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 Revenue Methodology

## 1. Overview

Moonwell protocol revenue represents the total daily revenue earned by the Moonwell lending protocol across Base and Optimism networks. This metric combines three distinct revenue streams: protocol fees from liquidations, interest accrual reserves, and performance fees from Morpho vault integrations. The revenue captures the protocol's share of lending activity, liquidation penalties, and additional yield farming strategies.

## 2. Data sources

The calculation uses several types of raw blockchain data and external feeds:

- **Compound fork protocol events**: Parsed `CToken_LiquidateBorrow_event`, `CToken_AccrueInterest_event`, and `CToken_ReservesAdded_event` logs from Base and Optimism networks
- **Protocol configuration events**: `CToken_NewReserveFactor_event`, `CToken_NewProtocolSeizeShare_event`, and `Comptroller_NewLiquidationIncentive_event` logs that track protocol parameter changes
- **Morpho vault events**: `MetaMorphoVault_SetFeeRecipient_event` and `MetaMorphoVaultFactory_CreateMetaMorpho_event` logs from Base network for identifying Moonwell-related vault operations  
- **Moonwell state data**: Exchange rate snapshots and market configuration data tracking underlying token relationships
- **Token metadata**: Token symbols, decimal places, and contract addresses for proper amount calculations
- **End-of-day price feeds**: Daily closing prices for USD conversion of all revenue streams

## 3. Step-by-step calculation

### Component A: Liquidation fee revenue
- **Purpose**: Calculates protocol revenue from liquidation events where the protocol receives a portion of seized collateral
- **Logic**: Starts with parsed `CToken_LiquidateBorrow_event` logs from Base and Optimism networks, filtering for Moonwell market contracts. Joins liquidation events with daily snapshots of liquidation incentive rates, protocol seize percentages, market metadata, and exchange rates. Converts seized mToken amounts to underlying tokens using exchange rates, then applies the protocol seize percentage to determine the protocol's share. The calculation accounts for token decimal places and converts seized collateral amounts to the underlying token equivalent
- **Key fields**: Uses `amount_seized` from liquidation events, `protocol_seize_mantissa` rates, `exchange_rate` for mToken conversion, and `token_address` for proper decimal handling

### Component B: Interest accrual revenue  
- **Purpose**: Calculates protocol revenue from borrowing interest where the protocol receives a percentage based on reserve factors
- **Logic**: Takes parsed `CToken_AccrueInterest_event` logs from Base and Optimism networks for Moonwell markets. Joins interest accrual events with daily reserve factor snapshots and market metadata. Applies the reserve factor percentage to determine how much of the accrued interest goes to the protocol versus lenders. Converts amounts using token-specific decimal places to get proper underlying token amounts
- **Key fields**: Uses `interest_accruals` from accrual events, `reserve_factor` percentages, and token `decimals` for amount normalization

### Component C: Morpho performance fees
- **Purpose**: Captures additional revenue from Moonwell's integration with Morpho vaults where performance fees are added to protocol reserves  
- **Logic**: Takes parsed `CToken_ReservesAdded_event` logs from Base network and filters for events where the benefactor address matches known Moonwell fee splitter contracts. These fee splitters are identified from Morpho vault creation and configuration events where vault names contain "moonwell". Converts reserve addition amounts using token decimal places to get underlying token values
- **Key fields**: Uses `amount` from reserve addition events and `benefactor` addresses to identify Moonwell-related fee distributions

### Final aggregation
- **Combining components**: The three revenue components are combined using union operations, with each maintaining daily timestamp boundaries and consistent field structures for chain, market sector, business segment, and token addresses
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day token price feeds, with the conversion applied after decimal normalization but before final aggregation  
- **Time aggregation**: Daily revenue totals are calculated by truncating event timestamps to day boundaries, with all revenue events for each day summed together
- **Final calculation**: The total daily revenue equals the sum of liquidation fees plus interest accrual revenue plus Morpho performance fees, all converted to USD. Missing days are filled with zero values to maintain complete daily time series coverage across the protocol's operational period

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

MoonwellWELL

Revenue

Revenue

Competitive landscape

Chain breakdown