Moonwell Ignores $1.8M Liquidity Hole in Latest Reserve Plan

Moonwell's latest reserve plan allocates $0 to address its cbETH market liquidity shortfall, which stands at $1.77 million.

The issue began in February when a oracle error priced cbETH near $1.12 instead of the actual price of roughly $2,200, resulting in about $1.8 million in initial bad debt.

Despite this, Moonwell's latest plan does not allocate any repayment to the Base market for cbETH, leaving suppliers with unclear recovery paths and negative liquidity.