Moonwell Probes Base MAMO Core Market Exploit; Losses Estimated at $8.7M
AI Market Summary
Moonwell is investigating an estimated $8.7M exploit on its Base MAMO Core Market, reportedly driven by low-liquidity collateral price manipulation to borrow cbBTC. The protocol has effectively halted borrowing and capped MAMO/WELL supply by setting limits to 1 wei, underscoring acute risk controls. WELL fell ~13% and MAMO ~9%, reinforcing broader DeFi security concerns amid a recent surge in exploits.
Impact level
● Medium
AI InsightAI Insight
▼ Bearish
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Moonwell, a decentralized lending protocol, said it is investigating an incident impacting the MAMO Core Market on Base after security firms CertiK and PeckShield flagged what appears to be a multimillion-dollar exploit with estimated losses of about $8.7 million.
In a post on X, Moonwell said it has taken precautionary steps by setting the borrowing limit for all Core Markets on Base to 1 wei. It also reduced supply limits for both MAMO and WELL to 1 wei.
PeckShield reported that the attacker consolidated the stolen assets into a single DAI stablecoin address. CertiK said the exploit involved manipulating the collateral price of the low-liquidity MAMO token, then borrowing real cbBTC from the mCBTC market to carry out the attack. Blockaid identified the same mechanism.
Following the incident, WELL fell about 13% over the past 24 hours, while MAMO declined roughly 9%.
The exploit adds to a sharp rise in DeFi security incidents since April. Multiple protocols have been compromised for more than $600 million over the period, with the largest loss tied to a $292 million exploit targeting Kelp DAO.
