Moonbeam Ignite, the liquidity incentive plan, is a fun activity that helps users experience the Moonbeam ecosystem easily and happily. Powered by Moonbeam cross-chain connectivity, the possibilities of DeFi are exploding here. DeFi may not be popular, but there are always opportunities to find out and learn about the Monbeam ecological project. We invite Moonbeam ambassadors to share their research results. Of course, please DYOR before interacting with any item.
What is Moonwell
Moonwell is an open decentralized DeFi lending protocol based on Moonbeam, Moonriver and Base. Moonwell launched Moonriver in February 2021 and earned more than $300 million in TVL within two months of launch. Moonwell will be officially launched on Moonbeam in June 2022 and is TVL’s largest DeFi project on Moonbeam. It will be deployed on Base in August 2023.
Moonwell received approximately US$10 million in strategic investment from Hypersphere Ventures, Arrington Capital, Polkadot Ecosystem Fund and Coinbase Ventures for platform development. In addition, it successfully raised $13 million through a public sale of 500 million $WELL Tokens.
WELL Token
$WELL is the native governance token of Moonwell Artemis. Users can exchange $WELL for stkWELL in the Safety Module at a ratio of 1:1. The security module is a smart contract-based system that incentivizes users to invest $WELL to receive more rewards. At the same time, it is also a mitigation tool when smart contract risks, liquidation risks, and oracle failure risks occur.
The $WELL Token held has a cooling-off period of at least 10 days, during which the holding can be released. After the 10-day cooling-off period, users have 2 days to unstake their tokens. If any loss event occurs, the security module will use up to 30% of the collateral assets to make up for the loss.
Team background
Moonwell is mainly operated, developed and maintained by Lunar Labs. The founders of Lunar Labs include former Coinbase senior engineer Luke Youngblood, community leader Majin, full-stack developer and Solarbeam Lianx0s0l, and front-end engineer Akira.
In addition, Moonwell is also supported by other different organizations, including Gauntlet Network, Halborn, Warden Finance, Vector DAO, etc. For information about all supporting organizations, you can viewMoonwell's official documentation page.
Main services
Moonwell mainly provides users with lending services including mainstream assets such as GLMR, xcDOT, ETH and BTC. In addition, users can also pledge their protocol’s native token, WELL, on the official website. As of this writing, staking APY is 23.4%. In addition to its basic business, Moonwell has become the premier lending protocol in the Dotsama ecosystem through the following functions and features, including:
- Asset Custody: With Moonwell’s non-custodial architecture, users can retain full control of their digital assets when borrowing or lending.
- Intuitive user experience: Moonwell provides a user-friendly interface and greatly simplifies the lending experience. Moonwell was designed from the ground up to be intuitive and easy to use, allowing both new and experienced users to effortlessly lend and borrow digital assets.
- Robust security: Security is the core of Moonwell's design philosophy, and it adopts powerful security measures to protect the security of the protocol. By prioritizing security, the Moonwell community is able to lend and borrow digital assets with confidence.
- Transparent design: All operations on Moonwell are visible on-chain, providing transparency often lacking in traditional centralized financial systems.
- On-chain governance: All changes and updates to the Moonwell protocol require on-chain governance proposals. This ensures that the protocol is aligned with community interests while eliminating single points of failure. Therefore, Moonwell is more resilient and more resistant to damage.
Grant application details
The GLMR obtained from this ecosystem grant will all be distributed to liquidity providers on Moonwell’s Moonbeam deployment to increase TVL and on-chain activities. The Moonwell community will work with other Grant recipients to promote these incentives. This united effort not only increases engagement but also fosters a sense of unity and common purpose within Moonwell’s ever-expanding ecosystem.
View the approved Moonwell proposal:https://github.com/moonbeam-foundation/grants/blob/31134caf72e8bc426b2c76383a1d20d2f6234f3b/revised/moonwell-proposal.md
Moonwell Grant Program Implementation Steps
Grant application quota: 2,000,000 GLMR (actual Grant received is 1,576,853.40)
Incentive period: August 2023-February 2024
Distribution rate: approximately 100,000 GLMR/week
Incentive market: xcUSDT, xcDOT, GLMR, FRAX, BTC.wh, ETH.wh, USDC.wh
The reward funds will be transferred to the Moonwell Artemis Comptroller contract, which will then be distributed as rewards to users supplying on Moonwell. Which markets these rewards will be distributed to, and how quickly they will be distributed, are ultimately decided by the Moonwell community through the management process. Governance proposals are submitted every four weeks, and these proposals can change the speed of rewards in the Moonwell market.
Moonwell contributors have created open source tools that enable the community to dynamically adjust grant issuance based on TVL in the various markets supported by the Moonwell protocol. This allows the Moonwell protocol to dynamically adapt to changing liquidity and TVL, and ensures that as liquidity increases over time, liquidity incentives adjust accordingly to keep lending rates attractive to liquidity providers. attraction.