{"id":110293,"date":"2025-11-04T12:30:12","date_gmt":"2025-11-04T12:30:12","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=110293"},"modified":"2025-11-04T12:30:12","modified_gmt":"2025-11-04T12:30:12","slug":"moonwell-hack-1m-lost-after-chainlink-flaw-well-crypto-slumps-to-2025-lows","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=110293","title":{"rendered":"Moonwell Hack: $1M Lost After Chainlink Flaw, WELL Crypto Slumps To 2025 Lows"},"content":{"rendered":"

The timing of this week\u2019s hacks is poor, with a heavy bearing on some of the best cryptos to buy. Following the Balancer hack, over $128 million was siphoned from multiple DeFi protocols. As a result, everyone is cautious. This is not helping crypto prices at all.<\/span><\/p>\n

Today, Moonwell DeFi has fallen victim to yet another discouraging attack. Neither tens of millions were stolen, nor is there a risk of a mini-supply chain attack in the works, but it is still a dent to what\u2019s a relatively new but <\/span>promising crypto subsector<\/span><\/a>.<\/span><\/p>\n

As of November 4, Moonwell manages over $234 million in assets \u2013 up more than four times since early 2023. At peak, the DeFi protocol had a total value locked (TVL) of nearly $400 million. Assets Under Management (AuM) have been rapidly falling. It has since shrunk to current levels from approximately $350 million in early October.<\/span><\/p>\n\n

(Source: <\/span>DefiLlama<\/span><\/a>)<\/span><\/p>\n

DISCOVER: <\/span>20+ Next Crypto to Explode in 2025<\/span><\/a><\/strong><\/p>\n

Moonwell DeFi Hack: Over $1M Lost, Blame Chainlink?<\/span><\/h2>\n

Today\u2019s hack could be a confidence-shaking event. It could potentially accelerate capital outflow from the DeFi protocol.<\/span><\/p>\n

According to blockchain security firm CertiK, Moonwell was exploited today for roughly $1 million following a flashloan attack that took advantage of faulty oracle price feeds from Chainlink.<\/span><\/p>\n

The hacker targeted Moonwell\u2019s smart contracts deployed on Base and Optimism layer-2s. <\/span><\/p>\n

Specifically, a vulnerability was found in an off-chain oracle price feed supplied by Chainlink for the rsETH\/ETH pair, which incorrectly reported the price of wrstETH, the restaked version of stETH on Lido, at over $5.8 million per token.<\/span><\/p>\n\n

(Source: <\/span>CertiKAlert, X<\/span><\/a>)<\/span><\/p>\n

Notably, at spot rates, the current price of ETH, which is the underlying price being tracked by all staked or restaked versions, is trading at below $3,500.<\/span><\/p>\n

Due to this oracle manipulation, the attacker, likely an MEV bot, inflated the perceived collateral value, allowing the address to take a substantial flash loan against otherwise dust deposits of just 0.02 wrstETH. <\/span><\/p>\n

Simply because of the faulty oracle, the protocol valued the 0.02 wrstETH deposit at over $116,000. Using this overvalued collateral, the attacker went on to borrow 20 wstETH, effectively draining Moonwell\u2019s wstETH reserves. <\/span><\/p>\n\n

The attacker went on to repeat this process across multiple transactions, per CertiK, each time flash-loaning a small amount until successfully draining 295 ETH or roughly $1M by the time the flaw was flagged. <\/span><\/p>\n

DISCOVER: <\/span>9+ Best High-Risk, High-Reward Crypto to Buy in 2025<\/span><\/a><\/strong><\/p>\n

The Bad News And The Good News<\/span><\/h2>\n

Unfortunately, this is not the first time Moonwell has lost money.<\/span><\/p>\n

From what\u2019s clear, its smart contracts are leaky, and a <\/span>permanent solution is needed<\/span><\/a>.<\/span><\/p>\n

In December 2024, Moonwell lost $320,000 in a flash loan exploit after the attacker targeted its USDC lending contract.<\/span><\/p>\n

On October 10, when crypto prices crashed, an exploit on its contract on Base led to a <\/span>loss of over $1.7M<\/span><\/a>.<\/span><\/p>\n

For now, it remains to be seen what the Moonwell development team will do to fix the problem once and for all.<\/span><\/p>\n

The good news, and perhaps a major reprieve, is that today\u2019s loss is not a direct code hack but a price manipulation exploit. It is an assurance that its lending logic is still sound, but its reliance on external price feeds is what\u2019s creating weakness.<\/span><\/p>\n

Following news of this hack, WELL USDT crashed to all-time lows, extending losses from all-time highs to over -96%.<\/span><\/p>\n\n

(Source: WELL USDT, TradingView<\/a>)<\/span><\/p>\n

DISCOVER: <\/span>15+ Upcoming Coinbase Listings to Watch in 2025<\/span><\/a><\/strong><\/p>\n

\n

Moonwell Hack: Over $1M Lost, Chainlink To Blame?<\/h2>\n

Moonwell manages over $350M worth of assets<\/span>\u00a0<\/span> <\/p>\n

Moonwell hack: Over $1M lost<\/span>\u00a0<\/span> <\/p>\n

Chainlink feeds returned false prices<\/span>\u00a0<\/span> <\/p>\n

Lending logic is still functional and secure<\/span>\u00a0<\/span> <\/p><\/div>\n

The post Moonwell Hack: $1M Lost After Chainlink Flaw, WELL Crypto Slumps To 2025 Lows<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The timing of this week\u2019s hacks is poor, with a heavy bearing on some of the best cryptos to buy. Following the Balancer hack, over $128 million was siphoned from multiple DeFi protocols. As a result, everyone is cautious. This is not helping crypto prices at all. Today, Moonwell DeFi has fallen victim to yet […]<\/p>\n","protected":false},"author":0,"featured_media":110294,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-110293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/110293"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=110293"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/110293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/110294"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=110293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=110293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=110293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}