Decentralized lending protocol Moonwell has proposed zero allocation for its cbETH market on Base in its latest reserve plan, despite a net shortfall of $1.77 million. Market utilization reached 100.43% with negative liquidity of $8,223, preventing some suppliers from withdrawing their funds. The problem originated from an oracle error on February 15 that mispriced cbETH at around $1.12 instead of $2,200, causing liquidators to seize 1,096 cbETH. Anthias Labs reported gross bad debt of approximately $1.8 million, with the current plan providing no explanation for the zero cbETH allocation.
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