Overview
Oracle feeds priced AERO, VIRTUAL, and MORPHO on Base lower compared to DEX pool prices.
An attacker flash loaned USDC/cbBTC, borrowed underpriced assets from Moonwell at 85-88% LTV, sold them on a DEX for more than the value of their flash loan, repaid the flash loan, and profited from the difference.
The user repeated this process multiple times, increasing the amount supplied and borrowed in their Moonwell position, withdrawing collateral whenever possible due to its value increasing or debt values decreasing.
This allowed the attacker to extract value in two ways: profiting from the price difference during the flash loan arbitrage and withdrawing collateral that had been "spawned in" through these flashloans.
Exploit contract: 0xA98E...667d3f |
Attacker (EOA): 0x6997...5658ff