DeFi lending exploit drains $9.3M from More Markets, leaves reserves razor-thin
A DeFi lending exploit drained roughly $9.3 million from More Markets on August 31, after attackers found a way to overborrow against the protocol’s Flow EVM lending reserve. Blockaid, the blockchain security firm that flagged the incident, said the attacker combined a liquid staking token from Ankr with a capital-efficiency feature built into Aave V3’s architecture, exploiting a gap the protocol’s safeguards were never designed to catch.
Key takeaways
- More Markets lost approximately $9.3 million after attackers drained 15.5 million WFLOW tokens from its mFlowWFLOW lending reserve on Flow EVM.
- The attacker combined Ankr’s liquid staking token, ankrFLOW, with Aave V3’s efficiency mode (E-mode) to unlock borrowing capacity beyond what the collateral could support.
- After the exploit, More Markets’ total value locked fell to roughly $3.64 million against active loans of about $3.67 million, leaving almost no buffer between assets and liabilities.
- More Markets had not issued any public statement, pause, or user guidance at the time Blockaid reported the incident.
- DeFi-wide exploit losses hit $139.7 million in August 2026, the third-largest monthly total of the year, though better than July’s $254 million, according to DefiLlama.
More Markets suffers $9.3 million lending reserve exploit
The short version: an attacker manipulated a liquid staking asset inside a high-leverage lending mode and walked away with millions in WFLOW before anyone could react. Blockaid disclosed the incident in an X post on August 31, identifying More Markets — a lending protocol built by More Labs on the Flow EVM blockchain — as the target and estimating the detected impact at around $9.3 million.
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