Moonwell faces $1.8M liquidity shortfall, CryptoSlate says

A $1.77 million liquidity hole has emerged at decentralized lending protocol Moonwell, and there appears to be no clear way to resolve it, CryptoSlate reported. Citing Moonwell’s real-time data, the outlet said utilization in the platform’s cbETH trading pair, Coinbase’s staked ETH receipt token, stood at 100.43% and liquidity had turned negative, suggesting lending liquidity providers were effectively blocked from withdrawing funds. CryptoSlate added that a recently announced reserve repayment plan by the Moonwell team did not present a way to fill the $1.77 million shortfall, leaving some liquidity providers still unable to withdraw most of their deposits.