Moonwell’s latest reserve plan skips cbETH repayment entirely. The Base market for Coinbase Wrapped Staked ETH still carries about $1.77 million in net bad debt, and the new allocation does not touch it.
The plan was published by risk service provider Anthias Labs on Aug. 24. It leaves 2.8095 cbETH of listed reserves unused. That is notable because the bad debt comes from a Feb. 15 oracle error, not from normal market activity.
What the reserve plan says
Anthias Labs said reserve repayments would stay within each mToken market. When reserves are insufficient, the plan would distribute them pro rata among eligible borrowers. It would skip actions at or below $1,000 and cap repayments at the lowest of reserves, available cash, or current borrower debt.
For cbETH, the report lists gross bad debt of $1,768,665.13, a net shortfall of $1,768,664.86, and reserves of $7,360.83. Yet the allocation for cbETH is $0. The report does not explain whether the $1,000 cutoff, available cash, or some other factor produced that result.
Liquidity still looks tight
Moonwell’s live Base markets API still showed the imbalance at 11:28 UTC on Aug. 25. It reported about $1.93 million supplied and $1.94 million borrowed, with negative $8,223.63 in available liquidity and 100.43% utilization for cbETH.
Two suppliers have also reported problems. One said a 1.05 cbETH position with no borrowing or liquidation history showed nearly zero cbETH available to withdraw. Another reported a similar issue on Aug. 25. Two public complaints are not enough to show how many suppliers are affected, but they match the API data.
Where the debt came from
The shortfall traces back to a Feb. 15 oracle misconfiguration. cbETH was priced near $1.12 instead of roughly $2,200. Liquidators seized 1,096.317 cbETH and left the protocol with about $1.8 million in initial bad debt.
A February recovery proposal later estimated about $2.7 million in net losses across roughly 181 borrowers liquidated between Feb. 14 and 18. That plan called for treasury funding followed by repayments from protocol revenue.
For now, the new reserve round does not move the cbETH position forward. Moonwell’s help material says withdrawals depend on available liquidity, and the API reading plus the public complaints point to an unresolved liquidity question.
Moonwell and Anthias Labs had not responded in the public forum thread by about 11:30 UTC on Aug. 25.
