Moonwell Suffers $8.7M MAMO Token Price Manipulation Attack

Decentralized lending protocol Moonwell has suspended borrowing across all Core Markets on its Base network after an attacker exploited a vulnerability to drain approximately $8.7 million in digital assets.

The attack, which was executed against the low-liquidity MAMO token, involved artificially inflating the price oracle metrics of the asset, using it as collateral to borrow higher-value assets, and then converting those assets into DAI stablecoins.

Moonwell's security teams are currently investigating the breach and have taken immediate risk-mitigation measures by capping base borrowing limits to 1 wei. The supply caps for MAMO and WELL tokens have also been set to 1 wei.

Asset management platform Zyfai, an ecosystem partner of Moonwell, reported that its automated safeguards prevented any losses to user funds in the affected vaults.