Lending FAQ

Common questions about supplying assets and earning interest on Moonwell. For step-by-step guidance, see How to Supply Assets.

mTokens are ERC-20 tokens that represent your supplied position in Moonwell, and they automatically earn interest over time.

For example, when you supply USDC you receive mUSDC. Your position grows as interest accrues, and when you withdraw, your mTokens are burned and you receive your original asset plus earned interest. Because they're standard ERC-20 tokens, mTokens stay in your own wallet.

The available assets depend on the network and the markets listed there. You can see the full, current list on the Markets page once your wallet is connected to a given network.

No. There's no minimum, so you can supply any amount.

That said, every transaction has a gas fee. For very small deposits, that fee can eat into your net return, so it's worth weighing the amount against the cost.

There's no protocol fee to supply or withdraw. You only pay the standard network gas fee to process each transaction.

Yes. You can supply different assets at the same time, for example USDC for steadier yield and ETH for exposure to price changes.

Each asset has its own interest rate and collateral factor, and you manage each position independently on the relevant market page.

Interest accrues and compounds automatically. The interest earned each block is added to your position, and future interest is calculated on the larger amount. Over time, this compounding grows your yield without any action from you.

No. Rates are variable and adjust automatically with market utilization. The APY you see is a current estimate, not a locked rate.

If utilization reaches 100%, all supplied assets are borrowed and none are immediately available.

In that case, withdrawals may be temporarily limited until some borrowers repay and utilization drops. This is rare and usually short-lived. During high utilization, rates can rise sharply to encourage repayment and new supply.

Only if you want to borrow. Enabling collateral lets you use your supplied assets as security for loans of other assets.

If you only want to earn interest, you don't need to enable it. It's completely optional.

Supplied assets are only at risk of liquidation if you borrow against them and fail to keep enough collateral. Here's how it works:

As with any onchain protocol, smart contract risk also exists. Moonwell works to reduce it through audits, an asset listing framework, and Chainlink oracles, with the Safety Module as a backstop.

Core Markets let you supply and borrow directly in a shared pool of liquidity. Vaults let you deposit once and have your assets allocated across various isolated markets for you. If you want a hands-off option, vaults may suit you better.