More Markets lending reserve drained for $9.3M: Blockaid
Blockaid said an attacker used an Ankr liquid staking token and E-mode to overborrow from More Markets and drain about $9.3 million in WFLOW from a lending reserve.
Blockchain security firm Blockaid has reported that More Markets, a decentralized lending protocol, suffered a significant exploit resulting in the loss of approximately $9.3 million in Wrapped FLOW (WFLOW) tokens. According to Blockaid, the attacker leveraged an Ankr liquid staking token in combination with the protocol's E-mode feature to overborrow from a lending reserve, effectively draining the funds.
More Markets operates as a lending and borrowing platform built on the Flow blockchain, offering users access to various DeFi financial services. E-mode, or Efficiency Mode, is a feature common in lending protocols that allows users to maximize borrowing capacity when dealing with correlated assets. The attacker appears to have manipulated this mechanism alongside the Ankr liquid staking token to exceed normal borrowing limits and extract funds from the protocol's reserves.
The incident adds to a growing list of DeFi exploits targeting lending protocol mechanics, particularly those involving liquid staking derivatives and advanced borrowing features. Security researchers have previously flagged E-mode configurations as a potential attack vector when not carefully parameterized, and this event may prompt broader scrutiny of similar implementations across competing platforms.
Investigators and the More Markets team are expected to release further details regarding the attack vector and any potential recovery efforts. Users and liquidity providers on the platform are advised to monitor official communications closely as the situation continues to develop.
Source: Cointelegraph
