Strategic Aims
Moonwell is a decentralized finance (DeFi) protocol for lending and borrowing. The project’s stated goal is to offer a secure, user-friendly, and fast platform for these activities across multiple blockchain networks. Initially launching on the Polkadot ecosystem’s Moonbeam and Moonriver networks, it has since expanded to other chains, including Base. The core aim is to provide a comprehensive and accessible money market protocol for the broader DeFi ecosystem.
Project History
Inception Date: The token sale for Moonwell (WELL) occurred around March and April of 2022, with liquidity incentives and the protocol’s main functionalities beginning to roll out in June 2022.
Operational Duration: As of mid-2025, the project has been operational for approximately three years.
Progress Analysis: With a three-year operational history, Moonwell has had sufficient time to demonstrate progress toward its goals. The expansion from its initial deployment on Moonriver to other significant chains like Moonbeam and Base indicates a successful execution of its multi-chain strategy. The protocol has established a functional lending and borrowing market, attracted a user base, and implemented a governance structure, suggesting tangible progress in line with its stated objectives.
Tokenomics and Backers
Supply & Allocation:
- Total Supply: The total supply of WELL tokens is capped at 5,000,000,000.
- Circulating Supply: The circulating supply is dynamic and increases according to the vesting schedule. As of the latest data, a significant portion of the total supply is in circulation.
- Initial Allocation: The initial distribution of WELL tokens was allocated to various stakeholders, including the community, team and advisors (subject to vesting), ecosystem development, and both private and public sales.
Inflation & Emissions:
- Emission Schedule: The emission of new WELL tokens into the market is primarily driven by liquidity mining rewards for users who supply and borrow assets on the protocol, as well as staking rewards. These emissions are designed to incentivize participation and grow the ecosystem.
- Vesting: Initial vesting periods for the team and private investors were set with cliffs and subsequent linear unlocking schedules. A significant portion of these vesting schedules have been ongoing and are expected to be completed in the years following the launch. The primary sources of future supply entering the market will be ongoing network rewards and treasury spending as dictated by governance.
Known Backers:
Moonwell has received backing from several notable venture capital firms and prominent investors in the cryptocurrency space, including:
- Coinbase Ventures
- Arrington Capital
- Istari Ventures
- 3X Capital
- Charterhouse Strategic Partners
Value Accrual Analysis
Direct Token Utility:
The primary utility of the WELL token is for governance and staking. Token holders can participate in the decision-making process of the protocol by voting on proposals related to risk parameters, the addition of new assets, and protocol upgrades. Additionally, WELL tokens can be staked in the protocol’s Safety Module, which acts as a backstop in case of a shortfall event, and in return, stakers receive a share of protocol revenue and other incentives.
Revenue to Holder Pathway:
Moonwell employs a direct fee distribution model, often referred to as “real yield,” to deliver value to its token holders. The protocol generates revenue from the interest paid by borrowers. A portion of this revenue is distributed to WELL token holders who stake their tokens in the Safety Module. The rewards are typically paid out in the native assets of the respective chains (e.g., ETH, USDC).
Furthermore, a governance proposal (MIP-X21) was passed to enable the protocol to use a portion of its reserves to programmatically buy back WELL tokens from the open market. These repurchased tokens are then used to enhance the rewards for stakers, creating a direct link between protocol revenue and value accrual for token holders.
Resources
| Resource | URL |
| Official Project Website | https://moonwell.fi/ |
| Governance Site/Sub-site | https://forum.moonwell.fi/ |
| Official Social Media (X/Twitter) | https://twitter.com/moonwelldefi |
| Primary Block Explorer Link (Base) | https://basescan.org/token/0xA88594D404727625A9437C3f886C7643872296AE |
| Leading Data/Analytics Page (CoinGecko) | https://www.coingecko.com/en/coins/moonwell |
| Leading Data/Analytics Page (DeFiLlama) | https://defillama.com/protocol/moonwell |
