Moonwell was exploited for 295 ETH, using flawed pricing from an external offline oracle. The DeFi lending protocol suffered a similar exploit earlier in October and apparently did not fix the flaw, allowing the hacker to attack again.Moonwell was exploited for 295 ETH, using flawed pricing from an external offline oracle. The DeFi lending protocol suffered a similar exploit earlier in October and apparently did not fix the flaw, allowing the hacker to attack again.

DeFi lender Moonwell hit by $1M exploit tied to Chainlink data error

Moonwell, a multi-chain lending protocol, was exploited through flawed oracles and pricing data. The platform lost around $1M just a day after the larger Balancer hack. 

Moonwell, the multi-chain lending protocol, was exploited through flawed oracle data. The estimated losses were just $1M, arriving a day after the bigger Balancer hack

BlockSec Phantom detected a series of suspicious outflows from the protocol, alerting to a potential smart contract exploit. 

The exploiter used a pricing flaw to borrow and trade specific types of wrapped ETH. The exploit depended on a price disparity for borrowing 20 wstETH against only 0.00002 wrstETH. The hacker pocketed the difference when trading, for a total of 295 ETH in gains. 

The low collateral generated immediate transactions of wstETH, while the loan was repaid in the same block. The flawed price was supplied by an off-chain oracle. 

The hacker was capable of exploiting the contract, as the oracle returned a price of $5.8M per wrstETH. Based on transaction data, Moonwell used ChainLink, which apparently made the pricing mistake. 

The hacker just had to use the favorable conditions for a flash loan and repeat several times to complete the exploit. The exploit sets the bigger issue of oracle reliability, even coming from the market leader ChainLink. 

Moonwell marks fourth significant exploit

Moonwell is a relatively old DeFi protocol, spread across multiple chains. As of November 2025, the protocol held $213M in its lending vaults. Moonwell uses Base, Optimism, Moonbeam, and Moonriver networks. 

The protocol has seen previous attacks, with four exploits in the past three years. Moonwell is a fork of Compound V2, inheriting some of the protocol’s problems. 

Previously, Moonwell suffered a bad loan incident on October 10, losing $1.7M. In December 2024, the protocol saw another flash loan exploit for $320K. In 2022, Moonwell suffered losses due to a bridge exploit, which affected the protocol. 

WELL token crashes after exploit

Moonwell’s native WELL token crashed after the news of the exploit. WELL lost over 15% to $0.011. As with other hacks, the losses from broken reputation and token crashes are even bigger than the exploit itself. 

The exploit brought a loss of reputation for Moonwell, causing a bank run on its stablecoin vaults. Users withdrew their USDC, causing effective APY to spike as high as 168%. The run from Moonwell vaults follows withdrawals from Balancer on Monday. 

Moonwell’s team did not comment on the hack for hours after the incident. The current exploit is seen as similar to the one on October 10, which means the protocol did not implement a fix. On-chain data shows a similar attack may have happened, taking 269 ETH through flawed pricing, but neither the team nor researchers noticed the withdrawals at that time. 

Moonwell claims to have undergone multiple security audits, but this did not prevent the additional hack. Despite the lower level of attacks against Web3 protocols, the recent events show the Ethereum ecosystem may hold risks when tasked with securing more value and bigger trades.

Join a premium crypto trading community free for 30 days - normally $100/mo.

Market Opportunity
DeFi Logo
DeFi Price(DEFI)
$0.000583
$0.000583$0.000583
-5.66%
USD
DeFi (DEFI) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Wormhole launches reserve tying protocol revenue to token

Wormhole launches reserve tying protocol revenue to token

The post Wormhole launches reserve tying protocol revenue to token appeared on BitcoinEthereumNews.com. Wormhole is changing how its W token works by creating a new reserve designed to hold value for the long term. Announced on Wednesday, the Wormhole Reserve will collect onchain and offchain revenues and other value generated across the protocol and its applications (including Portal) and accumulate them into W, locking the tokens within the reserve. The reserve is part of a broader update called W 2.0. Other changes include a 4% targeted base yield for tokenholders who stake and take part in governance. While staking rewards will vary, Wormhole said active users of ecosystem apps can earn boosted yields through features like Portal Earn. The team stressed that no new tokens are being minted; rewards come from existing supply and protocol revenues, keeping the cap fixed at 10 billion. Wormhole is also overhauling its token release schedule. Instead of releasing large amounts of W at once under the old “cliff” model, the network will shift to steady, bi-weekly unlocks starting October 3, 2025. The aim is to avoid sharp periods of selling pressure and create a more predictable environment for investors. Lockups for some groups, including validators and investors, will extend an additional six months, until October 2028. Core contributor tokens remain under longer contractual time locks. Wormhole launched in 2020 as a cross-chain bridge and now connects more than 40 blockchains. The W token powers governance and staking, with a capped supply of 10 billion. By redirecting fees and revenues into the new reserve, Wormhole is betting that its token can maintain value as demand for moving assets and data between chains grows. This is a developing story. This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/wormhole-launches-reserve
Share
BitcoinEthereumNews2025/09/18 01:55
Top Altcoins To Hold Before 2026 For Maximum ROI – One Is Under $1!

Top Altcoins To Hold Before 2026 For Maximum ROI – One Is Under $1!

BlockchainFX presale surges past $7.5M at $0.024 per token with 500x ROI potential, staking rewards, and BLOCK30 bonus still live — top altcoin to hold before 2026.
Share
Blockchainreporter2025/09/18 01:16
Best Crypto to Buy as Saylor & Crypto Execs Meet in US Treasury Council

Best Crypto to Buy as Saylor & Crypto Execs Meet in US Treasury Council

The post Best Crypto to Buy as Saylor & Crypto Execs Meet in US Treasury Council appeared on BitcoinEthereumNews.com. Michael Saylor and a group of crypto executives met in Washington, D.C. yesterday to push for the Strategic Bitcoin Reserve Bill (the BITCOIN Act), which would see the U.S. acquire up to 1M $BTC over five years. With Bitcoin being positioned yet again as a cornerstone of national monetary policy, many investors are turning their eyes to projects that lean into this narrative – altcoins, meme coins, and presales that could ride on the same wave. Read on for three of the best crypto projects that seem especially well‐suited to benefit from this macro shift:  Bitcoin Hyper, Best Wallet Token, and Remittix. These projects stand out for having a strong use case and high adoption potential, especially given the push for a U.S. Bitcoin reserve.   Why the Bitcoin Reserve Bill Matters for Crypto Markets The strategic Bitcoin Reserve Bill could mark a turning point for the U.S. approach to digital assets. The proposal would see America build a long-term Bitcoin reserve by acquiring up to one million $BTC over five years. To make this happen, lawmakers are exploring creative funding methods such as revaluing old gold certificates. The plan also leans on confiscated Bitcoin already held by the government, worth an estimated $15–20B. This isn’t just a headline for policy wonks. It signals that Bitcoin is moving from the margins into the core of financial strategy. Industry figures like Michael Saylor, Senator Cynthia Lummis, and Marathon Digital’s Fred Thiel are all backing the bill. They see Bitcoin not just as an investment, but as a hedge against systemic risks. For the wider crypto market, this opens the door for projects tied to Bitcoin and the infrastructure that supports it. 1. Bitcoin Hyper ($HYPER) – Turning Bitcoin Into More Than Just Digital Gold The U.S. may soon treat Bitcoin as…
Share
BitcoinEthereumNews2025/09/18 00:27