An attacker leveraged an Ankr liquid staking token combined with E-mode to overborrow from the DeFi platform More Markets, resulting in the loss of approximately $9.3 million worth of WFLOW tokens from its lending reserve. This exploit was highlighted by Blockaid, according to CoinTelegraph.
The method involved manipulating the borrowing power on More Markets, allowing the attacker to drain a significant portion of the WFLOW token supply allocated to lending. This incident underscores ongoing risks associated with liquid staking tokens and advanced borrowing features in decentralized finance.
For Japanese investors, this event serves as a reminder to carefully assess the risks of emerging DeFi protocols and tokens, especially as local interest in crypto lending and liquid staking continues to grow.