Moonwell Governance Seeks to Rebalance Liquidity Incentives on Ethereum and Base

Moonwell Governance has submitted a proposal to rebalance liquidity incentives on Ethereum and Base. This move is part of the protocol's monthly cadence of Moonwell Improvement Proposals, or MIPs, which adjust rewards for lenders and borrowers across its supported markets.

The proposals are designed to respond to real-time shifts in market conditions and utilization rates. By adjusting rewards, the protocol can lower supply-side Annual Percentage Rates (APRs) while raising borrow-side APRs for specific assets like ETH and USDC, or vice versa.

This process is automated through Moonwell's governance arm, which tracks proposals through its @MoonwellGov account. WELL token holders participate in voting, with the token serving as both the governance instrument and the incentive currency being redistributed.