Two days ago I supplied xcDot to Moonwell (all my money), now it is impossible to withdraw.
From the discussion in the discord it turned out that the reason is a bad debt from the time of the collapse of Nomad in 2022, from this a reserve is created to cover it.
Now that all available limits have been withdrawn, we are trapped.
There were no warnings or explanations about this on the Moonwell website. The pools are still open for new victims.
Are there any solutions from the Moonwell team and Risk Manager Gauntlet?
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my DOT.xc are also locked. what is the moonwell and moonbeam Team doing to provide enough liquidity for all those who supported the moonwell application for a long time. to be able to withdraw?
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Hi everyone, I’m one of the xcDOT depositors.
Right now, the xcDOT market is frozen with nearly zero liquidity, and users cannot withdraw.
This feels very unfair, especially since new deposits were still allowed in 2024–2025 without clear warnings.
I believe Moonwell DAO should consider a partial compensation plan (e.g. 30%–50%) and add a clear warning banner on the frontend.
This is not only about money — it’s about protecting Moonwell’s reputation and showing users that the DAO takes responsibility.
Can we start a serious discussion on this?
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It would be good to start by reactivating loans and increasing incentives for providing liquidity
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I don’t know. The liquidation system doesn’t work the same way on moonbeam, plus moonbeam/river told everyone they planned to deploy a bridge for 2023, then 2024, to reactivate DeFI on moonriver, then on moonbeam blabla…
But when you dust off the words and see what have been done. exactly nothing, just vapourware as usual.
They had an amazing eco and community but imo their leadership and (bad) decisions destroyed all cred and potential on these networks.
Moonwell has been very agile and visionary to land on Base then, to diversify, and if they didn’t, today they won’t be here.
The superchain eco is healthy, full of promises and they deliver regularly, the incentives must concentrate on this for now and dominate right here first, the goal midterm longterm is to dethrone AAVE.
So for partners the must do with these kind of promises is to act and incentives ONLY IF they deliver first and IF they become again attractable, that is a lot of IF, and we could incentivize with mfam and not well to make mfam attractable again also, the bet should profit also the DAO.
Do not mistake, i believed a long time in the moonbeam/river eco, and even lose some money on it, but if you’re realist, they failed to deliver and worst, they lied, only promises for now.
If they do not evolve they deserve to die and the DAO must not incentive one penny into a lost cause.
They have the cards. Not moonwell.
These markets must be reactivated somehow. It’s not possible, let alone fair, to freeze users’ funds, especially when they had nothing to do with the events of 2022. We’re not discussing Moonbeam’s facts or promises here. We’re talking about the Moonwell community that entrusted its funds to the app. We’re talking about the users themselves, who remain part of the Moonwell community.
Another victim here. You should AT LEAST add a warning. I recently deposited 5k usd worth of xcDOT and it was already impossible to withdraw by then.
There is something even more worrying though, if you go to the borrow tab, it says there are 22.548 xcDOT borrowed, the total supplied is 490k. How come the difference cannot be withdrawn? And why does the contract hold less than a cent? Where are the missing 467.5k xcDOT?
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Moonwell needs to propose a plan to reactivate these markets. They didn’t mention it in the last governance call. This is a total lack of respect for those of us who entrust our funds to the platform.
Luke Youngblood: 
We ask for your collaboration for a roadmap and to restore liquidity at XCDOT.