Moonwell Investigates $8.7 Million Exploit in MAMO Market on Base

Moonwell, a decentralized lending protocol, is currently investigating vulnerabilities in the MAMO Core Market on Base following a significant exploit that has resulted in estimated losses of approximately $8.7 million. Security firms CertiK and PeckShield have identified the incident, which involved the manipulation of the collateral price of the low liquidity MAMO token, enabling the attacker to borrow real cbBTC from the mCBTC market.

In response to the exploit, Moonwell has implemented precautionary measures by setting the borrowing limit for all Core Markets on Base to 1 wei and similarly restricting the supply limits for both MAMO and WELL tokens to 1 wei. PeckShield reported that the stolen funds were aggregated to an address associated with the DAI stablecoin, highlighting the severity of the breach.

The impact of the exploit has been reflected in the market, with the WELL token experiencing a decline of approximately 13% within 24 hours, while MAMO saw a decrease of about 9%. This incident is part of a broader trend of vulnerabilities in decentralized finance (DeFi), which has seen multiple protocols hacked for over $600 million since April, including a notable $292 million exploit involving Kelp DAO.

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Source: KLEA News