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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.
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:
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.
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.
The maximum that can be borrowed on a particular asset.
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.
The percentage of the borrower’s interest that goes to the Moonwell protocol reserves.
The maximum amount of an outstanding borrow that can be closed in a single liquidation event.
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.
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.
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 | | | | |
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 |
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 |
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 |
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 |
Last modified 2d ago