{"id":56608,"date":"2025-11-04T14:17:04","date_gmt":"2025-11-04T14:17:04","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=56608"},"modified":"2025-11-04T14:17:04","modified_gmt":"2025-11-04T14:17:04","slug":"moonwell-hack-1m-lost-after-chainlink-flaw-well-crypto-slumps-to-2025-lows","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=56608","title":{"rendered":"Moonwell Hack: $1M Lost After Chainlink Flaw, WELL Crypto Slumps To 2025 Lows"},"content":{"rendered":"
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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

\"Moonwell<\/p>\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

\"Moonwell<\/p>\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