moonwell was attacked over $9 million at Base's lending market

DeFi Loan Agreement Moonwell was attacked in the borrowing market on Base. The chain tracks show that the attackers borrowed a variety of authentic encrypted assets by manipulating the price of the mortgaged asset MAMO, with cumulative losses exceeding $9 million. The full statement of events and the final loss figures had not been published by the projector as of the date of the submission.

MAMO prices were rapidly raised

CertiK stated that the incident was not a direct exploitation of the Moonwell contract breach, but rather of the MAMO market, which was characterized by low liquidity and high prices that were easily driven by trade.

The chain data show that the price of MAMO rose from about $0.0105 to $0.088 at one time, close to 8 times the original price. The attackers will then use MAMO as collateral to borrow assets like cbBT, USDC, WstETH and ETH in the Moonwell market.

Assets transferred in excess of $9 million

CertiK states that assets identified as being transferred amounted to approximately $8.7 million. Monitoring data from another chain show that overall losses have exceeded $9 million.

ExVul Skyeye mentioned that the largest single-scale transfers involved 14.34 cbBTs, which amounted to approximately $1.15 million at current prices. The assets on loan, mainly cbBT, USDC, wstETH and ETH, are more liquid and more easily subject to continued transfer.

There were pricing anomalies during the year.

It's not Moonwell's first security issue this year. On 18 February, Moonwell had a price-fixing anomaly after a governance proposal had been introduced, resulting in a significant deviation from the market level of the cbETH offer on Base.

The problem at the time was related to Chainlink's OEV packaging contract. The report mentions that part of the contract code was prepared with the participation of Claude AI of Anthropic, but that a key computational step was omitted, which led to the mislabelling of the original cbETH, which was approximately $2,200, at one point, to $1.12.

Additional information:The previous pricing accident left Moonwell with about $17.8 million in bad debt. After this new round of attacks, Moonwell’s original currency fell by about 3 per cent, reporting about US$ 0.003407.