Lenders deposit funds into Moonwell and receive interest payments from borrowers (supply-side fees).

Moonwell is a non-custodial lending protocol built on multiple blockchains.

WELL tokenholders own and govern the protocol. They currently take a cut of the total interest + liquidation fees paid by borrowers (revenue).

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Lending

Moonwell

# Moonwell Expenses Methodology

## 1. Overview

The Moonwell expenses metric measures the total USD value of token incentives distributed by the Moonwell protocol to users. This represents the protocol's operational expenses in the form of token rewards paid to participants in the lending markets. The metric captures token distributions from reward distributor contracts on Base and Optimism chains, converting them to USD values and aggregating them daily.

## 2. Data sources

- **ERC20 token transfer events**: Parsed `Transfer` events from Base and Optimism chains, specifically tracking outgoing transfers from reward distributor contracts
- **Token metadata**: Token decimal information for proper unit conversion of raw transfer amounts
- **End-of-day price feeds**: Daily token prices in USD for converting token amounts to USD values
- **Contract addresses**: Hardcoded reward distributor contract addresses and reward token addresses for Base and Optimism chains

## 3. Step-by-step calculation

### Component A: Token transfer extraction
- **Purpose**: Identifies and extracts token incentive distributions from reward distributor contracts
- **Logic**: Filters ERC20 `Transfer` events where the `from_address` matches specific reward distributor contracts on Base and Optimism chains. For Base chain, the reward distributor is `0xe9005b078701e2a0948d2eac43010d35870ad9d2` distributing WELL tokens (`0xa88594d404727625a9437c3f886c7643872296ae`) and OP tokens (`0xff8adec2221f9f4d8dfbafa6b9a297d17603493d`). For Optimism chain, the reward distributor is `0xf9524bfa18c19c3e605fbfe8dfd05c6e967574aa` distributing WELL tokens (`0xa88594d404727625a9437c3f886c7643872296ae`). Each transfer captures the recipient address, token amount, transaction details, and blockchain metadata.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification, `token_address` for token type, `to_address` as recipient, `value` as raw transfer amount

### Component B: Daily aggregation and categorization  
- **Purpose**: Aggregates token transfers by day and applies business categorization
- **Logic**: Groups the filtered token transfers by day using timestamp truncation to daily boundaries. Each transfer is categorized with business metadata including chain identifier, business line as "Lending", market sector and business segment both as "lending". The raw transfer amounts are preserved as token incentive values for downstream processing.
- **Key fields**: `timestamp` truncated to day, `timestamp_grain` set to "day", `chain_id` for blockchain identification, `amount` as the token incentive value

### Component C: USD conversion and decimal correction
- **Purpose**: Converts raw token amounts to proper token units and USD values
- **Logic**: Applies decimal correction to convert raw blockchain values (typically in wei or smallest token units) to actual token amounts using token metadata. Then converts these token amounts to USD values using end-of-day price feeds matched by token address and date. This ensures all incentive values are expressed in a common USD denomination for consistent reporting.
- **Key fields**: `token_incentives` as the corrected and USD-converted amount

### Final aggregation
- **Combining components**: Token incentive data flows from transfer extraction through daily aggregation to USD conversion in a sequential pipeline
- **Currency conversion**: USD conversion uses end-of-day price feeds matched by token address and transaction date, ensuring consistent daily pricing
- **Time aggregation**: All transfers are aggregated to daily boundaries using timestamp truncation, with each day representing the total incentives distributed
- **Final calculation**: The final expenses value equals the sum of all USD-converted token incentives distributed by the protocol's reward distributor contracts on each day, with zero-filling applied for days with no distributions to maintain complete time series data

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

MoonwellWELL

Expenses

Expenses

Competitive landscape

Chain breakdown