH from law enforcement, which will also be distributed to affected
users. This brings the total distribution for this round to 63.33 WETH.
Current repayment progress:
- WETH distributed so far: 169.26714134
- Remaining to be repaid: 1,208.01108186
We are currently 12.29% of the way toward full repayment. This proposed round
will increase progress to approximately 16.9%.