# Lending Protocol Drained by Oracle Mispricing Exploit on Base Network ∞ Security

**Published:** 2025-11-11
**Categories:** Security

---

![A luminous, ice-like sphere, resembling a miniature moon, is centrally positioned on an advanced metallic platform. Surrounding the sphere are fine, light blue crystalline particles, with darker blue concentrations near its base, while blue vapor drifts around the structure](https://incrypthos.com/wp-content/uploads/2025/09/algorithmic-stability-module-for-decentralized-finance-cold-storage.jpeg)

![A meticulously crafted metallic mechanism, featuring intricate gears and ruby-like accents, is positioned on a vibrant blue base embossed with complex circuit board patterns. This visual metaphor directly represents the intricate workings of decentralized autonomous organizations DAOs and the underlying tokenomics that govern them](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-protocol-engine-on-dlt-network-architecture.jpeg)

## Briefing

The Moonwell lending protocol on the Base network suffered a critical economic exploit resulting from a temporary oracle malfunction. This failure led to a severe mispricing of the wrstETH [collateral asset](https://incrypthos.com/news/collateral-asset/), allowing a threat actor to deposit a negligible amount of tokens and borrow against a vastly inflated valuation. The core vulnerability was the collateral evaluation logic’s reliance on a single, compromised price feed. The exploit successfully drained approximately $1.1 million in assets before the protocol could halt operations.

![A prominent translucent blue, square-domed button is centered on a brushed metallic, multi-layered square base. This metallic assembly is positioned atop a larger, transparent blue block, revealing intricate internal components and light reflections](https://incrypthos.com/wp-content/uploads/2025/09/web3-infrastructure-validator-node-activation-component.jpeg)

## Context

The prevailing risk in [decentralized finance](https://incrypthos.com/news/decentralized-finance/) lending is the reliance on external price feeds, which constitute a significant attack surface for economic manipulation. Protocols often utilize multi-source oracles, but a single point of failure in a specific asset’s feed, especially for wrapped or staked tokens, creates a known vulnerability class. This incident leveraged the inherent risk of trusting external data to maintain the integrity of collateral-to-debt ratios.

![A modern, elongated device features a sleek silver top and dark base, with a transparent blue section showcasing intricate internal clockwork mechanisms, including visible gears and ruby jewels. Side details include a tactile button and ventilation grilles, suggesting active functionality](https://incrypthos.com/wp-content/uploads/2025/09/hardware-wallet-secure-enclave-cryptographic-module-decentralized-precision-engineering.jpeg)

## Analysis

The attack vector targeted the Chainlink oracle’s temporary mispricing of the wrstETH token. The [threat actor](https://incrypthos.com/news/threat-actor/) deposited a minimal amount of wrstETH as collateral, which the faulty oracle feed valued at an inflated $5.8 million. This overvaluation allowed the actor to execute multiple rapid borrowing transactions of wstETH within a single block, effectively draining the pool of available assets.

The core system compromised was the [collateral](https://incrypthos.com/news/collateral/) evaluation logic, which failed to implement sufficient sanity checks on the external oracle’s data before authorizing large loan disbursements. The attacker’s profit totaled 295 ETH, valued at about $1.1 million.

![Several faceted, clear and deep blue crystalline forms are meticulously arranged on a dark, rugged, mineral-like substrate, with a large, textured, moon-like sphere partially visible in the upper right background. The composition highlights the interplay of light and shadow on these distinct elements, creating a sense of depth and ethereal beauty](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-network-nodes-securing-transparent-blockchain-assets.jpeg)

## Parameters

- **Total Funds Drained** ∞ $1.1 Million (The estimated value of 295 ETH stolen by the attacker.)

- **Vulnerable [Asset](https://incrypthos.com/news/asset/)** ∞ wrstETH (The wrapped staked Ethereum token that was severely mispriced by the oracle.)

- **Oracle Overvaluation** ∞ $5.8 Million (The incorrect [price](https://incrypthos.com/news/price/) assigned to a minimal deposit of the collateral asset.)

- **Affected Network** ∞ Base (The layer-2 blockchain where the Moonwell [lending](https://incrypthos.com/news/lending/) platform was exploited.)

![A translucent blue device with a smooth, rounded form factor is depicted against a light grey background. Two clear, rounded protrusions, possibly interactive buttons, and a dark rectangular insert are visible on its surface](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-identity-hardware-wallet-cryptographic-primitive.jpeg)

## Outlook

Immediate mitigation requires all [protocols](https://incrypthos.com/news/protocols/) to implement robust circuit breakers and cross-check mechanisms for oracle feeds, particularly for volatile or illiquid staked assets. The second-order effect is a renewed scrutiny of oracle integration on emerging Layer-2 networks, increasing contagion risk for protocols with similar single-source price dependencies. New security standards must mandate time-weighted average price (TWAP) checks or multi-oracle validation for all collateral assets to prevent similar economic exploits.

