A supplier in Moonwell‘s Base cbBTC Core market filed a formal governance request on Nov. 3 asking the lending protocol’s contributors and its risk provider, Anthias Labs, for a remediation plan with a timeline. The request came nearly 10 weeks after the Aug. 27 MAMO exploit left the market with bad debt.
The author, who posts under a forum username and says they hold about 1.462 cbBTC across three wallets, wrote that there is “still no published remediation path for cbBTC suppliers” and offered to share wallet addresses with contributors privately. Unchained has not verified those holdings. As of about 20:55 UTC on Nov. 3, the thread had no replies.
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About $1.72 Left to Withdraw
Unchained’s own read of the market’s contract on Base, at block 53,474,710 (20:46 UTC on Nov. 3), showed about 0.0000221 cbBTC of cash, or roughly $1.72 at CoinGecko’s cbBTC price of $77,683. That cash is all suppliers can withdraw. The same read showed about 58.65 cbBTC, roughly $4.56 million, lent out against about 58.48 cbBTC supplied, with about 0.17 cbBTC in reserves.
Anthias counts most of those loans as bad debt. Its weekly update for Oct. 9 to 15 put gross bad debt in the market at 54.8 cbBTC, against reserves of 0.1364 cbBTC, and its update for Oct. 23 to 29 showed 54.87 cbBTC. In recommendations dated Sept. 29, Anthias put 93.5% of the cbBTC market’s debt in insolvent accounts and described it as a market “whose supplier balances are only about 22% backed by cash and healthy loans.”
Reserves Went to the USDC Market
MIP-X66, executed in early September, lowered projected interest on bad debt and repaid about $247,000 of protocol-owned reserves into the Base USDC Core market, which the post-mortem listed with about $2.35 million of residual attacker debt. The cbBTC market got no reserve repayment. MIP-X69, which took effect on Base on Oct. 17 according to Unchained’s read of the market contract, fixed cbBTC’s borrow rate at 1% and set its reserve factor at 99%. “None of them addresses repaying suppliers,” the cbBTC request says of the two proposals, which it describes as reducing interest accrual on bad debt.
A USDC supplier wrote that users watching the market said the liquidity from what the supplier identified as that repayment “was consumed within seconds.” The cbBTC request asks that any money sent to its market be split pro rata among current suppliers, for example through a claim contract or a withdrawal queue.
What the Request Seeks
The supplier also asks whether the Moonwell Foundation treasury will be tapped, how recoveries would be divided among affected markets, whether cbBTC suppliers rank with or behind the earlier cbETH remediation, and it requests regular cbBTC accounting. A September governance report posted to Moonwell’s forum says contributors are pursuing the stolen funds together with law enforcement and the security firm zeroShadow. None of the forum posts Unchained reviewed gives a recovered amount.
Related Listen: Why Aave’s Unified Pool Turned a Bridge Hack Into $193M in Bad Debt
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