First MOVR Advantage: The Moonwell Liquidity Drop

Lunar Technology Foundation
Published in
3 min readMar 23, 2022


After months of learning from the market and adjusting to the rapidly changing pace of DeFi, the Lunar Technology Foundation, in its mission to foster the development of the Moonwell protocol, has decided to release more details about the Moonwell MFAM “Liquidity Drop.”

What is a Liquidity Drop?

Many new communities choose to “airdrop” tokens to wallets, in the hopes that those lucky recipients will become supporters and join such community. In some cases, this can lead to community growth and adoption, but in many other cases these airdrops are simply sold, and such recipients don’t become members of the community or even use the protocol.

The Moonwell community wanted to do something different. Rather than airdropping tokens to wallets of participants that might never use Moonwell, the MFAM (Moonriver family) token will be awarded to users that provide liquidity to the Moonwell protocol. This “Liquidity Drop” is favorable than an airdrop because it rewards people that actually use or will use the Moonwell protocol, and prevents sybil attacks (cases where people intentionally use multiple wallets in an attempt to receive multiple airdrops). The liquidity drop is not a one time event… those users that will continue to provide liquidity to the Moonwell protocol might continue to benefit and rewards may continue to “drip”.

What is First MOVR Advantage?

The Moonbeam Foundation, in its role of long-term network stewardship and to foster adoption of Moonbeam and Moonriver, has issued grants to many ecosystem projects, including Moonwell. The Moonbeam grant to the Moonwell protocol has enabled the Lunar Technology Foundation to reward the users of the Moonwell protocol.

How do I earn the Liquidity Drop?

You can participate in the Liquidity Drop in three different ways:

  • By supplying or borrowing assets from the Moonwell protocol
  • By staking MFAM tokens in the Safety Module, which is built to backstop the Moonwell protocol in the case of a shortfall event
  • By providing liquidity in the form of MFAM and MOVR tokens on the Solarbeam DEX

After the Liquidity Drop, you can claim your rewards at any time by simply clicking the “Rewards” button at the top of the Moonwell app or visiting the Farm page on Solarbeam. Rewards may be earned continuously and are calculated based on how much time you have spent doing any of the above activities. You can claim your rewards as often as you like.

How much will be provided in the Liquidity Drop?

While the reward amounts of the Liquidity Drop will vary over time, based on the amount of liquidity supplied and borrowed by the Moonwell community, the rewards will be highest in the first several weeks of the Liquidity Drop, and will be reduced over time. The goal of the Lunar Technology Foundation is to foster sustainable long-term growth and adoption of the Moonwell protocol [in order to enhance and broaden the community]. For more information, see the MFAM Token Transparency Report.

About Moonwell

Moonwell is an open lending and borrowing DeFi protocol on Moonbeam and Moonriver. Moonwell Apollo is Moonwell’s deployment on Moonriver.

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Moonwell Apollo is supported by the Lunar Technology Foundation, which is responsible for fostering the development of the Moonwell protocol and its ecosystem. Please see the Moonwell Apollo MFAM Token Transparency Report for more details.



Lunar Technology Foundation

The Lunar Technology Foundation is responsible for fostering the development of the @MoonwellDeFi protocol and its ecosystem