Moonwell

Author(s): 0xMims, BlockAnalitica & B.Protocol Related Discussions: MIP-X08 Related Previous Proposal: MIP-X08: Renewal of Moonwell Vaults Incentives Program and Frontier cbBTC Vault Ownership Transfer

Summary

This proposal seeks to continue the successful Moonwell Morpho Vaults incentives program for an additional 90-day period. The Moonwell Flagship and Frontier vaults have consistently demonstrated strong performance and have become a cornerstone of Moonwell’s lending ecosystem on Base. To maintain momentum and ensure continued competitive rewards for vault depositors, this proposal requests a grant of 10M WELL tokens.

Following the recommendations from BlockAnalitica, the grant will be allocated across the following four vaults to optimize liquidity and address market demand:

• USDC: 50%
• ETH: 24%
• EURC: 13%
• cbBTC: 13%

The program is scheduled to commence on or around Tuesday, June 17th, to minimize any gap in rewards for liquidity providers. The 10M WELL tokens will be transferred from the Foundation’s multisig on Base to the Morpho URD to fund this 90-day incentive period.

Success of the Ongoing Program

The Moonwell Morpho Vaults have established themselves as the dominant market leader on Morpho’s Base deployment, consistently attracting significant Total Value Locked (TVL) and a large, active user base. The program’s achievements underscore the community’s strong appetite for optimized lending solutions and the effectiveness of the strategic incentives provided.

The continued growth and high levels of adoption across the USDC, ETH, EURC, and cbBTC vaults validate the success of this initiative. The dynamic allocation model and robust risk management have provided risk-adjusted returns for suppliers and competitive rates for borrowers, solidifying Moonwell’s leadership position within the Base ecosystem. Renewing these incentives is crucial to sustain this performance and continue fostering a vibrant and liquid lending market.

Current Vault TVL

• As of June 2025, the vaults maintain a significant amount of Morpho TVL:
  • Moonwell Flagship ETH Vault (Base): $27.3M
  • Moonwell Flagship EURC Vault (Base): $8.388M
  • Moonwell Flagship USDC Vault (Base): $22.7M
  • Moonwell Flagship cbBTC Vault (Base): $16.65M
  • Moonwell Flagship USDC Vault (OP Mainnet): $1.6M
  • Total Vault TVL: $76M

Proposed Incentive Renewal Terms

• Total WELL Tokens: 10M WELL
• Incentivized Vaults & Allocation:
  • Moonwell Flagship USDC Vault: 5,000,000 WELL (50%)
  • Moonwell Flagship ETH Vault: 2,400,000 WELL (24%)
  • Moonwell Flagship EURC Vault: 1,300,000 WELL (13%)
  • Moonwell Frontier cbBTC Vault: 1,300,000 WELL (13%)
• Duration: 90 days
• Start Date: Approximately June 17th
• Distribution: The incentives will be distributed over the 90-day period to maintain consistent rewards.

Implementation

Upon the successful passage of this proposal, the following action will be executed:

• Transfer 10M WELL from the F-BASE (Foundation on Base) multisig: 0x74Cbb1E8B68dDD13B28684ECA202a351afD45EAa to the Morpho URD contract: 0x9e3380f8B29E8f85cA19EFFA80Fb41149417D943.

The Foundation will be responsible for bridging the 10M WELL to Base and approving the Temporal Governor to spend the 10M WELL before the proposal’s passage to ensure a seamless transition.

Voting Options

• Yay: Approve the grant of 10M WELL token incentives for the Moonwell Flagship and Frontier Vaults for a 90-day period.
• Nay: Reject the renewal of the WELL token incentives.
• Abstain: Choose to participate in the vote without expressing support for or opposition to the proposal.

Conclusion

The renewal of the Moonwell Vaults incentives program is of utmost strategic importance to build upon our established market leadership and continue delivering value to our customers. By allocating 10M WELL over 90 days, we can ensure that our key vaults remain highly attractive to liquidity providers, thereby sustaining the growth and dynamism of the Moonwell ecosystem on Base. This proposal reaffirms our commitment to providing secure, simple, and accessible onchain finance for all.