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Protocol Information

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.

Protocol Math

Supply APY Equation
APY = normalizedEmissionPerSecond * rewardTokenPriceInEth * SECONDS_PER_YEAR / normalizedTotalTokenSupply

Supply APY

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.
Supply APY Example
You supply $1000 USDC.
USDC Supply APY is 10%.
In one year, you will earn roughly $100 in USDC as interest paid by borrowers.

Borrow APY

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
Borrow APY Example
You borrow $1000 USDC.
USDC Borrow APY is 10%.
In one year, you will have accrued roughly $100 in USDC interest.
Your borrowed amount will now be roughly $1,100.

Distribution APY

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:
These rewards are adjusted based on market conditions, asset value, and reflect tokens provided through a grant through the First MOVR Advantage for MOVR rewards and Moonbeam Ignite for GLMR rewards; MFAM rewards as outlined in the Transparency Reports for Apollo, and WELL rewards for Artemis.
Distribution APY Example
Assume MOVR price stays constant.
You borrow $1000 USDC.
USDC Distribution APY is 20%.
In one year, you can claim roughly $200 worth of MOVR and MFAM rewards.
Complex Example
Assume MOVR & USDC price stay constant.
You borrow $1000 USDC.
Borrow APY is 10%. In one year, you will have accrued roughly $100 in USDC interest.
Distribution APY is 40%. In one year, you can claim roughly $400 in MOVR and MFAM rewards.
Borrow Net APY = Distribution APY (40%) - Borrow APY (10%) = 30% APY.

Collateral Factor

The maximum that can be borrowed on a particular asset.
Collateral Factor Example
MOVR collateral factor is 60%.
You provide $1000 worth of MOVR as collateral.
You can borrow up to $600 in other assets.
Note: It is highly recommended that you stay below 80% of your borrow limit.
In the example above, it is highly recommended not to borrow more than $480 ($600 * 80%).
Going above 80% of your borrow limit puts you at a higher risk of liquidation.

Reserve Factor

The percentage of the borrower’s interest that goes to the Moonwell protocol reserves.
Reserve Factor Example
You borrow $1000 USDC.
USDC Borrow APY is 10%.
In one year, you pay back roughly ~$100 in interest.
Reserve Factor is 20%.
$20 of the $100 goes to the Moonwell protocol reserves.

Close Factor & Liquidation Incentive

Close Factor

The maximum amount of an outstanding borrow that can be closed in a single liquidation event.
Close Factor Example
Your Health Factor dips below 1, signaling that your account is now liquidatable.
You are currently borrowing 100 USDC.wh, which has a Close Factor of 50%.
A liquidator repays 50% of your outstanding borrow (50 USDC.wh) and seizes an equivalent amount from your collateral + liquidation incentive.

Liquidation Incentive

The additional collateral given to liquidators as an incentive to perform liquidations and keep the protocol solvent. A portion of this is given to the collateral mToken reserves as determined by the protocol seize share to reduce the risk of insolvency from cascading liquidations.
The Liquidation Incentive is equivalent to 10% of an underwater accounts' outstanding borrow, of which 30% returns to the protocol reserves.

Artemis Asset Risk Parameters

Asset
Collateral Factor
Reserve Factor
Close Factor
Borrow Cap
GLMR
62%
25%
50%
22,555,000 GLMR
xcDOT
63%
25%
50%
918,000 xcDOT
xcUSDT
53%
15%
50%
1,200,000 xcUSDT
FRAX
59.5%
15%
50%
5,250,000 FRAX
WETH.wh
50%
25%
50%
1100 ETH.wh
WBTC.wh
35%
25%
50%
110 WBTC.wh
USDC.wh
64%
15%
50%
2,600,000 USDC.wh
DEPRECATED
​
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​
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BUSD.wh
0%
99%
50%
325,000 BUSD
WETH.mad
0%
100%
50%
Unlimited
WBTC.mad
0%
100%
50%
Unlimited
USDC.mad
0%
100%
50%
Unlimited

Artemis Interest Rate Curve Parameters

Asset
Base
Kink
Multiplier
Jump Multiplier
GLMR
0.02
0.6
0.15
3
xcDOT
0.02
0.6
0.15
3
WETH.wh
0.02
0.6
0.15
3
WBTC.wh
0.02
0.6
0.15
3
USDC.wh
0
0.8
0.05
2.5
FRAX
0
0.8
0.05
2.5
xcUSDT
0
0.8
0.05
2.5

Apollo Asset Risk Parameters

Asset
Collateral Factor
Reserve Factor
Close Factor
Borrow Cap
MOVR
60%
25%
50%
120,000 MOVR
xcKSM
60%
25%
50%
19,000 xcKSM
FRAX
58%
15%
50%
1,000,000 FRAX
WETH.multi
64%
25%
50%
700 WETH.multi
WBTC.multi
0%
25%
50%
4 BTC.multi
USDC.multi
68%
15%
50%
9,727,000 USDC.multi
USDT.multi
46%
15%
50%
600,000 USDT.multi

Apollo Interest Rate Curve Parameters

Asset
Base
Kink
Multiplier
Jump Multiplier
MOVR
0.02
0.6
0.15
3
xcKSM
0.02
0.6
0.15
3
WETH.multi
0.02
0.6
0.15
3
WBTC.multi
0.02
0.6
0.15
3
USDC.multi
0
0.8
0.05
2.5
USDT.multi
0
0.8
0.05
2.5
FRAX
0
0.8
0.05
2.5
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