Definitive + Moonwell: Advanced Yield Through Lending
Advanced yield strategies on Moonwell’s lending markets
tl;dr
Definitive is thrilled to announce our strategic partnership with Moonwell, offering advanced strategies to the Moonwell community. These strategies leverage Definitive’s superior execution, detailed reporting, and robust risk management capabilities and can be accessed at moonwell.definitive.fi.
Context
Moonwell is the leading lending protocol in the Base ecosystem, supporting a diverse range of markets with participation from over 6,000 unique wallets. Definitive’s integration with Moonwell introduces multiple strategies built on top of Moonwell, offering the Moonwell community and Definitive’s institutional users new opportunities for yield generation with automated position management.
Benefits of this Partnership
- Enhanced Liquidity and Market Depth: Definitive’s integration will bring an influx of institutional users to Moonwell, deepening liquidity on the protocol for more robust and resilient markets.
- Access to Advanced Strategies: The Moonwell community can access Definitive’s institutional-grade strategies via our dedicated Moonwell strategy page. This access democratizes sophisticated investment strategies, empowering the Moonwell community with tools to optimize their yields and expand their investment capabilities.
- Market Expansion: Definitive’s institutional users benefit from access to the Moonwell’s market liquidity, diversifying their DeFi portfolios and onboarding onto the Base ecosystem.
What’s Launching?
Moonwell Hyperstaking Strategy
- Strategy Overview: Arbitrage the delta between the Liquid Staking Token (LST) APR and the Moonwell ETH borrow rate to 3x–5x the LST yield. Find an in-depth overview of Hyperstaking here.
- Assets Supported: cbETH, ETH, with more LSTs coming soon
- Source of yield: Rate spread arbitrage (real yield)
- Estimated Yield: ~15% — 22%
Moonwell Lending Strategy
- Strategy Overview: Supply assets to Moonwell and utilize Definitive’s automation to earn and compound rewards efficiently.
- Assets Supported: ETH, cbETH, rETH, wstETH, DAI, and USDC
- Source of yield: From borrow demand with additional WELL and USDC incentives sprinkled in (real yield + emissions)
- Estimated Yield: ~5% — 9%
Unique Strengths of Definitive’s Approach
All strategies provided through this integration are reinforced with Definitive’s automation and risk-management tools. All Moonwell community members will benefit from real-time monitors such as:
Leverage Loan-To-Value (LTV): Ensures leverage stays within a target range and automatically rebalances the position when that range is breached, preventing any liquidation from occurring while maximizing yield for the clients risk configuration.
Relative Liquidity: A risk-control feature limiting the percentage of liquidity provided to a protocol pool. Ensures a client never becomes a large percentage of the pool, dynamically scaling position size as Moonwell’s usage evolves.
In Conclusion
Definitive’s partnership with Moonwell is a significant stride forward for DeFi on Base, enhancing Moonwell’s market position while simultaneously broadening the horizon for Definitive’s institutional users.
About Definitive
Definitive is an execution platform and API for DeFi, offering non-custodial smart contracts and automation services across many DeFi protocols. Definitive’s smart contracts and proprietary off-chain engines work in tandem to streamline DeFi execution for end users, from complex yield strategies to high frequency trading algorithms.
Definitive Platform | Telegram | Twitter | Documentation
About Moonwell
Moonwell is an open and decentralized lending and borrowing protocol built on Base, Moonbeam, and Moonriver. The app’s intuitive design ensures a seamless user experience, enabling users to easily do more with their digital assets.
Moonwell App | Telegram | Discord | Twitter | Mirror | Documentation
