Moonwell, the decentralized lending protocol, saw USDC borrowing on its Ethereum mainnet markets jump 135% week-over-week, with USDT borrowing climbing 87% over the same stretch. The catalyst: a governance-approved overhaul of the protocol’s interest rate model curves for both stablecoins.
The numbers are striking on their own, but they’re actually a step down from even larger spikes in earlier weeks, when USDC borrowing surged 148% and USDT borrowing rocketed 236%.
What changed under the hood
On July 29, 2026, Moonwell’s community passed a governance proposal that adjusted the interest rate model (IRM) curves for its USDC and USDT markets. The proposal also introduced borrowing rewards, meaning users now earn WELL tokens for taking out loans.
Moonwell currently supports supply, borrowing, and incentive distribution across several assets on Ethereum, including USDC, USDT, ETH, and cbBTC. WELL token incentives are active across both sides of those markets, rewarding lenders and borrowers alike.