![A futuristic, intricate mechanical assembly dominates the foreground, featuring a prominent clear glass vial and faceted blue crystalline structures against a soft grey background. The primary colors are deep blue and metallic silver, with subtle internal blue illumination](https://incrypthos.com/wp-content/uploads/2025/09/Digital-Asset-Tokenization-Protocol-Mechanism-Immutable-Ledger-Security.jpeg)

## Verdict

**The Moonwell [exploit](https://incrypthos.com/news/exploit/) confirms that single-point oracle dependency remains the most critical systemic risk for lending protocols, regardless of the underlying blockchain.**

Oracle price feed, lending protocol, collateral asset, Base network, asset mispricing, unauthorized borrowing, economic exploit, smart contract logic, single block transaction, time weighted average, external data reliance, liquidity pool, asset valuation, risk parameter, debt ratio manipulation, liquidation mechanism, emergency pause Signal Acquired from ∞ <a href="https://www.coingabbar.com/en/crypto-currency-news/defi-protocols-lose-129m-in-48-hours-amid-oracle-failures?utm_source=incrypthos.com&utm_medium=referral&utm_campaign=noo-engine.com" target="_blank" rel="nofollow">coingabbar.com</a> 

## Micro Crypto News Feeds

<a href="https://incrypthos.com/news/collateral-asset/" class="glossary-item-box">

## collateral asset 

Definition ∞ A collateral asset is a digital item pledged by a borrower to secure a loan on a decentralized platform. </a><a href="https://incrypthos.com/news/decentralized-finance/" class="glossary-item-box">

## decentralized finance 

Definition ∞ Decentralized finance, often abbreviated as DeFi, is a system of financial services built on blockchain technology that operates without central intermediaries. </a><a href="https://incrypthos.com/news/threat-actor/" class="glossary-item-box">

## threat actor 

Definition ∞ A threat actor is an individual or group that poses a risk to information systems and data security. </a><a href="https://incrypthos.com/news/collateral/" class="glossary-item-box">

## collateral 

Definition ∞ Collateral refers to an asset pledged by a borrower to a lender as security for a loan. </a><a href="https://incrypthos.com/news/asset/" class="glossary-item-box">

## asset 

Definition ∞ An asset is something of value that is owned. </a><a href="https://incrypthos.com/news/price/" class="glossary-item-box">

## price 

Definition ∞ Price represents the monetary value assigned to an asset or service in exchange for other goods or services. </a><a href="https://incrypthos.com/news/lending/" class="glossary-item-box">

## lending 

Definition ∞ Lending in the digital asset space involves the provision of cryptocurrencies to borrowers in exchange for interest payments. </a><a href="https://incrypthos.com/news/protocols/" class="glossary-item-box">

## protocols 

Definition ∞ 'Protocols' are sets of rules that govern how data is transmitted and managed across networks. </a><a href="https://incrypthos.com/news/exploit/" class="glossary-item-box">

## exploit 

Definition ∞ An exploit refers to the malicious utilization of a security flaw or vulnerability within a protocol, smart contract, or application to gain unauthorized access, steal assets, or disrupt operations. </a>

**Tags:** [Lending Protocol Exploit](https://incrypthos.com/news/lending-protocol-exploit/), [Flash Loan Attack](https://incrypthos.com/news/flash-loan-attack/), [Decentralized Finance](https://incrypthos.com/news/decentralized-finance/), [Liquidation Risk](https://incrypthos.com/news/liquidation-risk/), [Token Approval Risk](https://incrypthos.com/news/token-approval-risk/), [Collateral Overvaluation](https://incrypthos.com/news/collateral-overvaluation/)	

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**Tags:** [Asset Mispricing](https://incrypthos.com/news/asset-mispricing/), [Collateral Overvaluation](https://incrypthos.com/news/collateral-overvaluation/), [Decentralized Finance](https://incrypthos.com/news/decentralized-finance/), [Economic Exploit](https://incrypthos.com/news/economic-exploit/), [Flash Loan Attack](https://incrypthos.com/news/flash-loan-attack/), [Governance Attack](https://incrypthos.com/news/governance-attack/), [Lending Protocol Exploit](https://incrypthos.com/news/lending-protocol-exploit/), [Liquidation Risk](https://incrypthos.com/news/liquidation-risk/), [Liquidity Pool Drain](https://incrypthos.com/news/liquidity-pool-drain/), [Multisig Compromise](https://incrypthos.com/news/multisig-compromise/), [On-Chain Forensics](https://incrypthos.com/news/on-chain-forensics/), [Oracle Manipulation](https://incrypthos.com/news/oracle-manipulation/), [Precision Rounding Error](https://incrypthos.com/news/precision-rounding-error/), [Price Feed Vulnerability](https://incrypthos.com/news/price-feed-vulnerability/), [Private Key Theft](https://incrypthos.com/news/private-key-theft/), [Reentrancy Vector](https://incrypthos.com/news/reentrancy-vector/), [Risk Exposure](https://incrypthos.com/news/risk-exposure/), [Smart Contract Flaw](https://incrypthos.com/news/smart-contract-flaw/), [Token Approval Risk](https://incrypthos.com/news/token-approval-risk/), [Vault Access Control](https://incrypthos.com/news/vault-access-control/)

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---

**Original URL:** https://incrypthos.com/security/lending-protocol-drained-by-oracle-mispricing-exploit-on-base-network/
