Moonwell Suffers $8.7 Million Hack on Base, Halts New Loans
Summary
- The DeFi lending protocol Moonwell suffered an $8.7 million hack on the Base network.
- Moonwell lowered the borrowing cap on Base to 1 wei to limit the risk of further losses and also reduced borrowing caps for MAMO and WELL tokens to 1 wei.
- The attacker artificially inflated the collateral price of the thinly traded MAMO token, borrowed assets and withdrew them, with the stolen funds traced to a single address.
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Moonwell, a decentralized finance lending protocol, suffered an $8.7 million hack on the Base network.
Crypto Briefing reported on August 27 that the recent attack hit Moonwell on Base, causing losses of $8.7 million.
The attacker allegedly manipulated the collateral price of the thinly traded MAMO token, then used the inflated collateral value to borrow assets from Moonwell and withdraw them. The stolen funds were later traced to a single address linked to the hacker.
While investigating the incident, Moonwell lowered borrowing caps on Base to 1 wei, effectively blocking new loans. It also cut borrowing caps for MAMO and WELL tokens to 1 wei.
Moonwell said the lower borrowing limits were meant to curb the risk of further losses. The exact attack route and the possibility of recovering the stolen funds have not yet been determined.
Moonwell is a DeFi protocol that allows users to deposit cryptocurrencies to earn interest or borrow other assets against their holdings. It operates across several networks, including Base, Ethereum and Optimism.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul