{"id":77369,"date":"2026-08-27T19:07:51","date_gmt":"2026-08-27T19:07:51","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/moonwell-locks-base-borrowing-after-8-7m-mamo-attack\/"},"modified":"2026-08-27T19:07:51","modified_gmt":"2026-08-27T19:07:51","slug":"moonwell-locks-base-borrowing-after-8-7m-mamo-attack","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/moonwell-locks-base-borrowing-after-8-7m-mamo-attack\/","title":{"rendered":"Moonwell Locks Base Borrowing After $8.7M MAMO Attack"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Attackers manipulated MAMO oracle prices to drain about $8.7 million in assets from Moonwell.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Ecosystem partner Zyfai safely auto-rebalanced user funds while MAMO and WELL tokens plunged 15%.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Moonwell capped Base borrow limits to 1 wei while security teams audit the breach for upcoming fixes.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Automated Safeguards Protect User Funds<\/h2>\n<p>Decentralized lending protocol Moonwell has restricted borrowing across all Core Markets on the Base network as it investigates a security incident affecting its MAMO Core Market. Blockchain <a href=\"https:\/\/news.bitcoin.com\/security\/sandbox-sand-bridge-exploit-unbacked-tokens\/\">security firms, including Peckshield<\/a>, estimate that the attacker <a href=\"https:\/\/x.com\/PeckShieldAlert\/status\/2092929813959049347\" target=\"_blank\" rel=\"noopener noreferrer\">extracted about $8.7 million<\/a> in digital assets by manipulating the collateral price of the MAMO token.<\/p>\n<p>In response to the vulnerability, <a href=\"https:\/\/x.com\/MoonwellDeFi\/status\/2092935617688805818\" target=\"_blank\" rel=\"noopener noreferrer\">Moonwell confirmed<\/a> the active investigation and immediate risk-mitigation measures:<\/p>\n<p>\u201cWe are aware of an issue affecting the MAMO Core Market on Base and are actively investigating. As a precaution, borrow caps for all Core Markets on Base have been set to 1 wei, preventing new borrowing and limiting the potential for further impact. The supply caps for MAMO and WELL have also been set to 1 wei. All other supply caps remain unchanged.\u201d<\/p>\n<p>By dropping the borrow cap to 1 wei, Moonwell suspended new lending activity without pausing contract operations entirely.<\/p>\n<p>The incident triggered automated safeguards across ecosystem partners. Asset management platform Zyfai <a href=\"https:\/\/x.com\/Zyfai_\/status\/2092968842763104758\" target=\"_blank\" rel=\"noopener noreferrer\">disabled all Morpho vaults managed by Moonwell<\/a> as a precaution, confirming that user funds remain safe.<\/p>\n<p>According to Zyfai, automated agents executing its yield maxxing strategy had already begun rebalancing capital out of the affected vaults before the incident escalated. Zyfai reported that its risk system\u2014which tracks real-time on-chain data alongside off-chain signals such as sentiment and social media incident reports\u2014detected multiple converging risk flags. The system triggered risk-based rebalancing while notifying quant teams, who subsequently shut down all Moonwell-related <a href=\"https:\/\/www.bitcoin.com\/get-started\/how-to-yield-farm-in-defi\/?_gl=1*1bwaoie*_gcl_au*MTU5NTg4OTAzNC4xNzgxNTQzNzg1*_ga*MTU3OTQwMTMwLjE3NzM3NjQ2MDc.*_ga_ERLPF60ZDD*czE3ODc4NDQ4NzYkbzY2NCRnMSR0MTc4Nzg0NTEwMCRqNjAkbDAkaDA.\" target=\"_blank\" rel=\"noopener noreferrer\">yield opportunities<\/a>.<\/p>\n<p>Preliminary analyses by security providers Certik, Peckshield, and Blockaid show that the core exploit involved three key phases. First, the attacker targeted the low-liquidity MAMO token, artificially inflating its <a href=\"https:\/\/www.bitcoin.com\/get-started\/what-is-an-oracle\/?_gl=1*1kuk6y4*_gcl_au*MTU5NTg4OTAzNC4xNzgxNTQzNzg1*_ga*MTU3OTQwMTMwLjE3NzM3NjQ2MDc.*_ga_ERLPF60ZDD*czE3ODc4NDk1ODckbzY2NSRnMSR0MTc4Nzg1MDkzOCRqNjAkbDAkaDA.\" target=\"_blank\" rel=\"noopener noreferrer\">price oracle<\/a> metrics. Next, the attacker used the digital asset\u2019s inflated valuation as collateral to borrow higher-value assets\u2014including wrapped bitcoin (cbBTC)\u2014against the protocol. Finally, the attacker converted these assets into DAI stablecoins and consolidated them into a single wallet address.<\/p>\n<p>Following the incident, the WELL token fell roughly 15%, while MAMO dropped by nearly the same percentage. Moonwell and associated protocol security teams continue to audit the breach, with further technical post-mortems expected once the investigation concludes.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/security\/moonwell-locks-base-borrowing-after-8-7m-mamo-attack\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Attackers manipulated MAMO oracle prices to drain about $8.7 million in assets from Moonwell. Ecosystem partner Zyfai safely auto-rebalanced user funds while MAMO and WELL tokens plunged 15%. Moonwell capped Base borrow limits to 1 wei while security teams audit the breach for upcoming fixes. Automated [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":77370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77369"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=77369"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/77370"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=77369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=77369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=77369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}