Moonwell Suppliers Seek Remediation for Illiquid Base cbBTC Market

A depositor in Moonwell's Base cbBTC Core market submitted a formal governance petition on Nov. 3, 2026, requesting a definitive remediation schedule following an August exploit that left the pool largely insolvent ¹.

The market suffered bad-debt exposure following an incident in the protocol's MAMO market on Aug. 27, 2026 ¹. According to protocol risk assessor Anthias Labs, the Base cbBTC Core pool held $4.29 million in gross bad debt—equivalent to roughly 54.87 cbBTC—against reserves of only 0.162 cbBTC ($12,612) as of late October ². Earlier estimates by Anthias Labs on Sept. 29 showed that 93.5% of the market's debt was tied up in insolvent borrower accounts, leaving supplier balances backed by only about 22% in cash and healthy loans ¹.

Suppliers Request Fair Withdrawal Queue

Lenders point out that recent governance measures, including proposals MIP-X66 and MIP-X69, adjusted interest accrual on bad positions but failed to establish a compensation roadmap ¹. Because any marginal repayments into the pool are immediately drained by automated withdrawal scripts, manual depositors face an illiquid market with effectively zero redeemable liquidity ¹.

The petition asks Moonwell governance and Anthias Labs to create a dedicated claims contract or pro-rata withdrawal queue, clarify whether the Moonwell Foundation treasury will contribute, and release a progress update on asset recovery work by security firm Zero Shadow ¹. Depositors also requested an in-app notice on front-ends, noting that wallet dashboards still display stuck cbBTC balances at full face value ¹.