Moonwell, the decentralized lending protocol operating on Base, has reduced the borrow cap in its MAMO Core Market to 1 wei, effectively freezing all borrowing. The attack exploited the low liquidity of the MAMO token to manipulate its price and borrow approximately $10 million in assets against artificially inflated collateral. Among the stolen assets, over $4 million in cbBTC was drained. The protocol also tightened supply caps for both MAMO and WELL to contain the damage. This attack once again highlights oracle price risk in DeFi protocols, particularly for tokens with low trading volume.
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