Moonwell is a decentralised lending and borrowing protocol, enabling users to lend digital assets, earn variable interest, and borrow against collateral. Built on multiple Ethereum Virtual Machine (EVM)-compatible networks (Base, Optimism, Moonbeam, and Moonriver), Moonwell offers an open financial application that leverages decentralised finance (DeFi) technology. With a focus on simplicity, Moonwell aims to make onchain financial services accessible, featuring an intuitive interface that enables users to perform financial operations like lending, borrowing, and staking easily.

The protocol incorporates non-custodial asset management, meaning users retain control over their funds during lending or borrowing activities. Moonwell prioritises security through robust security measures, audited by firms like Halborn Security. Operations on Moonwell are transparent and governed through onchain governance, which allows the community to oversee changes and updates to the protocol.

Moonwell enables users to:

Lend and Borrow Assets: Users can deposit assets into single-sided liquidity pools, where they earn interest. Borrowing is supported by over-collateralised loans, determined by the supplied collateral and Moonwell governance parameters.

Governance Participation: WELL token holders can participate in governance decisions, such as voting on proposals that impact the protocol's direction and submitting Moonwell Improvement Proposals.

Staking for Security: WELL tokens can be staked in the Moonwell Safety Module, enhancing protocol stability and acting as a safeguard against potential shortfall events. Stakers are rewarded for their contributions.

Cross-Chain Functionality: Upgraded to the xERC20 standard, WELL supports multichain functionality, allowing users to transfer tokens between Base, Optimism, and Moonbeam networks without the need for external bridges.

Moonwell Morpho Vaults: These vaults allow users to deposit assets into a single pool, which dynamically allocates funds across lending markets based on optimised strategies, offering simplified management and optimised returns.

Moonwell was initially developed by Lunar Labs, with several contributors involved in building and optimising the protocol:

• Luke Youngblood: A former Coinbase Sr. Staff Engineer who has contributed to Coinbase's staking and Tezos validator infrastructures.
• Eli Clendenin “Majin”: Focuses on community and communications.
• x0s0l: A full-stack developer and co-founder of Solarbeam.
• Akira: Responsible for frontend development.

Additional partners include Gauntlet for risk management, Halborn Security for security audits, and various other groups contributing to development, design, and governance facilitation. Moonwell’s governance structure is community-led through the Moonwell DAO and supported by advisors such as 0xMaki and Brandon Kase.