Moonwell MAMO exploit drains $8.7M from Base lending market

Moonwell has halted new borrowing across its Core Markets on Base after an apparent MAMO collateral price manipulation exploit drained about $8.7 million from the decentralized lending protocol. Summary Moonwell has restricted new borrowing across its Base Core Markets after an apparent MAMO collateral price manipulation exploit drained about $8.7 million. CertiK said the attacker manipulated the relatively illiquid MAMO token’s collateral price before borrowing real cbBTC from Moonwell’s mCBTC market. Moonwell lowered all Base Core Market borrow caps to 1 wei and also set MAMO and WELL supply caps to 1 wei while it investigates the incident. PeckShield estimated losses at roughly $8.7 million and said the attacker consolidated the stolen funds into DAI at a single address. Moonwell said in an Aug. 27 post on X that it was investigating an issue affecting the MAMO Core Market and had lowered borrow caps across all Core Markets on Base to 1 wei as a precaution, effectively preventing users from opening new borrowing positions while the investigation continues. “As a precaution, borrow caps for all Core Markets on Base have been set to 1 wei, preventing new borrowing and limiting the...