Moonwell Interest Rate Overhaul Boosts Stablecoin Borrowing

Moonwell, a decentralized lending protocol on Ethereum, has seen a significant surge in USDC borrowing after an overhaul of its interest rate model curves. The changes, which went into effect on July 29, 2026, led to a 135% increase in USDC borrowing week-over-week and an 87% rise in USDT borrowing over the same period.

The protocol's community-approved governance proposal introduced borrowing rewards for users, who now earn WELL tokens when taking out loans. This move has attracted more liquidity to Moonwell's markets, making it easier for users to access stablecoins like USDC and USDT.

Moonwell currently supports lending across multiple assets on Ethereum, including USDC, USDT, ETH, and cbBTC. The protocol also offers cross-network lending through its USDC Anywhere feature, which enables users to access USDC liquidity regardless of the chain they're using.