To contain the breach, Moonwell developers restricted all Base Core Market borrow caps to 1 wei, effectively freezing new loan activity. Supply caps for MAMO and WELL tokens were similarly restricted. Security firms PeckShield and CertiK confirmed the attacker consolidated the stolen funds into DAI at a single wallet address, while Blockaid identified the specific mechanism as a deliberate manipulation of the MAMO token’s market price to secure excess leverage.
In section Cryptocurrency
Moonwell Lending Protocol Loses $8.7 Million in MAMO Exploit
The decentralized lending protocol Moonwell has suspended borrowing across its Core Markets on Base following a price manipulation attack that drained approximately $8.7 million. Security researchers report that the perpetrator exploited the illiquid MAMO token to inflate its collateral value before siphoning off high-liquidity cbBTC assets.
This incident marks the latest security challenge for Moonwell, which previously navigated a $1.78 million bad debt issue caused by an oracle pricing error in February and a malicious governance proposal in March. The protocol has not yet released a full post-mortem detailing the specific contract vulnerabilities involved, stating only that its investigation remains ongoing. Market reaction was immediate, with WELL falling 13% and MAMO dropping roughly 9% in the 24 hours following the discovery of the exploit.
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