Moonwell proposes to sunset deployment on Moonbeam Network by July 31
The DeFi lending protocol is pulling up stakes from Moonbeam as the parachain itself prepares to go dark, marking another chapter in Moonwell's migration toward Base and Ethereum.
Moonwell, the decentralized lending protocol, has put forward a governance proposal to formally wind down its operations on the Moonbeam network before the chain shuts down entirely on July 31, 2026. The proposal, designated MIP-M45, is currently live for on-chain voting.
What MIP-M45 actually does
The proposal lays out a structured plan to withdraw protocol reserves from several Moonbeam markets, including GLMR, xcDOT, USDC, FRAX, and ETH. Those funds would be transferred to a Foundation-designated wallet specifically aimed at settling any bad debts remaining in the system.
Beyond the reserve withdrawal, Moonwell plans to halt all new supply and borrowing activity on Moonbeam.
Existing users still have positions open on Moonbeam, and the message from Moonwell is pretty clear. Close your positions and withdraw your funds before the deadline, or risk losing access to those assets entirely once the chain goes offline.
To nudge users toward the exit, collateral factors across Moonbeam markets will be reduced.
The bigger picture: Moonbeam’s shutdown and GLMR migration
Moonbeam’s parachain operations are being fully sunset by July 31, 2026. As part of that process, the GLMR token is migrating at a 1:1 ratio to an ERC-20 token on the Base network. A new bridge is expected to remain operational through the end of the month to facilitate the transition.
This isn’t the first time Moonwell has gone through this exercise. The protocol fully deprecated its deployment on Moonriver back on January 29, 2026, after Chainlink pulled its oracle support from that network.
Governance for Moonwell was migrated from Moonbeam to Ethereum mainnet on May 21, 2026. Just eight days later, on May 29, new lending markets on Ethereum were proposed.
What this means for investors
If you have any positions open on Moonwell’s Moonbeam deployment, the clock is ticking. Assets remaining on Moonbeam after the July shutdown may become permanently inaccessible.
For GLMR holders, the 1:1 token migration to Base needs to happen before the bridge closes. The bridge is only expected to remain operational through the end of July, which creates a tight timeline for anyone holding GLMR on the original chain.