The Moonbeam Foundation is proposing to allocate 2,062,500 GLMR to extend Moonwell’s liquidity incentives over the next nine months. This grant will allow Moonwell to distribute 187,500 GLMR every four weeks, ensuring continued incentive support from April 14, 2025 through January 19, 2026.
This proposal is based on Moonwell’s demonstrated success in the recent Gauntlet grant impact evaluation, which showed that Moonwell:
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Exceeded expectations, ranking as the top-performing grant recipient
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Significantly improved capital efficiency (+3,813%) and trading volume (+452%)
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Continues to serve as Moonbeam’s leading lending protocol, driving ecosystem liquidity
By extending incentives for another nine months, this grant will support Moonwell’s continued growth and activity on Moonbeam and sustain its role as a key pillar of the DEFI ecosystem of the protocol.
Why Moonwell?
In the recent Gauntlet impact evaluation, the results of past grant recipients and assessed their effectiveness in strengthening the Moonbeam DeFi ecosystem were reviewed. Based on these findings, Moonwell emerged as the strongest candidate for continued ecosystem support.
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Moonwell outperformed expectations in multiple areas, outpacing the overall Web3 DEFI market.
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While TVL decreased due to external factors (WBTC delisting and outflows to Base), the grant significantly improved capital efficiency and trading activity, making its remaining TVL much more productive.
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Unlike Stellaswap, which has received strong external funding from DOT incentives, Moonwell’s continued growth depends on sustained ecosystem incentives.
What About Other Grant Recipients?
While Stellaswap, Prime Protocol, and Beamswap were also part of the previous grant cycle, there are no current plans to extend incentives for these protocols.
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Stellaswap has successfully leveraged DOT ecosystem incentives, reducing the immediate need for additional liquidity incentives from Moonbeam.
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Prime Protocol and Beamswap struggled to gain long-term traction, with Prime seeing a significant decline in TVL and Beamswap’s perpetuals market failing to reach sustainable activity levels. Given these results, the focus is now on supporting areas where incentives have demonstrated a clear impact.
Grant Structure & Distribution
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Total Grant Amount: 2,062,500 GLMR
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Incentive Duration: April 14, 2025 – January 19, 2026
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Distribution Schedule: 187,500 GLMR every 4 weeks
The incentives will be distributed directly through Moonwell’s existing liquidity incentive program so there is no gap in rewards for lenders and borrowers.
Expected Impact
The aim of the grant is to:
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Sustain engagement in the lending market, maintaining healthy liquidity levels on Moonwell
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Continue supporting capital efficiency improvements, ensuring that liquidity is actively utilized
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Reinforce Moonwell’s role as the top lending protocol on Moonbeam, providing a stable foundation for DeFi activity
This proposal aligns with the data-driven insights from our grant evaluation process, ensuring that ecosystem incentives are directed toward protocols that have demonstrated clear results.
Timeline & Next Steps
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March 26, 2025 - On-chain vote goes live on the GeneralAdmin track
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April 14, 2025 - if passed, incentives go live on Moonwell
We invite the community to share feedback on this proposal.
Do you support this targeted incentive approach? Are there additional factors we should consider?
Let us know your thoughts! 