More Markets Lending Protocol Loses $9.3M in Staking Token Exploit
DeFi lending platform More Markets lost approximately $9.3 million after an attacker exploited loan collateral parameters via an Ankr liquid staking token.
Decentralized lending platform More Markets suffered a $9.3 million exploit after an attacker manipulated loan collateral mechanisms to drain Wrapped Flow (WFLOW) from its reserves, according to security firm Blockaid. The exploit leveraged Ankr's liquid staking token alongside the platform's high-efficiency borrowing mode (E-mode).
By exploiting pricing or collateral ratio discrepancies within E-mode, the attacker was able to overborrow significantly against the deposited liquid staking assets. The incident exposes persistent vulnerabilities in DeFi protocols when integrating complex yield-bearing derivatives without robust oracle and collateral safeguards.
The attack highlights the risks associated with capital-efficiency features in decentralized lending markets. Protocol developers are expected to reevaluate leverage limits and oracle configurations for liquid staking assets to prevent similar drain attacks across decentralized platforms.
Key takeaways
- More Markets lost $9.3 million in WFLOW through an overborrowing vulnerability.
- The exploit targeted high-efficiency borrowing mode (E-mode) using Ankr staking tokens.
- The incident underscores ongoing collateral and oracle risks in complex DeFi lending designs.