DeFi protocol Moonwell suffers $8.7 million exploit on Base: Report

DeFi protocol Moonwell suffers $8.7 million exploit on Base: Report

Moonwell currently operates across multiple chains, with Base representing the largest portion of its total value locked.

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by Vivian Nguyen

Moonwell, a multichain DeFi lending and borrowing protocol, has been hit by an exploit on Base, with attackers apparently draining about $8.7 million by manipulating the price of MAMO collateral, CertiK reported Thursday.

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The attacker targeted MAMO, a relatively illiquid token, and artificially pushed its collateral value higher before using it to borrow real cbBTC from Moonwell’s lending market. CertiK said roughly $8.7 million in stolen funds had been consolidated at an address linked to the attacker.

Moonwell allows users to supply assets and earn variable lending yields or borrow crypto assets against collateral across networks including Base, Optimism, Moonbeam, Moonriver and Ethereum. The protocol’s WELL token is primarily used for governance, staking and ecosystem incentives.

WELL spiked to $0.0045 from $0.00367 before reversing sharply to $0.0033 amid the exploit.

Following the report, Moonwell temporarily restricted borrowing across its Base Core Markets while investigating an issue affecting the MAMO market. The project said the measures are precautionary and that it will provide another update as the investigation progresses.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
FINANCE
DeFi protocol Moonwell suffers $8.7 million exploit on Base: Report
DeFi protocol Moonwell suffers $8.7 million exploit on Base: Report

Moonwell currently operates across multiple chains, with Base representing the largest portion of its total value locked.

by Vivian Nguyen

Share

Add us on Google

Moonwell, a multichain DeFi lending and borrowing protocol, has been hit by an exploit on Base, with attackers apparently draining about $8.7 million by manipulating the price of MAMO collateral, CertiK reported Thursday.

Advertisement

The attacker targeted MAMO, a relatively illiquid token, and artificially pushed its collateral value higher before using it to borrow real cbBTC from Moonwell’s lending market. CertiK said roughly $8.7 million in stolen funds had been consolidated at an address linked to the attacker.

Moonwell allows users to supply assets and earn variable lending yields or borrow crypto assets against collateral across networks including Base, Optimism, Moonbeam, Moonriver and Ethereum. The protocol’s WELL token is primarily used for governance, staking and ecosystem incentives.

WELL spiked to $0.0045 from $0.00367 before reversing sharply to $0.0033 amid the exploit.

Following the report, Moonwell temporarily restricted borrowing across its Base Core Markets while investigating an issue affecting the MAMO market. The project said the measures are precautionary and that it will provide another update as the investigation progresses.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.