Moonwell proposes no cbETH repayment despite $1.77 million Base shortfall

Moonwell's latest reserve allocation proposes no cbETH repayment despite a $1.77 million net shortfall in its Base market for Coinbase Wrapped Staked ETH. Published by risk service provider Anthias Labs on Aug. 24, the plan would leave 2.8095 cbETH in listed reserves unused. Moonwell's Base markets API showed $1.93 million supplied, $1.94 million borrowed, negative $8,223.63 liquidity and 100.43% utilization at 11:28 UTC on Aug. 25. A supplier with a 1.05 cbETH position and no borrowing or liquidation history reported only about 0.0000000001 cbETH available to withdraw, while another participant described a similar issue. The shortfall followed a Feb. 15 oracle misconfiguration that priced cbETH near $1.12 rather than roughly $2,200. Liquidators seized 1,096.317 cbETH, leaving about $1.8 million in initial total bad debt. A later recovery proposal estimated roughly $2.7 million in net losses across about 181 liquidated borrowers. The latest post, first published by CryptoSlate, did not identify a clear recovery path for non-liquidated suppliers.

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