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Moonwell suspends Base borrowing after MAMO collateral price attack

Moonwell says it set borrow caps for all Base core markets to 1 wei and supply caps for MAMO and WELL after the attacker drained more than $4 million of cbBTC.

Reported · Written up by our desk · Market Structure

Moonwell said it suffered a loss of roughly $8.7 million after an attacker manipulated the price of MAMO, a small-cap token that the lending protocol accepts as collateral on Base, then used the inflated collateral position to borrow real assets, according to The Defiant.

The protocol’s only immediate mitigation was to shut down new borrowing by setting borrow caps for every Base core market to 1 wei, effectively stopping additional loans across the deployment, and to set supply caps for MAMO and WELL to the same level.

Blockchain security firms CertiK and PeckShield put the loss at about $8.7 million, while Blockaid, which flagged the activity as it happened, observed about 50.6 cbBTC, worth more than $4 million, drained from Moonwell’s mCBTC market.

Moonwell reported the issue at 7:21 a.m. ET and said it was actively investigating, adding that the precautionary caps were intended to prevent new borrowing and limit further impact, with a scheduled monthly governance call set for 17:00 UTC later Thursday.

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