I think we should have a cashback system with the Moonwell card. I believe thats the only thing missing. It could simply be .5-1.5% and have different tiers. I think this will bring the more adoption to the ecosystem as many people look for cashback reward systems to spend their money on.
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I agree with this sentiment on a high level. Candidly, I’ve been thinking about how the DAO could position itself to compete more aggressively in the lending space, maybe a general post for the future. As for this idea though, it makes sense, though I’m not sure and doubtful this could work by directly leveraging the WELL token for this. So, other protocols have tried this before, like the GnosisDAO folks. They’ve rewarded over 1.7K GNO to their users. Now, the user base for Gnosis pay is extremely small, if the Steakhouse dashboard is right it’s about ~1.5k (because it is currently linked to Europe only), but I think Moonwell stands to gain significantly from the presence of its card everywhere and we can bootstrap this further with rewards.
Though we should ask ourselves what the KPIs should be for the card and if upon reaching targets these rewards should be decreased/changed in some manner. For reference, the way Gnosis executes their rewards is by doing a tiered system, incentivizing those who hold GNO in their reward account with a percentage of cashback per purchase (Source):
- ≥0.1 GNO: 1%
- ≥1 GNO: 2%
- ≥10 GNO: 3%
- ≥100 GNO: 4%
We could copy this method or we could do usage-based tiers for those spending over certain amount. I’d also think it would be beneficial (this may already be in place) to think about referral programs to make the card expand more rapidly and get folks to advertise moonwell for us. I’m sure I could think of more, but I’m also sure that some of the Lunar folks have thought of some ideas as well that we’d all be keen to hear about.
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I completely agree with this! I’ve been using the Fold app to manage my finances because it allows me to receive deposits, just like Moonwell’s new banking feature, but it also offers Bitcoin (sats) cashback on purchases. Their rewards system categorizes spending-for example, restaurants and bars earn 1.5% back, as well as travel, while bill payments receive 0.5% back.
Moonwell could take a similar approach, either by implementing a category-based rewards system like Fold or a tiered structure, as you mentioned, based on spending, holdings, or other engagement metrics.
Personally, I want to do as much as possible on-chain and away from traditional finance. I love Moonwell and its products- I’m invested in the token, staking over 80% of my holdings, supplying BTC, and actively using the borrowing system. My goal is to use Moonwell as my complete personal banking system, but the one thing holding me back is a cashback rewards system.
This is a key factor in my decision-making for spending, and I know many others feel the same. If we want Moonwell to be the #1 DeFi protocol and onboard more people on-chain, this would be the perfect finishing touch. A cashback system would make the Moonwell card stand out and give it a competitive edge in the market.