Ether briefly priced at $1 after glitch on DeFi app, triggering $1.8M in bad debt

Ether briefly priced at $1 after glitch on DeFi app, triggering $1.8M in bad debt

A misconfigured Chainlink price oracle on DeFi lender Moonwell briefly valued Coinbase Wrapped ETH (cbETH) at about $1 instead of roughly $2,200.

$1.78M ‘Vibe-Coded’ Oracle Bug Puts AI-Coauthored Contracts Under Scrutiny

Moonwell, a decentralized finance (DeFi) lending protocol deployed on Base and Optimism, was exploited for about $1.78 million after a pricing oracle …

DeFi, meet Claude: Moonwell's 'vibe-coded' oracle in $1.8M blowup

It was only a matter of time before “vibe-coded” smart contracts led to a significant loss of funds and on Sunday, an oracle misconfiguration led to users of DeFi lending platform Moonwell being liquidated for a total of 1,096 Coinbase Wrapped Staked Ether (cbETH). The protocol was also saddled with $1.8 million worth of bad debt as a result. The error was introduced in pull request 578, submitted by Moonwell core contributor “anajuliabit” and c…

Ether briefly priced at $1 after glitch on DeFi app, triggering $1.8M in bad debt - Technology Shout

A software glitch caused Coinbase Wrapped ETH (cbETH) to drop to $1 in value on the platform instead of around $2,200, a mispricing that lasted just a few minutes and left DeFi lender Moonwell with nearly $1.8 million in bad debt. The technical glitch occurred because a system update caused the platform to value cbETH solely based on its relationship to ETH (around 1.12), forgetting to take into account the actual USD price of Ethereum. Therefor…

Moonwell's AI-coded oracle glitch misprices cbETH at $1, drains $1.78M

Moonwell’s lending pools racked up about $1.78M in bad debt after a cbETH oracle mispriced the token at nearly $1 instead of around $2.2k, enabling bots and liquidators to drain collateral within hours of a misconfigured Chainlink-based update reportedly using…