Blockaid Reports $9.3M Drain from More Markets Lending Pool
Web3 security firm Blockaid reports that a malicious actor exploited More Markets by leveraging an Ankr liquid staking token combined with E-mode functionality to overborrow and extract approximately $9.3 million worth of WFLOW from a lending pool.
Web3 security platform Blockaid has reported that More Markets, a decentralized finance (DeFi) vault infrastructure protocol, experienced a lending reserve drain resulting in the loss of approximately $9.3 million worth of digital assets on Flow EVM.
According to blockchain data that Blockaid published in an X post on Monday, the malicious actor successfully extracted roughly 15.5 million Wrapped Flow (WFLOW) tokens from the mFlowWFLOW lending reserve, with Blockaid estimating the value at around $9.3 million.
The exploitation method involved the malicious actor utilizing Ankr Staked FLOW (ankrFLOW), which is a liquid staking token, in combination with E-mode to execute an overborrowing attack against the reserve, Blockaid reported.
Efficiency mode, commonly abbreviated as E-mode, represents a feature introduced in Aave V3 that enhances borrowing capacity for cryptocurrency assets whose valuations are anticipated to remain correlated, including liquid staking tokens paired with their corresponding underlying assets.
This security breach has elevated the aggregate losses from cryptocurrency exploits to $139.7 million throughout August, positioning it as the third-highest month measured by stolen value thus far in 2026. Nevertheless, this figure represents a substantial reduction compared to the $254 million that was stolen throughout July, based on data from DefiLlama.
Just one day prior on Sunday, the Cronos blockchain network implemented an emergency halt following reports of a $75 million security breach that targeted the DeFi lending protocol Tectonic.
As of the time this article was published, More Markets had not issued any public statement confirming the security incident or providing information about potential losses incurred by platform users. Cointelegraph attempted to contact Blockaid to obtain additional information but had not received any response prior to publication, and efforts to reach More Markets for commentary were unsuccessful.