moonwell

Moonwell has deployed an improved version of its Oracle Extracted Value (OEV) mechanism, more than a year after becoming the first lending protocol to implement this technology. **Key developments:** - New OEV contracts are now operational on Base and OP Mainnet - The upgraded system is designed to significantly increase protocol revenue - OEV allows Moonwell to capture value that was previously lost during liquidation events - Additional revenue flows back to WELL token stakers monthly The mechanism enhances capital efficiency by redirecting value that would otherwise be extracted by third parties during oracle price updates and liquidations. This represents a technical advancement in how DeFi protocols can optimize their economic models. For technical details, see the explanation from Luke Youngblood.

Moonwell has launched its **Ecosystem USDC V2 Vault**, marking the first transition to the Morpho V2 standard on Base. **Key Updates:** - V2 vaults offer greater flexibility and enhanced capabilities compared to V1 - Deposits remain possible in V1 vaults, but liquidity is expected to migrate to V2 - All remaining Moonwell vaults will transition from V1 to V2 in coming weeks - The vault is now listed in the Morpho app and integrated with Jumper Exchange The upgrade builds on Morpho's existing infrastructure while providing users with improved functionality for their USDC deposits on Base.

Moonwell has deprecated its Flagship USDC Vault and associated Morpho Isolated Markets on OP Mainnet, redirecting resources toward more productive opportunities. **Key Changes:** - New deposits are no longer accepted - Existing deposits remain fully accessible for withdrawal - No additional changes planned for this vault **Action Required:** - Withdraw remaining funds via [Moonwell](http://moonwell.fi) or Morpho app - Review positions to confirm balances post-withdrawal **Unaffected Services:** - All Moonwell Core Markets on OP Mainnet remain fully operational This follows Moonwell's recent Moonriver deprecation, which was prompted by Chainlink's oracle feed sunset. The protocol reduced collateral factors to 0% across all Moonriver markets to prevent bad debt accumulation. For withdrawal assistance, visit [Moonwell Discord](https://discord.com/invite/moonwellfi).

Luke Youngblood, a contributor to the Moonwell protocol, has been featured in coverage by Bloomingbit. This follows previous media attention from Money, highlighting growing interest in Moonwell's work in the DeFi space. **Key Points:** - Moonwell contributor gaining media visibility - Featured across multiple financial media outlets - Reflects broader attention on the protocol's development The coverage comes as Moonwell continues its focus on building secure lending infrastructure in decentralized finance.

**Active crypto-backed loans grew 32.72% throughout 2025**, with the majority secured by Ethereum or Bitcoin collateral. This growth reflects increasing adoption of decentralized lending protocols as users leverage their crypto holdings for liquidity without selling their assets. - Primary collateral types: Ethereum and Bitcoin - Year-over-year growth: 32.72% - Trend indicates growing confidence in crypto-backed lending infrastructure

**Moonwell's Q4 Performance Shows Strong Growth** Moonwell reported Q4 revenue of **$901.21K**, marking a **71% increase** from Q3. The growth was primarily driven by activity on Base network. **Key Revenue Drivers:** - Fee growth on Base directly converted to protocol revenue - Increased borrowing demand led to higher interest rates - Higher rates generated more revenue for WELL token reserve auctions **Broader Q4 Metrics:** - Fees, revenue, and monthly active users all increased quarter-over-quarter - Capital utilization improved, with less idle assets - Growth sustained despite cooling market conditions The revenue cycle creates a positive feedback loop: more borrowing activity → higher rates → increased revenue → more WELL tokens acquired through monthly reserve auctions. Full Q4 report available on [Binance](https://www.binance.com/en/square/post/35170977363625) and Token Terminal.

**Moonwell's USDC Vault now supports Ethereum-backed loans** directly in the Coinbase app, expanding beyond Bitcoin lending. **Key developments:** - Curators allocated liquidity to the cbETH/USDC market on Morpho - Higher borrowing activity drives increased utilization and revenue - Vault serves as primary liquidity source for ETH-backed loans **Access points:** - [Explore USDC Vault](https://moonwell.fi/vaults/deposit/base/mwusdc) - [Real-time tracking](https://morpho.blockanalitica.com/base/vaults/vaults?search=moonwell) This expansion follows Moonwell's successful Bitcoin lending integration and represents continued growth in institutional DeFi adoption.

**Moonwell** rolled out several key updates this week: - **New governance dashboard** created by @joel_obafemi to track reserve auctions and vote-to-claim staking rewards - **Mamo account upgrades** for USDC and Bitcoin functionality - **Bitcoin borrowing discussion** on Edge Podcast featuring @LukeYoungblood and @GrafaCrypto about using Moonwell Vaults on Base - **$CYPR airdrop rewards** for Moonwell Card users from Cypher - **DuneCon25 presence** with contributor @danimimm attending in Buenos Aires The governance improvements aim to **increase community participation** through enhanced tracking of reserve auctions and staking rewards.

Moonwell has expanded its OEV (Oracle Extractable Value) implementation by integrating API3's OEV-enabled data feed for the GLMR Core Market on Moonbeam Network. This strategic update follows Moonwell's successful rollout of OEV across 15 markets on Base and Optimism Mainnet. Key updates: - First lending protocol to implement onchain OEV auctions - New integration with API3's data feed on Moonbeam - Enhanced revenue generation capabilities - Improved capital efficiency across markets The expansion demonstrates Moonwell's commitment to optimizing protocol revenue streams while maintaining robust market operations.

Moonwell has successfully expanded its Oracle Extracted Value (OEV) implementation across multiple markets: - First lending protocol to implement onchain OEV auctions - Expansion to 15 new markets on Base and Optimism Mainnet - Captures value traditionally lost to L2 sequencers during liquidations - Creates new revenue stream while improving capital efficiency The protocol's OEV mechanism represents a significant advancement in DeFi infrastructure, allowing for more efficient value capture and distribution within the ecosystem. [Read the full proposal](https://moonwell.fi/governance/proposal/moonbeam?id=161)