After the Moonwell Attack, the Base Core Markets Suspend New Borrowing
After the price manipulation attack on Moonwell’s MAMO market on Base, Moonwell has reduced the borrowing limits of all core markets to 1 wei, effectively preventing any new borrowing. CertiK and PeckShield estimate losses of about $8.7 million: the attacker inflated the prices of thinner-liquidity MAMO, then borrowed real assets such as cbBTC using overvalued collateral.
This incident affects not only MAMO holders. Even if the collateral is a different asset, users currently cannot open new borrowings in these core markets.
The issue is therefore more specific: a lending protocol adds a new type of collateral—not just supporting one more asset, but also bringing its liquidity and pricing risks into the entire market.
Moonwell is still investigating, and the final losses and remediation plan are not yet clear.
#Base #DeFi #Safety
After the price manipulation attack on Moonwell’s MAMO market on Base, Moonwell has reduced the borrowing limits of all core markets to 1 wei, effectively preventing any new borrowing. CertiK and PeckShield estimate losses of about $8.7 million: the attacker inflated the prices of thinner-liquidity MAMO, then borrowed real assets such as cbBTC using overvalued collateral.
This incident affects not only MAMO holders. Even if the collateral is a different asset, users currently cannot open new borrowings in these core markets.
The issue is therefore more specific: a lending protocol adds a new type of collateral—not just supporting one more asset, but also bringing its liquidity and pricing risks into the entire market.
Moonwell is still investigating, and the final losses and remediation plan are not yet clear.
#Base #DeFi #Safety