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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Moonwell

# Moonwell Fees Methodology

## 1. Overview

Moonwell fees represents the total fees generated by the Moonwell lending protocol across Base and Optimism networks. This metric aggregates three distinct fee components: lending revenues from interest accruals, liquidation fees from liquidation events, and Morpho vault performance fees. The calculation tracks both protocol revenue (fees retained by the protocol) and supply-side fees (fees distributed to liquidity providers), combining them into a comprehensive daily fees metric measured in USD.

## 2. Data sources

The calculation relies on several types of blockchain event data and supporting information:

- **Compound fork events**: Parsed `CToken_AccrueInterest_event` logs from Base and Optimism capturing interest accruals on lending markets
- **Liquidation events**: `CToken_LiquidateBorrow_event` logs from Base and Optimism recording liquidation transactions with seized collateral amounts
- **Reserve addition events**: `CToken_ReservesAdded_event` logs from Base tracking reserve additions to markets
- **Protocol parameter events**: Various parameter update events including `CToken_NewReserveFactor_event`, `CToken_NewProtocolSeizeShare_event`, and `Comptroller_NewLiquidationIncentive_event` from Base and Optimism
- **Morpho vault events**: `MetaMorphoVaultFactory_CreateMetaMorpho_event` and `MetaMorphoVault_SetFeeRecipient_event` from Base for identifying Moonwell-related vaults
- **Exchange rate state data**: Daily snapshots of Moonwell market exchange rates for converting mToken amounts to underlying token amounts
- **Token metadata**: Symbol and decimal information for proper token amount normalization
- **End-of-day price feeds**: Daily USD price data for converting token amounts to USD values

## 3. Step-by-step calculation

### Component A: Lending revenue from interest accruals

- **Purpose**: Calculates protocol and supply-side revenues from interest charged on loans
- **Logic**: Extracts `CToken_AccrueInterest_event` events from Moonwell markets on Base and Optimism, aggregates interest accrued amounts by day, and applies reserve factor splits. Events are filtered to only include known Moonwell market contracts. The `interest_accrued` amount represents total interest charged to borrowers, which is split between protocol (reserve factor portion) and supply-side (remainder). Reserve factors are maintained as daily forward-filled values from `CToken_NewReserveFactor_event` updates. Token amounts are normalized using token-specific decimal places from metadata.
- **Key fields**: `interest_accrued` (total interest charged), `reserve_factor` (protocol's share percentage), `account_address` (market contract), `token_address` (underlying token)

### Component B: Liquidation fees from liquidation events

- **Purpose**: Calculates fees generated from liquidation of undercollateralized positions
- **Logic**: Processes `CToken_LiquidateBorrow_event` events from Base and Optimism markets, calculating the USD value of seized collateral and applying liquidation parameter splits. The `amount_seized` represents collateral tokens taken from liquidated positions. This amount is converted to underlying token value using exchange rates from Moonwell state data, then split using liquidation incentive mantissa (total liquidator reward) and protocol seize mantissa (protocol's share). Supply-side receives the difference between total incentive and protocol share. Exchange rates convert mToken amounts to underlying token equivalents. Liquidation parameters are forward-filled daily values from respective update events.
- **Key fields**: `amount_seized` (collateral tokens seized), `liquidation_incentive_mantissa` (total liquidator reward rate), `protocol_seize_mantissa` (protocol's share rate), `exchange_rate` (mToken to underlying conversion)

### Component C: Morpho performance fees

- **Purpose**: Captures performance fees from Moonwell-related Morpho vaults
- **Logic**: Identifies reserve additions to Moonwell markets where the benefactor is a known Morpho vault fee recipient. Fee recipients are determined by cross-referencing `MetaMorphoVaultFactory_CreateMetaMorpho_event` events (filtering for vault names containing "moonwell") with `MetaMorphoVault_SetFeeRecipient_event` events to build a list of fee splitter addresses. When `CToken_ReservesAdded_event` events occur with these addresses as benefactors, the full addition amount is treated as protocol fees. Amounts are normalized using token decimal information before aggregation.
- **Key fields**: `amount` (reserve addition amount), `benefactor` (fee recipient address), `account_address` (market receiving reserves)

### Final aggregation

- **Combining components**: All three components are unioned together with standardized timestamp, chain, market sector, business segment, product, and token address fields. Each component contributes both `revenue` (protocol portion) and `fees_supply_side` (supply-side portion) values that are summed together as total `fees`
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds through the standard conversion macro, with appropriate decimal corrections applied based on token metadata
- **Time aggregation**: All events are aggregated to daily boundaries using timestamp truncation, with metrics summed across all transactions within each day-chain-token combination
- **Final calculation**: The final fees metric equals the sum of lending revenues, liquidation fees, and Morpho performance fees, with both protocol revenue and supply-side fees included. Chain availability filters ensure only data from supported chains and time periods are included in the final output

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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Fees

Fees

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