Hey there, crypto enthusiasts! If you’ve been keeping an eye on the decentralized finance (DeFi) space, you’ve probably noticed some big moves from Moonwell DeFi, a project shaking things up with its latest strategy. On July 26, 2025, Luke Youngblood, a key figure behind Moonwell, dropped a thought-provoking thread on X that’s got everyone talking. Let’s dive into why Moonwell is skipping Ethereum mainnet and betting big on Base, and what this means for the future of DeFi.

The Unicorn Vision: Why Skip Ethereum Mainnet?

The thread kicks off with a stunning image of unicorns gathered around a shimmering Ethereum logo, set against a magical forest backdrop. It’s a metaphor for Moonwell’s ambitious vision. Youngblood explains that while Ethereum mainnet boasts a whopping $100 billion in total value locked (TVL), much of it is controlled by “ETH whales” (early investors) and big DeFi funds. Instead of chasing this crowded space, Moonwell is aiming higher—targeting the massive $100 trillion US capital markets.

This shift isn’t random. The recent passage of the GENIUS Act on July 18, 2025, has flipped the DeFi game board. This US legislation mandates that stablecoins must be backed 1:1 by US dollars held in financial institutions, effectively banning yield-bearing stablecoins like those from Aave and MakerDAO within three years. For Moonwell, which joined Circle’s Alliance Program a year ago, this was a planned move. They’ve been building compliant, future-proof solutions all along.

The Base Advantage and Regulatory Clarity

So, why Base? As an Ethereum layer-2 solution backed by Coinbase, Base offers lower fees and faster transactions, making it ideal for mass adoption. Youngblood highlights that the Coinbase and Circle partnership has turned Base into a hotspot, especially with regulatory clarity from the GENIUS Act. This law favors stablecoins like USDC, which Moonwell integrates seamlessly, giving it an edge over competitors stuck with non-compliant assets.

Meanwhile, giants like Aave and MakerDAO face a tough choice: either pivot to centralized finance (CeFi) models or ditch their stablecoin plans. Moonwell, on the other hand, has been quietly innovating, focusing on users rather than competitors—a lesson Youngblood learned during his time at AWS Cloud.

AI and Innovation: The Mamo Agent Breakthrough

One of Moonwell’s standout innovations is the Mamo Agent, an AI-powered, non-custodial finance tool. Unlike traditional systems, Mamo never takes control of your funds, offering a secure way to automate lending and borrowing. Youngblood, with 30 years of DeFi experience, including stints at Coinbase, designed Mamo to optimize returns across MorphoLabs vaults and Moonwell markets. It’s a game-changer, especially with its fully audited smart contracts.

The team also pioneered the first onchain Oracle Extracted Value (OEV) auction on Optimism superchain L2s like Base. This means they’re capturing value from market activities more efficiently than ever, outpacing even the biggest DeFi protocols in revenue on Base from June 2024 to June 2025.

Real-World Impact: Virtual Accounts and Beyond

Moonwell isn’t just about tech—it’s about people. This year, they launched virtual US checking accounts accessible to anyone, no residency required. Paired with a Visa debit card, users can borrow against Bitcoin or staked Ethereum and spend globally. Their “paycheck to payments” system even lets you earn in compliant stablecoins, beating inflation by 3x. These features, powered by partnerships with Stablecoin and Optimism, make Moonwell a leader in bridging traditional finance and DeFi.

Looking Ahead: The $100 Trillion Prize

Youngblood’s thread ends with a bold promise: Moonwell is building for the 2030s, aiming to “eat the $100 trillion US capital markets elephant.” With AI reshaping finance interfaces and Moonwell’s focus on user experience, they’re poised to lead. The team’s past success—patenting cold storage staking tech in 2019—backs this confidence. As DeFi evolves, Moonwell’s compliant, self-custodial systems position it as the only platform ready for this massive shift.

What do you think about Moonwell’s strategy? Are you excited to see how Mamo Agent and Base will shape the future? Drop your thoughts in the comments, and don’t forget to share this article with your crypto crew!