More Markets Suffers $9.3M Loss Due to Blockchain Exploit

A DeFi lending protocol called More Markets suffered a significant loss after attackers exploited its lending reserve on the Flow EVM blockchain. On August 31, attackers drained approximately $9.3 million from the mFlowWFLOW reserve, which is used for lending. The exploit was made possible by combining Ankr's bonded liquid staking token, ankrFLOW, with Aave V3's efficiency mode feature.

Aave V3's E-mode is designed to increase capital efficiency for asset pairs that move closely together in price. However, in this case, the attackers used ankrFLOW as collateral inside an E-mode configuration, unlocking borrowing capacity that exceeded what the underlying collateral could support.

More Markets' total value locked fell to around $3.64 million after the drain, with active loans sitting at approximately $3.67 million. This indicates that the protocol operates with almost no buffer between its holdings and liabilities.