Moonwell, which operates on Base, Optimism, Moonbeam, and Moonriver, provides decentralized crypto lending and borrowing functions, and offers a range of ways to earn passively on your tokens, including through supplying assets to Moonwell Vaults and Moonwell Lend, and through staking the platform’s WELL token.
Amid the complexities of DeFi, any protocol that keeps its operations straightforward and user-friendly is at an advantage, and Moonwell is exactly this kind of platform. It offers a range of ways to earn passively on your tokens, but it never overwhelms its users, so let’s take at what Moonwell is, and how to use it.
What Is Moonwell?
Launched in 2022, Moonwell is a lending and borrowing platform that operates on Base, Optimism, Moonbeam, and Moonriver, and–in the context of DeFi–it’s very easy to navigate.
From a user perspective, Moonwell offers the capacity to borrow against your assets, and–as we’re going to concentrate on in this article–it enables lenders to provide liquidity and in the process earn yield on tokens, while maintaining full authority over their own assets.
Moonwell also has its own governance token, with the ticker WELL, that can be staked on the platform to earn rewards.
Moonwell Is Growing
Moonwell has been growing rapidly this year, and last month registered over $800,000 in fees, and $185,000 in revenue, across Base and Optimism, continuing the momentum built up over the summer, when highs were reached across these metrics.
The platform’s WELL token is currently at a market cap of $221 million, having hit an ATH of $325 million in October this year.
Before we proceed to look at using Moonwell, please note that DeFi comes with risks including smart contract exploits, frontend attacks, systemic risks across DeFi and crypto, and market volatility. This guide is neither financial advice nor an endorsement.
How to Use Moonwell Vaults
You can earn yield on your tokens through depositing into Moonwell Vaults. This system is built using lending protocol Morpho, and it basically lets you provide a single asset, which will then be automatically allocated according to strategies from risk management specialists Block Analitica and B.Protocol.
All of which means that you can provide funds and then let the platform do the management work, while your gains are auto-compounded.
There are currently three Vaults in operation, taking in ETH, USDC, and EURC, and the highest APY currently on offer is 14.3% on EURC, so let’s outline the steps required to earn on your tokens through putting EURC in a Moonwell Vault.
On the Moonwell app, go to the Vaults tab, and you need to click on Connect Wallet, from where you’ll get a list of supported wallets, and keep in mind that the Vaults are all operating on Base.
From there, click on the Vault you’re interested in, and in this case we’re focusing on EURC, and you’ll then be able to view total deposits and liquidity in the Vault, along with the deposit APY over on the right.
Then you simply enter the amount you want to deposit and click the Deposit button, and you’ll be prompted to confirm the details and sign the transaction in your wallet too. And that’s it, through this process you’re now earning yield on your deposited assets.
How to Use Moonwell Lend
Another way to earn, on a…
