Moonwell's $1.8M Liquidity Hole Left Unfixed in Latest Reserve Round

Moonwell, a decentralized lending protocol, has proposed a plan that leaves $1.8 million of its cbETH reserves unfixed despite a significant liquidity shortfall.

A recent reserve round published by risk service provider Anthias Labs on August 24 allocates no funds to address the issue, which was caused by an oracle error in February.

The Base market for Coinbase Wrapped Staked ETH has been carrying a net shortfall of $1.77 million, according to the allocation. This means that Moonwell's live Base markets API shows a $1.93 million supplied amount and $1.94 million borrowed amount with negative $8,223 liquidity.

The proposed plan would leave 2.8095 cbETH of listed reserves unused, which has raised concerns among suppliers. One non-liquidated supplier reported a significant issue, stating that their 1.05 cbETH position had only about 0.0000000001 cbETH available to withdraw.