TREE NEWS reports: Blockaid reported that an attacker exploited an Ankr liquid staking token and E-mode to overborrow from More Markets, draining approximately $9.3 million in WFLOW from a lending reserve. The incident highlights ongoing vulnerabilities in DeFi protocols.
More Markets Lending Reserve Drained for $9.3M in Flash Loan Attack
This exploit underscores how composability risks in DeFi compound when lending protocols integrate liquid staking tokens and E-mode. The use of an Ankr LST as collateral to overborrow suggests that even audited risk parameters can be gamed under specific market conditions, which is a concern for protocols relying on similar collateral types. The affected parties are More Markets users and the broader lending ecosystem that shares risk models. The key question is whether this triggers tighter collateral risk assessments or shifts in how LSTs are priced and capped within lending protocols.
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