About Moonwell
- TVL: $12o.9M (Rank #44)
- TVL Ranking by Lending: #17
- Blockchain: Base, Moonbeam, and Moonriver
- Number of pools tracked: 16
- Average APY: 11.27%
Moonwell is an open and decentralized protocol for lending and borrowing built on Base, Moonbeam, and Moonriver. Moonwell’s app provides a streamlined user experience, allowing everyone to interact with their digital assets.
The protocol has a wide ecosystem that includes a lending/borrowing dyad and a native token, an opportunity to bridge assets, to use USDC wherever a user wants, and a staking option.
Moonwell: Key Features
Lending
Onchain financial tools like decentralized lending and borrowing can empower people, acting as stepping stones to new opportunities. However, they're all too often buried under complex and confusing systems.
We’re here to rewrite this narrative. In just a few clicks on Moonwell, you can effortlessly lend, borrow, and claim rewards, all while maintaining complete control over your digital assets.
Non-Custodial
Moonwell's non-custodial architecture complete authority over your digital assets while lending and borrowing.
Intuitive User Experience
Moonwell provides a user-friendly interface that simplifies the lending and borrowing experience. The app has been built from the ground up to be intuitive and easy to navigate, allowing both novice and experienced users to lend and borrow digital assets effortlessly.
Security is at the Moonwell’s core. Numerous robust security measures were taken to strengthen the protocol.
Transparency
All operations on Moonwell can be viewed on-chain, providing transparency that we often don’t have in traditional, centralized financial systems.
Onchain Governance
Onchain governance proposals are required for all changes and updates to the Moonwell protocol. This makes the protocol aligned with the community's interests while reducing single points of failure. As a result, Moonwell becomes more resistant to disruptions.
UCDS Anywhere
Thanks to Circle's Cross-Chain Transfer Protocol (CCTP), which Moonwell uses, users can easily lend and borrow USDC on Moonwell's Base deployment from various CCTP-supported networks.
How is that achieved? CCTP burns USDC on the source chain and mints an equivalent amount on the destination chain. This aims to enhance liquidity and improve the overall user experience.
Source: Moonwell Docs
Lend
Users can supply their USDC to Moonwell on Base from any CCTP-supported network.
Borrow
Users can borrow USDC from Moonwell on Base, and then transfer the USDC to any of the CCTP-supported networks. This makes it possible for users to use their USDC on the network they prefer the most.
To borrow USDC from Moonwell, users need to provide assets as collateral. Moonwell operates on an over-collateralized loan model, meaning that the amount you can borrow is limited to a percentage of the value of the collateral you provide. The borrowing limit is defined by the parameters set by Moonwell Governance.
WELL Token
Moonwell has two tokens: WELL and MFAM. These tokens are responsible for different functions within the Moonwell ecosystem, including governance and staking.
WELL token on Base in combination with Moonwell’s new multichain governance infrastructure, empowers the Moonwell community to vote and stake directly on Base.
WELL token holders can upgrade their existing tokens on Base to native WELL using Moonwell's tool — WELL migration wizard.
Moonwell is a convenient swap feature in-app transfer tool, helping users to instantly move WELL between Base and Moonbeam.
$WELL staking runs on Base, allowing token holders to earn rewards while contributing to the protocol's stability.
Key Token Functions
1. Governance
The WELL and MFAM tokens allow holders to participate in the governance of the Moonwell protocol. Token holders can submit and vote in on-chain "Moonwell Improvement Proposals" and Snapshot Voting within Moonwell Governance.
- WELL: Governs the Base and Moonbeam deployments of Moonwell.
- MFAM: Governs the Moonriver deployment of Moonwell.
2. Staking
Token holders can stake WELL or MFAM tokens in the Moonwell Safety Module. This module rewards stakers for helping to support protocol security.
How Safe Is Moonwell?
Moonwell smart contracts always go through a comprehensive audit by experienced auditors to significantly reduce the likelihood of security vulnerabilities in the protocol. There have been no documented protocol hacks since the protocol’s launch.
To achieve the highest standards of security, Moonwell has implemented a suite of security measures such as:
- security audits by the best auditors in the field;
- Chainlink Price Oracles to ensure the accuracy and reliability of price feeds;
- collaboration with Gauntlet and Warden Finance, leading providers of financial modeling tools and economic simulations.
- Gauntlet's risk management dashboard and Warden Finance's risk analytics platform offer valuable insights for informed decision-making and effective risk management;
- ImmuneFi Bug Bounty Program to motivate security researchers to uncover and report vulnerabilities within the Moonwell ecosystem;
- Safety Module is an additional layer of protection against unforeseen events, such as smart contract exploits, liquidation failures, or oracle malfunctions.
Moonwell on Notum
Explore Moonwell lending strategies on the Base network right from the Notum app. After depositing your assets, you get USDC and you can trade at any time. All gained rewards are regularly distributed and accrue to your position automatically.
Source: Notum App
Final Thoughts
The Moonwell Ecosystem experienced a remarkable transformation by deploying on both Base and Moonbeam. Moonwell has evolved into a global community of suppliers, borrowers, governance delegates, developers, risk managers, and localization experts.
A very special feature called “USDC Anywhere” is a truly significant step towards a future where managing and growing a crypto portfolio is accessible to everyone.
Their intuitive interface provides transparency into DeFi markets by providing a user’s full transaction history and a detailed view of their portfolio.
All in all, Moonwell offers a simple to use, yet powerful financial tool for anyone interested in their capital growth.
Follow Moonwell on Socials
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