defi lending · Global

Moonwell

Non-custodial DeFi lending protocol operating isolated lending markets across multiple networks. In August 2026, Moonwell's Base MAMO Core Market suffered a market-level exploit combining collateral-accounting inflation and MAMO oracle-price manipulation. Emergency controls sharply restricted affected borrowing and supply parameters while Moonwell continued operating.

Also known as: Moonwell Protocol, Moonwell Lending, Moonwell Core Markets

Status
Active
Outcome
Unknown
Confidence
High
Last verified
2026-09-03
Launch
End
Failure reasonUnknown
Events1
Evidence4
Products1

Case summary

What happened

On 2026-08-27, Moonwell disclosed a Base incident involving the MAMO Core Market. The post-mortem describes a combined path in which collateral accounting and MAMO price manipulation enabled excessive borrowing against the affected market. Moonwell's emergency response included setting Base Core Market borrow caps to 1 wei and MAMO/WELL supply caps to 1 wei. External security reporting estimated losses around USD 8.7 million, while Moonwell's own post-mortem separately reported remaining borrower obligations around USD 9.131 million after liquidations; CYA preserves those as different metrics rather than collapsing them into a single loss figure. Moonwell remained operational after the incident.

Customer result

Customer outcome

Unknown

No protocol-wide recovery percentage is inferred. Different loss/obligation figures in reviewed sources are preserved as distinct metrics.

Estimated recovery
Not classified. Reviewed sources establish a bounded market exploit and emergency mitigation but do not establish a completed uniform lender recovery or final recovery percentage.
Repayment started
Repayment completed
Confidence
High

Asset treatment

Terms risk

Customer-owned

Moonwell is modeled as non-custodial smart-contract lending infrastructure. This does not remove oracle, collateral, liquidity, liquidation, market-configuration or governance risk, and does not imply that every isolated market has equivalent risk.

Affected product
Confidence
High

Known unknowns

Uncertainty

The August 2026 incident is bounded to the Base MAMO Core Market and associated risk controls. CYA does not treat the external USD 8.7M estimate and the protocol's approximately USD 9.131M remaining borrower obligations as equivalent. No protocol-wide insolvency, universal customer loss, or completed recovery percentage is inferred.

Chronology

Historical record

price manipulationHigh impact2 sources

MAMO Core Market exploit on Base

Moonwell's post-mortem describes an exploit of the Base MAMO Core Market that combined collateral-accounting inflation with MAMO oracle-price manipulation. Emergency mitigation sharply reduced relevant borrow and supply caps. External reporting estimated approximately USD 8.7 million of losses, while the protocol separately reported approximately USD 9.131 million of remaining borrower obligations after liquidations; these metrics are not treated as interchangeable.

Market-level incident. No single canonical loss_usd or bad_debt_usd value is assigned because the reviewed sources describe different metrics and scopes.

Source record

Evidence dossier

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Showing 4 of 4 evidence records

Entity

1 sources

Event

2 sources
community referenceMediumEvent linked

Post-Mortem: MAMO Market Incident on Base

Moonwell Governance Forum / Anthias Labs · 2026-08-31

Protocol governance post-mortem describing the exploit path, emergency mitigation, exact onchain amounts and remaining borrower obligations after liquidations.

community referenceMediumEvent linked

Weekly Governance Update: Week of Aug 24th, 2026

Moonwell Governance Forum / Boardroom · 2026-08-31

Moonwell governance recap confirming the August 27 exploit of the MAMO Core Market on Base and publication of the full post-mortem.

status

1 sources
Official statementHigh

Moonwell Yield Backend

Moonwell

Official Moonwell repository providing current Base core-market and vault information, including market caps and live APR/APY data; supports continuing active operation after the incident.

Comparative records

Independent archive

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