Moonwell continues to address the fallout from one of the more significant incidents in decentralized finance, focusing on the ongoing cleanup operations. The protocol recently completed its third round of remediation payments related to a pricing bug that emerged in February 2026. During this round, 147.12137 ETH was distributed among wallets impacted by the bug, elevating the total compensation distributed so far to approximately 390.62 ETH. This amount reflects months of diligent treasury management, coordination efforts from governance, and a careful calculation of losses across more than 200 affected addresses.
What caused the issues and who is affected? The problems originated from governance proposal MIP-X43, which had incorrectly configured a Chainlink oracle for cbETH, utilized for Coinbase’s liquid staking services. This misconfiguration ultimately led to a significant mispricing of the cbETH collateral in Moonwell’s lending markets. Consequently, it is estimated that the financial impact ranged from $1.78 million to $2.68 million across 181 borrowers within just a few days.
A transparent dashboard has been implemented to track the 203 impacted wallets, ensuring that affected users can monitor updates regarding their compensation.
How was the third round of payments funded? The primary fund source for this compensation effort was around 310,301.6 USDC from the Moonwell treasury. This amount was converted into ETH for the distribution process. Additionally, approximately 19.9 ETH was recovered during the incident resolution, contributing to the third round of payments. Both funding sources were allocated proportionally among the affected wallets, ensuring that each wallet received an amount reflective of its individual losses. For this round, the finalized allocation was 147.12137 ETH, with 146.5562 ETH confirmed as disbursed by August 10, 2026.