Just now, another security incident exploded in the DeFi space! The Base-based lending protocol Moonwell was hit by a price manipulation attack, with losses reaching as much as $8.7 million.
The root cause of the attack lies in MAMO’s price-feeding mechanism. Because MAMO itself lacks sufficient market depth, attackers can manipulate the price to control the price feed, ultimately leading to the protocol suffering massive bad debt losses.
Moonwell has already paused some functions to address this incident. It reminds everyone that when participating in DeFi projects on the Base chain, you must pay attention to whether the project’s price oracle mechanism is secure. Assets with low liquidity used as collateral inherently carry significant risk, and market volatility plus manipulation can easily trigger systemic risk.
$ETH #DeFi #Cryptocurrency Security
The root cause of the attack lies in MAMO’s price-feeding mechanism. Because MAMO itself lacks sufficient market depth, attackers can manipulate the price to control the price feed, ultimately leading to the protocol suffering massive bad debt losses.
Moonwell has already paused some functions to address this incident. It reminds everyone that when participating in DeFi projects on the Base chain, you must pay attention to whether the project’s price oracle mechanism is secure. Assets with low liquidity used as collateral inherently carry significant risk, and market volatility plus manipulation can easily trigger systemic risk.
$ETH #DeFi #Cryptocurrency Security