Moonwell's latest plan allocates $0 for $1.8M cbETH debt

Moonwell's latest reserve plan allocates $0 to repay cbETH debt. The Base cbETH market has a $1.77 million net shortfall. Anthias Labs published the allocation on Aug. 24. The proposal would leave 2.8095 cbETH of listed reserves unused. Moonwell's Base markets API still showed the imbalance at 11:28 UTC on Aug. 25. The API showed $1.93 million supplied. It showed $1.94 million borrowed. Its cbETH calculation showed negative $8,223.63 liquidity. Its calculation showed 100.43% utilization. One supplier reported a 1.05 cbETH position with about 0.0000000001 cbETH available to withdraw. The supplier reported no borrowing or liquidation history for the position. A second participant reported a similar problem on Aug. 25. The complaints do not establish how many suppliers were affected. Anthias Labs said reserve repayments would stay within each mToken market. The plan would allocate insufficient reserves pro rata among eligible borrowers. The plan would omit actions at or below $1,000. The plan would cap repayments at the lowest of reserves, available cash, or current borrower debt. The cbETH row lists $1,768,665.13 in gross bad debt. It lists a $1,768,664.86 net shortfall. It lists $7,360.83 in reserves. The report does not explain whether the $1,000 cutoff, available cash, or another factor produced the $0 allocation. The shortfall traces back to a Feb. 15 oracle misconfiguration. The misconfiguration priced cbETH near $1.12 instead of roughly $2,200. Anthias Labs said liquidators seized 1,096.317 cbETH. Anthias Labs said the protocol incurred about $1.8 million in initial total bad debt. A later February recovery proposal calculated about $2.7 million in net losses. The proposal covered roughly 181 borrowers liquidated between Feb. 14 and 18. The proposal called for treasury funding followed by repayments from protocol revenue. Moonwell's help material says withdrawals depend on available liquidity. Moonwell and Anthias Labs had not responded in the public forum thread by about 11:30 UTC on Aug. 25.