Moonwell Protocol Exploited for $8.7M in Price Manipulation Attack on Base

Key Facts

1Moonwell protocol suffered an exploit resulting in approximately $8.7 million being drained from its MAMO Core Market on the Base network.

Amid escalating security challenges in the decentralized finance (DeFi) sector, the Moonwell protocol suffered an exploit resulting in approximately $8.7 million being drained from its MAMO Core Market on the Base network. According to reports, the attacker utilized a sophisticated price manipulation technique specifically targeting the MAMO token to extract liquidity from the protocol. Independent security analyses confirmed the attacker manipulated asset valuations to artificially inflate borrowing power.

This incident highlights liquidity risks within niche markets, with analyst data indicating that losses included various assets such as cbBTC. Based on available facts, the protocol management implemented emergency measures, including setting borrow caps to 1 wei across all Core Markets on the Base network to freeze new loan originations. Additionally, supply caps for MAMO and WELL tokens were reduced to the minimum level as a precautionary step to prevent further drainage.

Regarding the current market position, specific instrument prices remain unavailable in official closing data as of August 28, 2026, necessitating caution when assessing immediate price impact. Traders are currently monitoring the results of Moonwell's ongoing forensic examination of the MAMO Core Market breach. While the upcoming economic calendar shows no direct catalysts for the protocol, the overall stability of the Base network remains a key factor for restoring investor confidence.