More Markets Exploit: $9.3M Drained From WFLOW Token

More Markets, a lending protocol developed by More Labs on the Flow EVM network, has suffered an exploit that drained 15.5 million WFLOW from its lending reserves. Blockaid identified 15.5 million WFLOW leaving the reserve, with the tokens valued at around $9.3 million. 

However, More Markets has not confirmed the amount lost, they say the investigation is ongoing.

How the More Markets Exploit Happened

According to Web3 security firm Blockaid, the attacker exploited the protocol’s handling of liquid staking tokens (LSTs) through its E-Mode system.

E-Mode allows users to borrow more against assets considered closely related in value. The attacker reportedly combined an Ankr bonded LST with E-Mode and exploited how More Markets calculated borrowing limits.

This allowed the attacker to take out loans against manipulated collateral and repeatedly withdraw WFLOW from the protocol’s mFlowWFLOW reserve.

Blockaid identified 15.5 million WFLOW leaving the lending reserve during the attack. 

$9.3M Drained as Funds Move From Flow EVM

Based on WFLOW’s market price, Blockaid estimated the financial impact at around $9.3 million.

On-chain activity also showed that the attacker began moving the stolen assets shortly after the exploit. Some funds were transferred toward external wallets and bridged away from the Flow EVM ecosystem.