TheBlock
Moonwell set borrow caps for all Core Markets on Base to 1 wei after CertiK and PeckShield flagged an apparent exploit in the MAMO Core Market. Both firms estimated losses at roughly $8.7 million, with the attacker aggregating stolen funds in DAI at a single address; Blockaid identified the same apparent attack mechanism. Moonwell also set supply caps for MAMO and WELL to 1 wei, while leaving all other supply caps unchanged.
Why it matters
CertiK said the attacker manipulated the price of relatively illiquid MAMO, then borrowed real cbBTC from the mCBTC market. The reported path puts oracle and collateral controls at the center of the incident. A weakly traded asset can transmit pricing risk into a broader lending pool, turning a narrow market weakness into a protocol-level loss. Moonwell continues to investigate.
The 1 wei borrow cap prevents new borrowing across Base Core Markets and limits potential further impact. The MAMO and WELL supply caps restrict fresh deposits in those markets, while other supply caps remain unchanged.
Market impact
WELL fell around 13% over 24 hours and MAMO dropped roughly 9% over the same period. The reaction extends the fallout beyond the reported drain and puts both tokens under pressure.
The incident comes as multiple DeFi protocols have been hacked for more than $600 million since April, led by Kelp DAO's $292 million exploit. Moonwell said it will share further updates as more information becomes available.
Frequently asked questions
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How did the attacker reportedly use MAMO collateral?
CertiK said the attacker manipulated the price of relatively illiquid MAMO, then borrowed real cbBTC from the mCBTC market.
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What emergency limits did Moonwell impose on Base markets?
Moonwell set borrow caps for all Core Markets on Base to 1 wei and supply caps for MAMO and WELL to 1 wei. Other supply caps remained unchanged.
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How large were the estimated losses, and where were the funds held?
PeckShield and CertiK estimated the losses at roughly $8.7 million. The attacker aggregated the stolen funds in DAI at a single address.
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How did WELL and MAMO prices react after the incident?
WELL fell around 13% over 24 hours, while MAMO dropped roughly 9% over the same period.
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How does the Moonwell incident fit into the wider DeFi exploit wave?
Multiple DeFi protocols have been hacked for more than $600 million since April, led by Kelp DAO's $292 million exploit.
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