Moonwell has a $1.8M liquidity hole and its latest plan allocates $0 to fix it

Decentralized lending protocol Moonwell has proposed no cbETH repayment in its latest reserve round, even as the Base market for Coinbase Wrapped Staked ETH carries a $1.77 million net shortfall.

The allocation, published by risk service provider Anthias Labs on Aug. 24, would leave 2.8095 cbETH of listed reserves unused months after a February oracle error created the bad debt.

Moonwell's live Base markets API showed the imbalance was still present at 11:28 UTC on Aug. 25. It reported $1.93 million supplied and $1.94 million borrowed, with negative $8,223.63 liquidity and 100.43% utilization in its cbETH market calculation.

One non-liquidated supplier said a 1.05 cbETH position with no borrowing or liquidation history showed about 0.0000000001 cbETH available to withdraw. A second participant reported a similar problem on Aug. 25, although the two complaints cannot establish how many suppliers were affected.

… Continue reading the full article at the original source below.