DeFi Protocol More Markets Hit by $9.3 Million Exploit via Liquid Staking
Security firm Blockaid reported that More Markets lost $9.3 million in WFLOW after an attacker exploited an Ankr liquid staking token configuration.
Lending protocol More Markets suffered a security incident resulting in a $9.3 million loss in WFLOW. According to cybersecurity firm Blockaid, the attacker manipulated collateral mechanics involving Ankr liquid staking assets.
The perpetrator leveraged high-efficiency borrowing modes (E-mode) alongside the liquid staking token to overborrow beyond collateral constraints. The exploit drained the protocol's primary lending reserves before mitigations could be deployed.
This incident highlights ongoing smart contract and price oracle vulnerabilities tied to complex DeFi lending configurations, potentially prompting stricter risk caps for exotic collateral types.
Key takeaways
- More Markets lost approximately $9.3 million in WFLOW from its lending reserves.
- The attacker exploited Ankr liquid staking collateral and efficiency borrowing modes.
- The breach emphasizes remaining systemic risks in complex DeFi lending setups.