Moonwell Artemis — A lending & borrowing protocol on Moonbeam
Primer — Moonwell Artemis is a decentralized lending & borrowing protocol built on the Moonriver blockchain. It has launched with $150 MM in TVL, increasing Moonbeam network’s TVL by over 250%. With this, Moonbeam has earned a place in the top 30 chains in terms of TVL. In addition, it has managed to spotlight both Moonbeam and Polkadot.
Moonbeam & Harvest Moon Campaign
Moonbeam is an EVM (Ethereum Virtual Machine) compatible parachain on Polkadot launched in January 2022. It prioritizes secure cross-chain interoperability through decentralized solutions, thus allowing developers to build native multi-chain DApps and port their existing smart contracts across chains with ease. To understand EVM, give this article a read.
Polkadot’s ecosystem is composed of a relay chain (the main chain for the system) that connects and supports several ancillary, application-specific blockchains referred to as parachains. Parachains run parallel to the relay chain and are dependent on it for consensus. The architecture enables parachains to inherit the shared security of the relay chain. In addition, the cross-chain communications network (XCM) allows the secure transfer of data and assets between the parachains and smart contracts.
Moonbeam has entered the next phase of its launch, called Harvest Moon. Harvest Moon is a campaign powered by Moonbeam’s unique cross-chain connected smart contracts. The goal is to bring interoperability through cross-chain connected applications to Moonbeam and expand on the different possibilities that DeFi offers. Moonbeam Foundation has allocated up to 1.5% of the $GLMR genesis supply towards Harvest Moon’s liquidity program.
Prior to its deployment on Moonbeam, Moonwell Apollo was deployed on Moonriver. Moonriver is Moonbeam’s canary chain on Kusama. It allowed live testing of the code and the platform. Apollo continues to have the most TVL on Moonriver. The team that made this possible is Lunar Technology Foundation, led by former Coinbase engineer Luke Youngblood.
Moonwell secured a $10 Million strategic fund for the development of the platform from some notable investors that included Hypersphere Ventures, Arrington Capital, Polkadot ecosystem funds, and Coinbase Ventures. It also managed to raise $13 Million through the Public Sale of 500 Million $WELL tokens.
With rampant hacks and exploits marring DeFi, Moonwell’s goal is to offer a user-friendly UI with fast transaction speeds while being robust and secure. Halborn Security has performed multiple audits on it so far. It also provides security advisory services and monitoring of smart contracts and web properties on a retainer basis. The team has also partnered with ImmuneFi for a bounty program for discovering any potential security vulnerabilities.
Moonwell is a scalable, EVM-compatible, non-custodial lending and borrowing protocol.
Users can deposit assets and provide liquidity to earn rewards through the interest paid by the borrowers. It currently rewards both Lenders & Borrowers with $GLMR and $WELL for using the protocol as a part of the Moonbeam’s Harvest Moon Campaign. The platform supports $GLMR, $xcDOT, $wETH.mad, $wBTC.mad, $USDC.mad and $FRAX. Mad assets are assets bridged to Moonbeam through the Nomad bridge.
Users can also stake the $WELL tokens or leverage their positions through different trading strategies.
Users can also provide liquidity in the $WELL/ $GLMR pool and stake the LPs on StellaSwap to earn $STELLA and $WELL. As of writing this article, $WELL is listed on CEXes, including Kucoin, Huobi, and Gate.
$WELL Token & Staking Safety Module
$WELL is the native governance token of Moonwell Artemis. Users can stake $WELL for stkWELL tokens at 1:1 in the Safety Module. The Safety Module is a smart contract based system that incentivizes users to stake $WELL tokens for increased rewards. It also serves as a mitigation tool in the case of a Shortfall Event (Smart contract risk, Liquidation risk, Oracle failure risk).
The staked $WELL tokens have a cooldown period of at least 10 days to unstake. After the cooldown period of 10 days, users have a 2-day window to unstake the tokens. Safety Module will use up to 30% of the staked assets to cover the deficit in case of any shortfall event.
Users can transfer assets between Ethereum and Moonbeam networks through the Nomad cross-chain bridge. Nomad’s goal is to reduce the gas fee by 90% from other bridges while providing the highest level of security.
Moonwell uses Chainlink for price feeds. Chainlink is a decentralized oracle network. It helps to ensure the collateral value of all assets on Moonwell is backed by accurate market price data.
Interoperability is essential for blockchain technology to thrive. Currently, the industry is composed of siloed blockchains confining users to the independent network. Moonwell intends to connect the cross-chain applications while offering high security, a better user experience, and great community engagement.
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