Moonwell Hit by Fourth Incident in Under a Year as $9M Attack Strikes Base Network

A DeFi lending platform named Moonwell has suffered its fourth incident in under a year after an attacker drained nearly $9 million from deposits on the Base network.

The attack occurred when the attacker manipulated the collateral pricing of MAMO, a relatively illiquid token used for borrowing on Moonwell. This allowed them to borrow cbBTC and other assets against the inflated price of MAMO.

According to Blockaid's Exploit Detection, the attacker spent $7 million on pumping up the price of MAMO before selling it after the attack for an estimated loss of $3.8 million.

Moonwell quickly responded by cutting all borrow caps and supply caps to one wei, preventing new borrowing and limiting further impact.