Moonwell suffers $9M exploit via MAMO price manipulation
6.8 Security Moonwell lost up to $9M after MAMO token price manipulation enabled attackers to borrow and swap assets. Borrowing was halted and supply caps set to 1 wei.
Moonwell, a DeFi protocol on the Base blockchain, suffered a major exploit with losses estimated between $8.7 million and $9 million. Security firms including CertiK, PeckShield, and Blockaid revealed that the attacker manipulated the price of the low-liquidity MAMO token, artificially inflating its value to use as collateral. This allowed the attacker to borrow assets such as cbBTC, USDC, WETH, and wstETH from the mCBTC market. The stolen assets were then converted into DAI and consolidated at a single address. In response, Moonwell set borrowing and supply caps for MAMO and WELL tokens to just 1 wei, effectively halting new borrowing and limiting further losses. This marks the fourth price manipulation exploit Moonwell has faced within a year. The protocol is actively investigating the incident and has promised further updates as more details become available.
