Moonwell Removes VELO and wrsETH as Collateral Across Base and Optimism

Moonwell has activated its MIP-X75 proposal on both Base and Optimism networks, removing $VELO and $wrsETH from the list of eligible collateral assets. The change immediately increases liquidation risk for borrowers who currently hold positions backed by these tokens. Affected users must either repay outstanding debt or substitute with other approved collateral to maintain their borrowing positions. The protocol's move follows ongoing governance efforts to tighten risk parameters across its lending markets.