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Moonwell sets Base borrow caps after MAMO collateral exploit
Moonwell said it set borrow and supply caps to 1 wei for MAMO Core Markets on Base, halting new borrowing while security firms estimate losses at about $8.7 million.
Moonwell is investigating a DeFi lending market issue on Base after security firms flagged what they described as a multimillion-dollar exploit tied to the MAMO token, The Block reports. As a precaution, the protocol set borrow caps for all Core Markets on Base to 1 wei, preventing new borrowing and limiting potential further damage.
Moonwell also set the supply caps for MAMO and its WELL token to 1 wei, while leaving other supply caps unchanged. PeckShield estimated the exploit drained about $8.7 million, with stolen funds moved into the DAI stablecoin at a single address, while CertiK similarly pegged losses at $8.7 million.
CertiK said the attacker manipulated the collateral price of the relatively illiquid MAMO token and then borrowed real cbBTC from the mCBTC market to execute the exploit. Blockaid separately identified the same apparent attack mechanism, and Moonwell said it would provide further updates as more information becomes available.
Market data cited by The Block shows WELL down about 13% over the past 24 hours and MAMO down roughly 9% over the same period. The incident adds to a heavy stretch for DeFi hacks, with multiple protocols compromised for more than $600 million since April, led by the $292 million exploit of Kelp DAO.