A Moonwell supplier has asked for a dated plan to address losses in the protocol’s Base market for Coinbase Wrapped Bitcoin (cbBTC), where a Nov. 3 snapshot showed only $1.72 available for withdrawals.
A read of the Base market contract at 3:46 p.m. ET (20:46 UTC) showed 0.0000221 cbBTC in withdrawable cash. The market had 58.65 cbBTC lent out, worth about $4.56 million, against 58.48 cbBTC supplied, and about 0.17 cbBTC in reserves.
A cbBTC supplier filed a request Tuesday, Nov. 3, asking Moonwell contributors and risk provider Anthias Labs to publish a remediation plan with a timeline. The Aug. 27 MAMO exploit had left the market with bad debt about 10 weeks earlier.
For Oct. 23-29, gross bad debt in the cbBTC market was 54.87 cbBTC. As of Sept. 29, 93.5% of the market’s debt was in insolvent accounts, while cash and healthy loans covered about 22% of supplier balances.
Moonwell’s MIP-X66 directed about $247,000 in protocol reserves to its Base USDC market in September; the cbBTC market received no reserve repayment. An October governance measure set cbBTC’s borrow rate at 1% and its reserve factor at 99%. Neither measure addressed repayment to cbBTC suppliers.
The request asks that any funds sent to the cbBTC market be distributed among current suppliers in proportion to their share, through a claim contract or withdrawal queue. It also seeks regular market accounting and asks whether the Moonwell Foundation treasury will contribute to remediation and how any recoveries would be divided among affected markets. The forum thread had no replies as of 3:55 p.m. ET (20:55 UTC) Nov. 3.
Enna Lee
Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to [email protected].
