Oracle Misconfiguration Sparks Liquidation Surge
Moonwell recently fell victim to a critical oracle misconfiguration. After integrating Chainlink's OEV wrapper contract, the price of cbETH was mistakenly set to just $1, triggering widespread liquidations across the platform.
Automated Bots Exploit the Flaw
On-chain trading bots and liquidators quickly capitalized on the error, repaying mere dollars in debt to seize thousands of dollars worth of cbETH collateral.
Protocol Implements Emergency Measures
Upon discovery, Moonwell immediately slashed the borrow and supply caps for cbETH to 0.01 to mitigate further damage. However, the team has remained tight-lipped regarding the root cause or technical details of the incident.