Another hack struck the DeFi realm, where the shadows of greed dance with the flicker of digital flames. Moonwell, a lending platform on Base and Optimism, found itself ensnared in a web of deceit, losing a million dollars on November 4, 2025. The attack laid bare the perilous dance of reliance on external data, a fragile thread in the tapestry of trust.
According to CertiK Alert, the attacker, with the cunning of a fox, managed to borrow over 20 wstETH using a mere 0.02 wrstETH flashloan, exploiting a faulty oracle that spewed false prices of 5.8 million dollars. The profit? A staggering 295 ETH, roughly a million dollars. This swift and repeated borrowing sequence, like a thief in the night, drained Moonwell’s lending markets of their lifeblood.
#CertiKInsight 🚨
We have detected multiple exploit transactions on @MoonwellDeFi lending contract.
The exploiter was able to repeatedly borrow over 20 wstETH with only ~0.02 wrstETH flashloaned and deposited due to the faulty oracle that returns wrst price of ~5.8M$ and…
– CertiK Alert (@CertiKAlert) November 4, 2025
QuillAudits confirmed the attack’s target, the wrapped restaked ETH markets on Base and Optimism. “Another day, another Moonwell exploit. Four major incidents in three years,” they remarked, their words dripping with irony. The faulty data feed, a silent villain, allowed the hacker to trick the system, borrowing over 20 mwstETH each time, selling them for profit, and repaying the flash loan in a single, sly transaction.
Another day, another Moonwell exploit. 4th major incident in 3 years.
. @MoonwellDeFi, a Compound Finance v2 fork (with features like borrow/supply caps, cross-chain governance, and multi-token emissions), and a decentralized lending and borrowing protocol deployed on @base and…
– QuillAudits 🔜 Devconnect 🇦🇷🥷 (@QuillAudits_AI) November 4, 2025
Repeated exploits shake Moonwell’s credibility
Moonwell, once a beacon of hope, now stands as a monument to repeated folly. A troubling pattern emerged, with an Oracle hack in October 2025 costing $1.7 million, a flash loan attack in December 2024 taking $320,000, and a debt issue in 2022 tied to the Nomad Bridge. The platform’s end of its bug bounty program on Immunefi, just months before these attacks, left investors in a state of despair, questioning the very foundation of their trust.
The WELL token, once a symbol of promise, fell 13.5% in a single day, a stark contrast to the crypto market’s 3.95% decline. As of writing, WELL traded at $0.1158, a 51% drop in a month, a testament to the fickle nature of digital wealth.
In contrast, Moonwell had a strong October, earning its highest fees ever, distributing $2.12 million to lenders and reserves. “Increased borrowing demand → higher rates → more revenue → more WELL acquired in reserve auctions every month,” the platform proclaimed, but the latest incident now overshadows those triumphs, a shadow cast by the very system they relied upon.
October marked the highest month for fee generation on Moonwell. 📊
A total of $2.12M across @Base and OP Mainnet was distributed to lenders and protocol reserves.
Increased borrowing demand → higher rates → more revenue → more WELL acquired in reserve auctions every month.
– Moonwell (@MoonwellDeFi) November 3, 2025
Broader DeFi landscape faces renewed concerns
The Moonwell breach followed another massive DeFi exploit hitting Balancer on November 3, draining between $100 million and $128 million across networks. Balancer’s V2 architecture, a once-proud structure, was targeted, with losses affecting multiple liquidity pools. Security teams worked tirelessly, but the damage was done, a reminder that even the mightiest can fall.
Meanwhile, Berachain, another Ethereum-compatible Layer 1 blockchain, fell victim to an exploit tied to the Ethena/Honey tripool. To limit damage, the Berachain Foundation paused its network, a temporary balm for the wounded. “I’m sure some won’t be happy about this… but when approximately $12m of user funds are at risk… we attempted to coordinate the validator set to protect those users,” said Smokey The Bera, a leader in a time of crisis.
Despite improvements in DeFi security, problems linger. PeckShield data shows losses from hacks dropped 85.7% in October, but repeated oracle and flash loan attacks reveal the fragility of these systems. Incidents like this may push for stricter rules on oracle data, a call for multiple sources to verify prices. The Moonwell hack, a stark reminder, shows that even well-known DeFi projects can falter from simple data errors. DeFi platforms need clearer oversight, stronger audits, and more reliable pricing data to prevent such costly mistakes.
#PeckShieldAlert October 2025 saw ~15 major crypto exploits, resulting in total losses of $18.18M. This marks a -85.7% decrease from September’s $127.06M.
Notably, the Oct. 10 crypto crash-which wiped out over $20 billion in leveraged positions within hours-was the biggest…
– PeckShieldAlert (@PeckShieldAlert) November 1, 2025
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2025-11-04 17:53