Is Moonwell Safe?
Risk Grade: C (46/100)
Moonwell is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
High risk — four exploits in three years and a removed bug bounty program suggest systemic security weaknesses
A lending protocol on Base and Optimism where you deposit crypto to earn interest or borrow against it, managing $500M in deposits. It has been hacked four times in three years, including a $1M exploit in November 2025 caused by a faulty price feed. Its C- grade reflects this pattern of repeated security failures.
TVL
$50M
Mechanisms
7
Interactions
6
Value Grade
D+
Key Risks for Moonwell Users
Hacked four times in three years. The November 2025 exploit used a faulty price feed that valued one token at $5.8M instead of $3,500. An attacker borrowed $1M against worthless collateral.
The bug bounty program was removed in February 2025. Within months, the protocol suffered $2.7M in additional exploits. Without bounties, security researchers have no incentive to report vulnerabilities.
During the October 2025 market crash, the protocol accumulated $1.7M in bad debt when prices dropped too fast for the system to sell-off risky positions in time.
Top Risk Factors
- •Four major exploits in three years including a $1M Chainlink oracle manipulation in November 2025 and $1.7M bad debt from October 2025 crash
- •Removed Immunefi bug bounty program in February 2025, eliminating white-hat financial incentives months before suffering $2.7M in exploits
- •Compound v2 fork inherits known liquidation fragility during correlated market downturns with cascading bad debt risk
Risk Score Breakdown
Moonwell's highest risk area is Track Record (12/15). Here's how each dimension contributes to the overall 46/100 score:
Read the Full Moonwell Risk Report
This protocol has 3 collapse scenarios. 2 critical and 3 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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