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

2025/11/05 00:02

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.

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.
Share Insights

You May Also Like

How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings

How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings

The post How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings appeared on BitcoinEthereumNews.com. contributor Posted: September 17, 2025 As digital assets continue to reshape global finance, cloud mining has become one of the most effective ways for investors to generate stable passive income. Addressing the growing demand for simplicity, security, and profitability, IeByte has officially upgraded its fully automated cloud mining platform, empowering both beginners and experienced investors to earn Bitcoin, Dogecoin, and other mainstream cryptocurrencies without the need for hardware or technical expertise. Why cloud mining in 2025? Traditional crypto mining requires expensive hardware, high electricity costs, and constant maintenance. In 2025, with blockchain networks becoming more competitive, these barriers have grown even higher. Cloud mining solves this by allowing users to lease professional mining power remotely, eliminating the upfront costs and complexity. IeByte stands at the forefront of this transformation, offering investors a transparent and seamless path to daily earnings. IeByte’s upgraded auto-cloud mining platform With its latest upgrade, IeByte introduces: Full Automation: Mining contracts can be activated in just one click, with all processes handled by IeByte’s servers. Enhanced Security: Bank-grade encryption, cold wallets, and real-time monitoring protect every transaction. Scalable Options: From starter packages to high-level investment contracts, investors can choose the plan that matches their goals. Global Reach: Already trusted by users in over 100 countries. Mining contracts for 2025 IeByte offers a wide range of contracts tailored for every investor level. From entry-level plans with daily returns to premium high-yield packages, the platform ensures maximum accessibility. Contract Type Duration Price Daily Reward Total Earnings (Principal + Profit) Starter Contract 1 Day $200 $6 $200 + $6 + $10 bonus Bronze Basic Contract 2 Days $500 $13.5 $500 + $27 Bronze Basic Contract 3 Days $1,200 $36 $1,200 + $108 Silver Advanced Contract 1 Day $5,000 $175 $5,000 + $175 Silver Advanced Contract 2 Days $8,000 $320 $8,000 + $640 Silver…
Share
BitcoinEthereumNews2025/09/17 23:48