ChainCatcher message: DeFi lending protocol Moonwell released an official statement regarding an incident where approximately $1.78 million in bad debt occurred due to an oracle configuration error. The statement confirms that a serious error in one oracle configuration caused the system to fail to calculate the cbETH price as expected using cbETH/ETH × ETH/USD, and instead only used the cbETH/ETH exchange rate. This resulted in a cbETH quote of about $1.12 instead of the true market price of approximately $2,200. Attackers could liquidate 1 cbETH with only about $1 of debt repayment, causing a large number of borrower collateral assets to be liquidated and creating significant bad debt. In total, 1,096.317 cbETH were liquidated, most of which were bad debt denominated in cbETH.
Since fixing the oracle requires a five-day governance voting and timelock process, liquidations continued during this period. The relevant fix governance proposal has now been planned for deployment.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Hey Anon Announces Launch of “Pandora” Prediction Market on Ethereum
Hey Anon launches Pandora, a decentralized AI-driven prediction market on Ethereum, empowering users to create transparent markets without central control. The platform features unique AI consensus mechanisms and aims to innovate the prediction market landscape.
CoinDesk1m ago
Crypto Events, Adapt or Die: WebZero Launches Polar to End the Era of "Blind" Web3 Event Marketing
BERLIN, GERMANY, December 31, 2025 - As the crypto industry enters a critical "year of reckoning" in 2026, WebZero has officially announced its launch of Polar to revolutionise how Web3 companies track, measure, and scale their physical event presence. With industry research indicating that >90% of
CoinDesk8m ago
Balancer Labs Announces Dissolution Following Hack, DeFi Protocol Reorganized Under DAO Management
The development company behind DeFi protocol Balancer, Balancer Labs, has announced its closure due to reasons including imbalanced financial structure and legal risks. Despite the shutdown, the protocol will continue to be operated by the Balancer Foundation and DAO. Recent security vulnerability attacks have caused its TVL to drop from a peak of $3.3 billion to approximately $158 million, a decline of over 95%. The future will involve redesigning the token economic model and operational architecture to promote sustainable development of the protocol.
MarketWhisper12m ago
Figure Tokenized Stock Ticker Changed from FGRD to FGRS
On March 24, Figure changed its tokenized stock ticker from FGRD to FGRS, in line with SEC registration and Provenance Blockchain listing information, without affecting security or trading mechanisms. The stock tokens will be issued and traded on Figure's OPEN platform and will support DeFi market lending.
GateNews15m ago
Balancer Labs shuts down 4 months after $100M+ exploit, protocol to continue
Balancer Labs, the team behind the decentralized finance protocol Balancer, is shutting down after mounting financial pressure and a $116 million hack in November, with executives proposing continuation of the protocol under a leaner, more cost-effective structure.
“After careful consideration, I h
Cointelegraph24m ago
Ethereum Core Developers to Decide Whether to Include EIP-8141 in Hegota Upgrade on March 26
On March 24, Ethereum Foundation researcher ladislaus.eth posted that Ethereum core developers will decide on March 26 whether to include EIP-8141. This proposal aims to decouple accounts from signature schemes, providing a migration path for post-quantum-safe signatures. If execution layer transactions remain dependent on ECDSA, it will result in incomplete migration.
GateNews35m ago
