Moonwell, the largest lending protocol on Base, has leveraged MetaMorpho to curate optimized lending vaults for USDC and WETH on Morpho.

Moonwell’s vaults allow depositors to earn better risk-adjusted yields through transparent, over-collateralized lending strategies plus additional rewards. The vaults are now easily accessible via Moonwell’s user-friendly app.

The vaults supply liquidity to markets deployed on Morpho Blue. Users can borrow from these markets and benefit from higher collateralization factors, lower costs, and deep liquidity.

By building on Morpho, Moonwell also has the option to create additional vaults catering to different risk profiles and isolated markets for long-tail assets that would be too risky for Moonwell’s existing cross-collateralized lending pool.

New opportunities made simple

Moonwell Lending Vaults

Choose between a USDC or WETH vault, deposit assets, and start earning immediately.

The vaults are curated by Block Analitica & B.Protocol, who uses novel, transparent risk models to provide a passive lending experience and optimize yields for depositors. Block Analitica has vast experience curating a series of vaults on Ethereum, including Spark’s DAI vault that manages $500M DAI liquidity from Maker.

The vaults can be accessed via Moonwell and Morpho.

Morpho Blue Markets

Markets listed by Moonwell’s vaults are accessible on the Morpho interface now and will also be available on Moonwell at the end of this month. These include:

WETH Markets: cbETH/WETH, wstETH/WETH, and rETH/WETH

USDC Markets: WETH/USDC, wstETH/USDC, and rETH/USDC

These markets allow users to borrow an asset against a specific collateral. For example, in the cbETH/WETH market, a user can deposit cbETH as collateral and borrow WETH against it.

How the Moonwell Morpho integration works

Moonwell utilizes two layers of the Morpho Stack — Morpho Blue and MetaMorpho — for their back-end infrastructure. The markets were deployed on Morpho Blue and the lending vaults were created using MetaMorpho.

Moonwell DAO is the owner of the vaults and appointed Block Analitica & B.Protocol as the risk curator, responsible for managing the vaults' allocations to various Morpho Blue markets. These underlying markets are immutable and ungoverned to ensure trustless lending and borrowing

Additionally, Moonwell has developed a seamless user experience for users to interact with the vaults and soon the markets via the Moonwell application.

About Moonwell

Moonwell is currently the largest lending and borrowing protocol on Base. The Moonwell app’s intuitive design ensures a streamlined user experience, enabling everyone to do more with their digital assets. Moonwell prioritizes security, with its contracts undergone comprehensive audits from Halborn Security, and an ImmuneFi bug bounty program rewarding reporting of vulnerabilities, with a maximum bounty of $250,000.

Learn more here.