Moonwell Lending Protocol Loses $8.7 Million in MAMO Exploit

To contain the breach, Moonwell developers restricted all Base Core Market borrow caps to 1 wei, effectively freezing new loan activity. Supply caps for MAMO and WELL tokens were similarly restricted. Security firms PeckShield and CertiK confirmed the attacker consolidated the stolen funds into DAI at a single wallet address, while Blockaid identified the specific mechanism as a deliberate manipulation of the MAMO token’s market price to secure excess leverage.

This incident marks the latest security challenge for Moonwell, which previously navigated a $1.78 million bad debt issue caused by an oracle pricing error in February and a malicious governance proposal in March. The protocol has not yet released a full post-mortem detailing the specific contract vulnerabilities involved, stating only that its investigation remains ongoing. Market reaction was immediate, with WELL falling 13% and MAMO dropping roughly 9% in the 24 hours following the discovery of the exploit.