Moonwell Officially Confirms That the Protocol Suffered a Loss of Approximately $8.7 Million Due to a Price Manipulation Attack, with the Root Cause Being the Use of MAMO Price Feeds from Illiquid Markets.
The attack occurred on Moonwell Apollo markets built on Base. The attacker took advantage of the thin liquidity in the MAMO/ETH pair, manipulating the price to inflate the valuation of MAMO, and then borrowed assets far exceeding what the collateral would reasonably justify. Ultimately, this led to a shortfall in the protocol’s bad-debt reserves.
This incident once again serves as a warning to the DeFi industry: when choosing price feeds, you cannot rely on a single source only. For price risks associated with low-liquidity assets, you must put preventive controls in place in advance, or attackers will be left with easy opportunities.
$ETH
#DeFi #Moonwell #Base
The attack occurred on Moonwell Apollo markets built on Base. The attacker took advantage of the thin liquidity in the MAMO/ETH pair, manipulating the price to inflate the valuation of MAMO, and then borrowed assets far exceeding what the collateral would reasonably justify. Ultimately, this led to a shortfall in the protocol’s bad-debt reserves.
This incident once again serves as a warning to the DeFi industry: when choosing price feeds, you cannot rely on a single source only. For price risks associated with low-liquidity assets, you must put preventive controls in place in advance, or attackers will be left with easy opportunities.
$ETH
#DeFi #Moonwell #Base