§ 01Headline finding#

May left one question open: would Ethereum draw real liquidity, or only the launch dust it opened with? June settled it. The month-old deployment drew $2.9 million of genuine supply, the first meaningful liquidity any new Moonwell chain has added since the Base and Optimism era. It arrived against an ebbing tide, though. At the June 30 close, combined supply had eased 5.6 percent to $94.4 million as Base Core handed back May's first-of-the-year inflow, a $7.1 million constant-price outflow that carried it down to $67.9 million; the vaults slipped a sixth straight month to $19.5 million; and renewed volatility pushed liquidations past 1,000 events, up from May's 127. The four-chain era's first full month split two ways, then: the newest chain building while the oldest gave ground.

Base still anchors the protocol at 90 percent of supply, and it was Base that cooled: May's brief recovery unwound as a large supplier stepped out and USDC's borrow rate settled back from its May spike. Yet the month paid better even as it shrank. June's liquidation pickup fed the reserve through the 3 percent seize share, and with the MIP-X56 fee-split correction now live, oracle-update value recapture finally came good, carrying protocol capture to 69.9 percent of June's OEV, its first clean reading since the fix. A smaller book, in other words, taking a bigger cut.

§ 02Overview#

These levels are oracle-priced at each month-end, so the change reflects both flows and token price drift; the constant-price net flow is given in the headline.

The chain table sets out the split cleanly: Base gave back $7.1 million on a constant-price basis, the bulk of the month's move, while Ethereum added $2.9 million in its first full month and Optimism and Moonbeam each gave back a little, leaving the combined total 5.6 percent lighter. All USD figures are constant-price, read from the Moonwell oracle near the end-of-month block on each chain.

§ 03Markets and real yield#

USDC stayed the largest market by far, $15.1 million supplied against $13.6 million borrowed, but the rate that made it interesting cooled off: base supply APY settled back to 4.47 percent at the June close from May's 8.43 percent spike as borrowing demand normalized. Behind it, cbBTC and MORPHO held $11.1 million and $10.7 million, the two having traded the second spot all year, with AERO close behind at $9.8 million.

USDC suppliers still cleared the risk-free rate, 4.47 percent base plus a WELL incentive against the 3.72 percent T-bill, but the gap narrowed sharply from May as the borrow-driven yield spike unwound. June's real lesson was that May's 9 percent USDC print was a borrowing-demand spike, not a new plateau.

§ 04Wallets and risk#

Concentration kept climbing as the deposit base thinned. The top 10 wallets now hold 35.1 percent of supplied value and the top 50 hold 59.2 percent, up from 33.3 and 57.5 percent in May, while active suppliers fell to 14,711. The give-back was the mirror image of last month: it came from the same large holders whose deposits had driven May's recovery, which is why net dollar retention still held at 86.3 percent month over month and wallet retention at 84.5 percent. That is a healthy reading despite the supply loss, and it marks the move as a handful of big withdrawals rather than broad attrition.

Risk kept slowly healing: bad debt eased to roughly $4.9 million, still concentrated in the same three illiquid markets, cbETH, cbXRP, and VIRTUAL, that have held nearly all of it since the February incident. June's governance extended Anthias Labs' cap-guardian role to the new Ethereum deployment and ran the risk partner's monthly risk and reserve recommendations, its ongoing tuning of caps and reserve factors on the affected markets.

§ 05Liquidations#

The quiet ended. After May's 127-event floor, June brought over 1,000 liquidations seizing roughly $940,000 of collateral against $820,000 of debt repaid, a sharp pickup driven by a mid-month volatility burst. It was nowhere near February's $7.1 million wave, but it broke the two-month calm and, through the protocol's 3 percent seize share, was the main reason revenue rebounded. The seizures concentrated in the volatile small-caps: VVV alone was a third of the collateral taken, with cbXRP next and a long tail of small WETH liquidations driving the event count.

Sixty distinct liquidators competed for the flow, but it concentrated heavily: the top address alone took a third of the seized value across just 18 transactions, and the top five took roughly two-thirds. One address cleared $79,200 in a single liquidation.

