DeFi lending protocol Moonwell has experienced a governance attack. The attacker purchased approximately 40 million MFAM tokens for $1,800 and attempted to transfer admin rights of core contracts such as the lending market through a proposal to extract user funds. Voting is currently underway, with opposition votes leading, but the outcome has not yet been decided.

On March 26, DeFi lending protocol Moonwell was subjected to a governance attack. The attacker used about $1,800 to purchase 40 million MFAM tokens and pushed a malicious proposal, putting over $1 million of user funds at risk. The proposal transferred control to the attacker's contract, affecting multiple lending markets.

DeFi lending protocol Moonwell incurred $1.78 million in bad debt due to an oracle configuration error. A recovery plan has been announced, including integrating the MFAM community into the WELL ecosystem, initiating partial compensation, and continuing compensation through protocol revenue. MFAM holders and stkWELL stakers will receive compensation at a ratio of 1:1.5.