Moonwell: Submitted recovery plan on governance forum and initiated partial compensation

CycleProphet · 2026-02-19T04:05:32+00:00

Due to an oracle configuration error, the DeFi lending protocol Moonwell incurred approximately $1.78 million in bad debt. It has announced a recovery plan involving integrating the MFAM community into the WELL ecosystem, initiating partial compensation, and continuing to provide compensation through protocol revenue. MFAM holders and stkWELL stakers will receive compensation at a ratio of 1:1.5.

CycleProphet

2026-02-19 04:05:32

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Deep Tide TechFlow News, February 19 — After a bad debt of approximately $1.78 million caused by an oracle configuration error, the DeFi lending protocol Moonwell released an incident response update on the X platform. It states that the recovery plan has now been published on the governance forum, which includes integrating the Moonwell Apollo (MFAM) community into the Moonwell ecosystem (WELL). The Moonwell Apollo Treasury will immediately initiate partial compensation, with ongoing compensation to be provided through protocol revenue. Additionally, MFAM holders and stkWELL stakers are expected to receive compensation at a ratio of 1:1.5 (MFAM:stkWELL).

WELL5,22%

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