§ 06Vaults#

The vaults fell for a sixth straight month, to $19.5 million from $20.8 million, though the bleed keeps slowing: a $1.3 million drop this time, against May's $5.2 million. Even so, they have now given up roughly 62 percent of their January TVL, with Flagship USDC and ETH still holding the bulk at $9.7 million and $6.5 million.

§ 07Financials#

Revenue rebounded. Gross fees rose to roughly $232,000 as June's liquidation pickup added a large bonus on top of steady borrower interest, and protocol revenue nearly doubled to about $44,300 at a 0.56 percent annualized take rate, up from May's 0.29 percent. The driver was the 3 percent protocol seize share of the month's liquidated collateral, not a structural improvement in lending monetization. That stayed thin: borrower interest held near $106,400 even as USDC's headline rate cooled, because more of the month carried elevated borrowing before the late-month unwind.

§ 08OEV#

With the MIP-X56 fee-split correction now live, the protocol's OEV capture rate is measurable again, and it is working. Across 157 wrapper events in June the active Chainlink wrappers recaptured $25,464 for the protocol against $10,945 of liquidator bonus: a 69.9 percent capture rate, right on the 70 percent target the proposal set. The protocol took roughly seven of every ten dollars of oracle-update value June's liquidations unlocked, the cleanest reading of the metric since the fee-split was corrected.

Where that value came from was concentrated. The VVV/USD wrapper alone produced $12,986 across 18 liquidations, more than half the month's protocol OEV, as one leveraged VVV borrower was wound down in seven tranches. The ETH, BTC, and cbXRP feeds followed.

OEV routing is now the default path rather than the exception. In June, 67 percent of Base and Optimism liquidation volume ($629,000 of $939,000, across 157 of 1,089 events) ran through the OEV wrappers, up from single digits under the pre-MIP-X56 design. Moonbeam's 269 June liquidations sit outside this figure: no wrappers are deployed there, so they cannot be routed.

The searcher side, by contrast, is thin. Thirty-four addresses executed OEV liquidations in June, but a single bot captured 64 percent of the recaptured value across 23 liquidations, including the large VVV wind-down. That concentration, an HHI near 4,100, is efficient today but worth watching: OEV auctions stay healthiest with several competing searchers, and June ran mostly on one.

§ 09Governance#

After May's Ethereum-launch burst, June was a quiet operations month: four on-chain proposals, no Snapshot votes, and all four executed. Anthias Labs, the protocol's risk steward, carried the month with its monthly recommendation and risk-parameter packages (MIP-X60 and MIP-X61); the recurring Automated Liquidity Incentive Proposal (MIP-X59) set the period's WELL incentives; and MIP-E01 tuned the WETH market on the new Ethereum deployment. Turnout stayed thin, averaging 186 active voters against the all-time high of 880, though every proposal cleared quorum with support between 96.7 and 100 percent.

§ 10Cross-deployment and token#

Moonwell held its rank as the third-largest Base lending venue by supplied value, behind Morpho Blue and Aave V3 and ahead of Fluid, Compound V3, and Euler. Morpho Blue held near $4.2 billion while Aave's Base book eased to $647 million from $718 million in May; Moonwell's Base book eased to $67.9 million on the month's outflow. It kept third comfortably, well clear of the roughly $30 million tier below.

WELL closed June at $0.003462, a $15.8 million market cap, down from $0.004165 and $18.9 million in May as the token gave back with the broader drawdown. The staking base stayed deep through the decline, a counterweight to the price.

§ 11Looking ahead#

July opens the second half. Watch whether Ethereum builds on its first real month or stalls near $3 million, whether Base Core finds a floor after giving back May's gain, whether the vault bleed finally ends, whether the June volatility and its liquidations were a one-off or the start of a noisier stretch, and whether Anthias, the protocol's risk partner, clears the stubborn cbETH bad debt. Its July package, passed in late June, points the way: MIP-X61 cuts wrsETH's collateral factor from 68 to 52 percent, tunes the USDC and MAMO rate curves, and directs more protocol reserves at the cbETH shortfall.