More Markets Protocol Exploited on Flow EVM: $300,000 Drained

Security monitoring firms have reported a significant exploit targeting More Markets, a lending protocol operating under the More Labs umbrella. The incident occurred on the Flow EVM network, resulting in the unauthorized withdrawal of substantial liquidity from the platform's reserves. Preliminary data suggests that the attackers successfully siphoned off funds valued at approximately $300,000, marking another security breach within the decentralized finance (DeFi) ecosystem.

Exploitation of LST and E-mode Mechanisms

According to technical analysis provided by the security firm Blockaid, the perpetrator utilized a sophisticated method to manipulate the protocol's internal logic. The attack focused on the integration of Ankr-bound Liquid Staking Tokens (LSTs) and the protocol's Efficiency Mode (E-mode), a feature typically designed to allow high-leverage borrowing against highly correlated assets. By exploiting these specific components, the attacker was able to artificially drain the WFLOW lending liquidity pool, bypassing standard risk parameters.

• Target Asset: Wrapped Flow (WFLOW)
• Total Volume Lost: Approximately 15.5 million WFLOW
• Estimated Value: $0.3 million USD
• Blockchain Network: Flow EVM

Impact on More Labs Ecosystem

The breach specifically targeted the lending reserves, where 15.5 million WFLOW were transferred out of the smart contract's control. The use of LSTs as collateral in DeFi protocols often introduces unique oracle or logic risks if the price feed or redemption mechanisms are not strictly isolated. This incident highlights the ongoing vulnerabilities associated with complex cross-asset interactions on emerging EVM-compatible chains. More Labs has not yet released a formal recovery plan for the affected liquidity providers as of the current reporting period.

The More Markets exploit serves as a reminder of the inherent risks in DeFi lending architectures, particularly those utilizing advanced leverage features like E-mode. As the Flow EVM ecosystem continues to expand, security researchers emphasize the necessity of rigorous audits for protocols handling Liquid Staking Tokens. Investors and participants in the More Labs ecosystem are advised to monitor official channels for updates regarding the status of the remaining lending pools and potential security patches.