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).

github

twitter

discord

website

Lending

Moonwell

# Moonwell Token incentives Methodology

## 1. Overview

Token incentives represent the total USD value of reward tokens distributed by Moonwell protocol to users daily. This metric tracks the protocol's spending on user incentives across Base and Optimism chains by monitoring ERC20 token transfers from known reward distributor contracts to user addresses. The calculation identifies incentive distributions, converts token amounts to USD, and aggregates by day to measure the protocol's daily incentive costs.

## 2. Data sources

- **Blockchain events**: Parsed ERC20 `Transfer` events from Base and Optimism blockchains
- **Token transfer data**: Filtered token transfer records where the sender is a known Moonwell reward distributor contract
- **External data**: End-of-day price feeds for reward tokens and token metadata for decimal precision
- **Configuration data**: Hardcoded list of reward distributor contract addresses and their associated reward tokens for each chain

## 3. Step-by-step calculation

### Component A: Token incentive identification
- **Purpose**: Identifies token incentive distributions from Moonwell reward distributor contracts to users
- **Logic**: Filters ERC20 `Transfer` events where the `from_address` matches known Moonwell reward distributor contracts and extracts transfers to user addresses. Uses a hardcoded configuration specifying reward distributor addresses and their associated reward tokens for Base chain (distributor `0xe9005b078701e2a0948d2eac43010d35870ad9d2` distributing tokens `0xa88594d404727625a9437c3f886c7643872296ae` and `0xff8adec2221f9f4d8dfbafa6b9a297d17603493d`) and Optimism chain (distributor `0xf9524bfa18c19c3e605fbfe8dfd05c6e967574aa` distributing token `0xa88594d404727625a9437c3f886c7643872296ae`)
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for uniqueness, `token_address` for reward token identification, `to_address` for recipient, `value` for transfer amount, and hardcoded business classification as 'Lending'

### Component B: Daily aggregation
- **Purpose**: Aggregates token incentive transfers by day and prepares for USD conversion
- **Logic**: Truncates `block_timestamp` to daily boundaries using timestamp truncation and groups transfers by day, chain, token address, and business segments. Maintains individual transfer records with proper data typing for downstream processing
- **Key fields**: `timestamp` (truncated to day), `timestamp_grain` set to 'day', `chain_id`, business segment identifiers, `token_address`, and `amount` (transfer value cast to bignumeric for precision)

### Component C: USD conversion and decimal correction
- **Purpose**: Converts token amounts to USD values with proper decimal precision
- **Logic**: Applies the `convert_to_usd_and_correct_decimals` macro which joins with end-of-day price feeds to convert token amounts to USD and corrects for token decimal precision. Uses the native token amount and applies both decimal correction and USD conversion
- **Key fields**: Original `token_incentives` amount converted to USD-denominated value with proper decimal precision

### Final aggregation
- **Combining components**: Applies the `finalize_metric_token_incentives` macro which validates schema, ensures consistent data structure, and handles missing dates
- **Currency conversion**: USD conversion occurs using end-of-day price feeds matched to the transfer date and token address
- **Time aggregation**: Daily boundaries are established through timestamp truncation, with gap-filling using a 'fill_zeros' strategy for missing dates
- **Final calculation**: The final metric represents the sum of all USD-converted token incentive transfers from Moonwell reward distributors to users on each day, filtered by chain availability configuration to ensure only supported chains are included in the results

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

Value of native tokens distributed as incentives.

MoonwellWELL

Token incentives

Token incentives

Competitive landscape

Chain breakdown