# Warden Finance - Base Liquidity Incentives

**URL:** https://forum.moonwell.fi/t/warden-finance-base-liquidity-incentives/608
**Category:** Updates
**Tags:** base
**Created:** [September 1, 2023, 8:58pm UTC](https://forum.moonwell.fi/t/warden-finance-base-liquidity-incentives/608 "2023-09-01T20:58:46Z")
**Posts on this page:** 1
**Showing post:** 8

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### Author: ![WardenFinance](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/wardenfinance/32/427_2.png) [@WardenFinance](https://forum.moonwell.fi/u/WardenFinance)
#### Post date: [January 30, 2024, 7:09pm UTC](https://forum.moonwell.fi/t/warden-finance-base-liquidity-incentives/608/8 "2024-01-30T19:09:33Z")

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# Rebalancing of Base Liquidity Incentives (2024-01-27)

## Key observations

- Moonwell markets utilization
  - rETH and cbETH markets are underutilized (15% utilization vs 45% kink). Demand for borrowing on such markets has historically been not very elastic to rates.
  - All markets other markets are at optimal utilization level (slightly below kink)

- Moonwell markets total supply vs on-chain circulating supply
  - DAI and rETH have low circulating supply on Base relative to the current total supply on Moonwell Base deployment. (total supply \> 50% circulating supply) Low on-chain liquidity increases the risk of accumulating bad debt when users hold very concentrated positions.
  - wstETH and Native USDC circulating supply have steadily increased over the last month. Increased on-chain liquidity reduces the risk of accumulating bad debt for the protocol, allowing for more growth to be sustained on lending markets.
  - USDbC on-chain circulating supply (75M) has been on a strong downtrend as users have started to migrate more aggressively towards Native USDC (210M).

 ![](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/e/e07a641015c0e299bd6429b76d3b2b865000e774.jpeg)

## Analysis

The set of changes we have rolled out on Jan 27 aim to address the following concerns:

- Address low on-chain circulating supply for DAI and rETH
- Sustain growth for ETH and wstETH

## Applied changes

| Reward distribution (% of allocation) | cbETH | DAI | USDbC | USDC | ETH | wstETH | rETH |
| --- | --- | --- | --- | --- | --- | --- | --- |
| WELL supply | 20% | 18%→10% | 0% | 20% | 36%→40% | 4%→8% | 2% |
| WELL borrow | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| USDC supply | 20% | 18%→10% | 0% | 20% | 36%→40% | 4%→8% | 2% |
| USDC borrow | 0% | 0% | 0% | 0% | 0% | 0% | 0% |

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_[View the full topic](https://forum.moonwell.fi/t/warden-finance-base-liquidity-incentives/608)._