The decentralized lending protocol Moonwell is investigating issues affecting the MAMO Core Market on Base. Security firms CertiK and PeckShield have flagged a multi-million dollar exploit incident, estimating losses of approximately $8.7 million.

Moonwell stated on X that as a precaution, the borrowing limit for all Core Markets on Base has been set to 1 wei, and the supply limits for MAMO and WELL have also been set to 1 wei. PeckShield noted that the attacker aggregated stolen funds to an address for the DAI stablecoin; CertiK indicated that the attacker manipulated the collateral price of the low liquidity MAMO token and then borrowed real cbBTC from the mCBTC market to carry out the attack, with Blockaid also identifying the same attack mechanism.

As a result, the WELL token dropped about 13% in 24 hours, while MAMO fell about 9%. This exploit incident is part of a period of frequent DeFi vulnerabilities since April, during which multiple protocols have been hacked for over $600 million, with the largest being a $292 million exploit of Kelp DAO.