• Moonwell’s $1.12 nightmare: A pricing glitch just let bots seize millions in ETH collateral A misconfigured Chainlink price oracle on DeFi lender Moonwell briefly valued Coinbase Wrapped ETH (cbETH) at about $1 instead of roughly $2,200. • What to know: A misconfigured Chainlink price oracle on DeFi lender Moonwell briefly valued Coinbase Wrapped ETH (cbETH) at about $1 instead of roughly $2,200, leaving the protocol with nearly $1.8 million in bad debt. • The error, triggered by a governance-approved oracle change that used only the cbETH-to-ETH ratio, allowed liquidation bots to seize 1,096.317 cbETH as if it were nearly worthless and enabled some users to borrow cheaply against minimal collateral. • Moonwell quickly cut supply and borrow caps but could not immediately correct the oracle due to a required governance vote and five-day timelock, underscoring how critical and fragile price oracles are for DeFi applications. • A pricing error that lasted only minutes has left DeFi lender Moonwell with nearly $1.8 million in bad debt after a software glitch caused the value of Coinbase Wrapped ETH (cbETH) to drop to $1, instead of roughly $2,200, on the platform. • The technical glitch happened because a system update caused the platform to value cbETH based only on its relationship to ETH (about 1.12), forgetting to factor in the actual USD price of ether.
Article Summaries:
- Moonwell’s $1.12 nightmare: A pricing glitch just let bots seize millions in ETH collateral A misconfigured Chainlink price oracle on DeFi lender Moonwell briefly valued Coinbase Wrapped ETH (cbETH) at about $1 instead of roughly $2,200. What to know: - A misconfigured Chainlink price oracle on DeFi lender Moonwell briefly valued Coinbase Wrapped ETH (cbETH) at about $1 instead of roughly $2,200, leaving the protocol with nearly $1.8 million in bad debt. - The error, triggered by a governance-approved oracle change that used only the cbETH-to-ETH ratio, allowed liquidation bots to seize 1,096.
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