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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

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

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

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 or Harvest Moonbeam for GLMR rewards; MFAM distribution as outlined in the Transparency Report for Apollo, and WELL rewards for Artemis.
Distribution APY Example
Complex Example

Collateral Factor

The maximum that can be borrowed on a particular asset.
Collateral Factor Example

Reserve Factor

The percentage of the borrower’s interest that goes towards the Moonwell protocol.
Reserve Factor Example

Close Factor & Liquidation Incentive

Close Factor

The maximum amount that can be liquidated at a single time.

Liquidation Incentive

The incentive for liquidators to perform liquidations and keep the protocol solvent.
Close Factor & Liquidation Incentive Example

Protocol Seize Share

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.
Protocol Seize Share Example

Artemis Collateral Factor Chart

Asset
Collateral Factor
Reserve Factor
Close Factor
GLMR
60%
30%
50%
xcDOT
60%
30%
50%
WETH
60%
30%
50%
WBTC
60%
30%
50%
USDC
60%
25%
50%
FRAX
60%
25%
50%

Apollo Collateral Factor Chart

Asset
Collateral Factor
Reserve Factor
Close Factor
MOVR
60%
30%
50%
WBTC
0%
40%
50%
WETH
60%
30%
50%
USDC
60%
20%
50%
USDT
40%
25%
50%
FRAX
60%
25%
50%
xcKSM
60%
25%
50%