Each asset on Moonwell will have a breakdown of the rewards, as shown in the following diagram. For the purpose of this documentation, Moonriver (MOVR) asset was used as an example.
Supply APY is the interest rate paid to users supplying asset. Users earn a percentage in the asset supplied, which automatically accrues.
The amount is determined by the value in “Supply APY” – a rate that fluctuates depending on the rate of supplied assets vs borrowed assets (market utilization). In this example, a user supplying MOVR to Moonwell Apollo, may earn MOVR tokens.
A higher supply with low borrowing may have a lower supply APY, while a higher borrow with lower supply may have a higher supply APY in order to incentivize supplying.
Borrow APY is the rate attached to users borrowing an asset, and indicates the rates a user will need to pay for their loan. The rate is currently offset by rewards from the distribution APY (currently rewarded in MOVR and MFAM on Apollo, GLMR and WELL on Artemis). In some rare situations, the rate may also be favorable enough so that users might earn rewards for borrowing in addition to supplying
Moonwell currently offers MOVR and MFAM rewards on Apollo, and GLMR and WELL on Artemis. The rate of these rewards is broken down on the Moonwell page by hovering over the asset card. The combined rate is seen on the chart for the asset:
The maximum that can be borrowed on a particular asset.
The percentage of the borrower’s interest that goes towards the Moonwell protocol.
The maximum amount that can be liquidated at a single time.
The incentive for liquidators to perform liquidations and keep the protocol solvent.
The percentage of an account’s liquidated collateral that is added to protocol reserves. This is taken out of the liquidation fee and reduces the risk of insolvency from cascading liquidations.