Question 1

How does Moonwell work?

Accepted Answer

Moonwell is a decentralized lending and borrowing protocol that runs on Base and other EVM‑compatible chains, using overcollateralized money markets. Users deposit assets to earn variable interest or use them as collateral to borrow other tokens from the protocol. Smart‑contract‑managed pools automatically adjust rates and liquidation thresholds based on supply, demand, and risk parameters.

Question 2

Is Moonwell a secure platform?

Accepted Answer

Security is guaranteed by non‑custodial design, regular audits from firms such as Halborn and Code4rena, and risk‑management support from Gauntlet and Warden. The protocol also runs an Immunefi‑based bug‑bounty program and is governed by WELL token holders, who can propose and vote on parameter changes. Moonwell is positioned as a secure, community‑governed lending layer for Base‑native and other supported chains.

Question 3

How to use Moonwell?

Accepted Answer

First, users connect a compatible wallet and select the Base network to interact with Moonwell’s lending and borrowing interface. Next, they deposit supported assets like ETH, USDC, or WBTC to earn yield and optionally use them as collateral to borrow other tokens. Finally, users can monitor their health factor, repay loans, withdraw collateral, or compound returns by re‑staking earned yields.

Question 4

What services does Moonwell offer?

Accepted Answer

Moonwell offers an open lending and borrowing suite, including interest‑bearing vaults, overcollateralized loans, and risk‑managed markets for ETH, USDC, WBTC, and more. Users can earn yield on supplied assets, leverage positions, and participate in liquidity‑incentive programs or governance via the WELL token. The protocol also serves as a base‑layer lending infrastructure for DeFi projects and looping‑style strategies on Base and other chains.