New Polkadot Lending Protocol Moonwell Raises $10 Million in First Funding Round

On Thursday, Lunar Labs announced a $10 million funding round for the development of Moonwell Artemis.

Bishal Kumar Chanda2 min read
New Polkadot Lending Protocol Moonwell Raises $10 Million in First Funding Round

With Polkadot revealing its hub-and-spoke crypto vision, investors are pouring money into its new DeFi (decentralized finance) product, Moonwell Artemis. Similar to existing lending products like Aave, MakerDAO, and Compound, Moonwell will allow users to lend crypto and take out overcollateralized loans. With Aave, MakerDAO, and Compound, this formula has proven to be pretty successful in DeFi, attracting $12 billion, $15.8 billion, and $6.9 billion in crypto deposits.

The Moonwell Artemis is a collateralized lending protocol for the Moonbeam parachain that is compatible with Polkadot’s EVM (Ethereum Virtual Machine). On Thursday, Lunar Labs announced a $10 million funding round for the development of Moonwell Artemis. Co-led by Hypersphere Ventures and Arrington Capital, it was one of the first to receive funding from Katie Haun’s new venture fund. Other big names involved were Robot Ventures, Lemniscap, and Signum Capital.

Polkadot is a layer 0 network that enables secure communications between layer 1 parachains like Moonbeam. Consequently, it allows Moonbeam users to transfer crypto-assets across the Polkadot network without relying on cross-chain bridges that are prone to errors. Since Moonbeam is compatible with EVM, users of other EVM-compatible chains like Ethereum and Fantom would be able to interact with Moonwell Artemis using tools like Metamask.

While Moonwell Artemis is not set to launch until April, Lunar Labs is already piloting the lending protocol on Moonbeam’s Kusama-based sister chain, Moonriver. Moonwell Apollo, the pilot lending protocol launched on Moonriver, has already amassed $230 million of locked deposits. Ultimately, Lunar Labs plans on decentralizing the Moonwell product through a decentralized autonomous organization, Moonwell DAO. The governance token would be distributed among Lunar Labs investors, Moonwell users, and Moonwell community members.

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