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The decentralized Moonwell protocol on the Base network was exploited. The attacker drained approximately $8.7 million, according to security experts from PeckShield.
The unknown attacker first artificially inflated the price of the MAMO token, then deposited overvalued coins into Moonwell as collateral. PeckShield clarified that MAMO is not a third-party token: it is a native asset of Mamo, a new AI product in the Moonwell ecosystem launched on Base.
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The protocol accepted the attacker’s MAMO at an inflated valuation and allowed the attacker to borrow liquid assets against this collateral. As a result, the attacker withdrew stablecoins (USDC), cbBTC, wstETH, and Ether from the pools.
Shortly after the attack, part of the stolen funds was converted into DAI stablecoins and remained on an address linked to the attacker, PeckShield security experts discovered.
Previously, the decentralized protocol Term Labs was subjected to a hacker attack, resulting in the theft of approximately $8.5 million. According to CertiK experts, the funds were stolen during a security incident affecting the project’s infrastructure.
