What Are Moonwell Rewards?
On top of the interest you earn for supplying or pay for borrowing, Moonwell may distribute token rewards through incentive programs. These rewards are separate from interest and are meant to encourage activity in particular markets.
Reward tokens may include WELL or other incentive tokens, depending on the current programs.
How Rewards Work
Rewards accrue automatically as long as your assets stay supplied or borrowed. The key difference from interest: rewards don't compound on their own. While base interest grows your position automatically, rewards sit as a claimable balance until you collect them.
When you claim, the reward tokens are transferred to your wallet, where they're yours to hold, use, or re-supply.
Two Ways to Claim Rewards
Method 1: Directly from Market
Go to any market page in Moonwell.
Find the asset you supplied and earned rewards on.
Click Claim.
Confirm the transaction in your wallet.
Method 2: Portfolio
Go to your Portfolio.
Locate the Rewards section.
Click Claim All Rewards.
Confirm the transaction in your wallet.
Both methods let you claim available rewards across your supplied and borrowed assets.
Rewards vs. Interest
It helps to understand the difference:
Interest APY: Earned automatically and compounds through your mToken position. No action needed.
Rewards APY: Incentive tokens that accrue automatically but must be claimed manually. They don't auto-compound.
Together, base interest and rewards make up your total APY.
Making the Most of Rewards
Claim periodically and re-supply. Re-supplying claimed rewards puts them to work earning interest, which is the closest thing to compounding them.
Mind the gas. Claiming costs a network fee, so on smaller positions it can make sense to let rewards build up before claiming.
No rush, no risk. Unclaimed rewards stay safely in the protocol until you collect them, with no expiry and no penalty.
Key Points
Rewards accrue continuously but require manual claiming.
You can claim anytime, as often as you wish.
There are no penalties for claiming.
Unclaimed rewards remain in the protocol until you claim them.
Frequently Asked Questions
Do rewards expire if I don't claim them?
No. They remain claimable in the protocol until you collect them.
Why don't my rewards compound automatically?
Rewards are separate incentive tokens, not part of your supplied balance. To compound them, claim and re-supply.
Which assets earn rewards?
Rewards depend on the active incentive programs and can change. Check the Lend and Portfolio pages to see current rewards on your positions.
Are rewards the same as interest?
No. Interest comes from borrowers and compounds automatically. Rewards are incentive tokens that you claim manually.