Moonwell Investigates $8.7M Exploit on Base Amid Growing AI-Driven DeFi Attacks

Decentralized lending protocol Moonwell is investigating an issue affecting the MAMO Core Market on Base after security firms CertiK and PeckShield flagged a multimillion-dollar exploit.

According to the security firms, the attacker manipulated the relatively illiquid MAMO token's collateral price, then borrowed real cbBTC from the mCBTC market to carry out the exploit.

Moonwell posted on X that as a precaution, borrow caps for all Core Markets on Base have been set to 1 wei, preventing new borrowing and limiting the potential for further impact. The supply caps for MAMO and WELL have also been set to 1 wei.

The exploit drained approximately $8.7 million, with the attacker aggregating the stolen funds in the DAI stablecoin at a single address. Moonwell's WELL token is down around 13% over the past 24 hours, according to CoinGecko data. MAMO has fallen roughly 9% over the same period.