What is Moonwell (WELL) and How Does it Work? | KuCoin Crypto Gem Observer

2022/06/23 06:20:48

The decentralized finance (DeFi) sector has played a significant role in disrupting the traditional financial system. Apart from edging out the legacy processes, DeFi also addresses the flaws associated with the legacy financial system.

For instance, DeFi platforms offer the unbanked population easy access to the financial system. Unlike the centralized finance sector, which has a complex onboarding process, DeFi users only need a smartphone and an internet connection to access services.

Apart from easy access, the DeFi sector eliminates the hefty fees traditional financial companies charge for their services. The industry achieves this feat by doing away with third parties. Additionally, it allows users to store funds in wallets instead of bank accounts.

However, most DeFi platforms face several challenges that hinder their mainstream adoption. Such obstacles include lack of security and trust, poor user experience, lack of education, and poor community engagement.

Moonwell launched as an open lending and borrowing platform. The platform supports cryptocurrencies like Polkadot (DOT), Moonbeam (GLMR), wrapped Bitcoin (wBTC), and Ethereum (ETH). Moonwell also supports two stablecoins, USD Coin (USDC) and Frax FRAX. Check out what is Moonwell (WELL) by watching the video: https://www.youtube.com/watch?v=qvNX5zXCDBk

What is Moonwell?

The Moonwell platform prioritizes security, especially in light of the multiple attacks and exploits that the DeFi space has seen over the years. To ensure high security on its platform, Moonwell teamed up with top security firms to audit its code and provide smart contract support.

On top of this, the platform integrates agent-based economic simulations to help it adapt to and minimize the risks of extreme economic times.

Unlike other DeFi platforms, which bombard new users with overwhelming and overly-technical information, Moonwell takes a different approach. The platform leverages an intuitive user interface to ensure even first-time DeFi users have an easy time.

Regarding education and information, Moonwell plans to become the source for all DeFi-related information. The project believes it is vital for DeFi users to understand some technical topics while using lending and borrowing platforms.

To this end, Moonwell created a forum where community members can access and add videos, tutorials, guides, and announcements.

As for community engagement, Moonwell allows its users to share interests, ideas, and passions openly. The project encourages users to share information, put forward creative ideas, hang out, and have fun through its Discord and Telegram channels.

How Does Moonwell Work?

Moonwell first launched on the Kusama-powered Moonriver as Moonwell Apollo. Moonwell Apollo enables seamless onboarding seeing as Kusama has lower barriers of entry. Moonbeam is the first parachain on Polkadot that is compatible with the Ethereum Virtual Machine (EVM). To this end, Moonbeam combines Polkadot’s interoperability and scalability with Ethereum’s user-friendliness and strong developer community.

Borrowers, who must maintain more collateral than they borrow are matched up with suppliers, in a completely decentralized and trustless way.

Who Created Moonwell?

Lunar Labs is the company behind Moonwell. Luke Youngblood is in charge of Engineering at the company. He works alongside x0s0I, Octavius, and Canvas in the engineering department. Youngblood previously served as Coinbase’s Senior Staff Engineer and AWS Principal Engineer. His work at Coinbase included building the exchange’s staking rewards infrastructure.

Lucas Kozinski is the Head of Growth at Lunar Labs. Before his current role, Lucas served as Tokensoft’s COO. He was also the program lead for the Tezos Betanet launch.

Suzu is in charge of marketing, communications, and the community at Lunar Labs. Formerly the Head of Operations and Community at Solarbeam, Suzu is a marketing and communications specialist.

Moonwell also has a rich team of advisors, including Elias Simos, Brandon Kase, Mason Borda, Alex Levine, Justin Lee, and 0xMaki.

Recent News About Moonwell

Earlier today, June 22, Moonwell announced that it had integrated Chainlink Price Feeds on the Moonbeam mainnet. This integration will offer the project reliable and accurate price data, which will help ensure the accuracy of calculations of key lending metrics.

Moonwell has already integrated the Chainlink Price Feeds into the Apollo deployment on Moonriver. The project will also incorporate the price feeds into the upcoming Artemis deployment on Moonbeam.

At the moment, Moonwell is using Chainlink Price Feeds for WETH/USD, WBTC/USD, USDC/USD, USDT/USD, FRAX/USD, DOT/USD, and GLMR/USD.

Closing Thoughts

By addressing the issues that plague most DeFi platforms, Moonwell is operating from a position of power. Moonwell’s integration of Chainlink Price Feeds also ensures users get accurate price data, which helps build trust in the platform.