Moonwell has a $1.8M liquidity hole and its latest plan allocates $0 to fix it

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Decentralized lending protocol Moonwell has proposed no cbETH repayment in its latest reserve round, even as the Base market for Coinbase Wrapped Staked ETH carries a $1.77 million net shortfall.The allocation, published by risk service provider Anthias Labs on Aug. 24, would leave 2.8095 cbETH of listed reserves unused months after a February oracle error created the bad debt.Moonwell's live Base markets API showed the imbalance was still present at 11:28 UTC on Aug. 25. It reported $1.93 million supplied and $1.94 million borrowed, with negative $8,223.63 liquidity and 100.43% utilization in its cbETH market calculation.Infographic showing Moonwell cbETH reserves, borrowed liquidity, an $8,223 liquidity deficit, and the gap between bad-debt cleanup and supplier recovery.One non-liquidated supplier said a 1.05 cbETH position with no borrowing or liquidation history showed about 0.0000000001 cbETH available to withdraw. A second participant reported a similar problem on Aug. 25, although the two complaints cannot establish how many suppliers were affected.What the reserve plan says, and what it does not explainAnthias Labs said reserve repayments would stay within each mToken marke...

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