mTokens are ERC-20 tokens that represent your supplied position in Moonwell. They automatically earn interest over time.

For example, when you supply USDC, you receive mUSDC. Your mUSDC balance grows continuously as interest accrues. When you withdraw, your mTokens are burned and you receive your original asset plus earned interest.

No.

There's no minimum amount to supply, so you can supply any amount.

That said, consider gas fees when deciding how much to supply. For very small amounts, transaction fees may reduce your net return.

Yes.

You can supply different assets at the same time. For example, you might supply USDC for stable yield and ETH for exposure to price appreciation.

Each asset you supply has its own interest rate and collateral factor. You can manage each supply independently on the Lend page.

Interest accrues per block and compounds automatically. The interest earned each block is added to your balance, and future interest is calculated on this larger amount. Over time, this compounding grows your yield.

You don't need to do anything for interest to compound. It happens automatically through mToken balance growth.

If utilization reaches 100%, all supplied assets are borrowed and none are available.

In this case, withdrawals may be temporarily limited until some borrowers repay and utilization decreases. This is rare and usually short-lived. During high utilization, interest rates rise sharply to encourage repayment and new lending.

Only if you want to borrow. Enabling collateral lets you use your supplied assets as security for loans of other assets.

If you only want to earn interest and have no plans to borrow, you don't need to enable collateral. It's completely optional.

Supplied assets are only at risk of liquidation if you borrow against them and fail to maintain enough collateral.

Here's how it works:

As long as you don't borrow, your supplied assets cannot be liquidated.