Moonwell's Base market for cbETH is carrying a net shortfall of $1.77 million, and the latest reserve plan from Anthias Labs doesn't cover it. The proposal, dated Aug. 24, allocates zero dollars to cbETH repayment, even though the market's own report shows more than $1.76 million in gross bad debt and a net shortfall of $1,768,664.86.
That leaves suppliers in a bind. Two have reported being unable to withdraw full cbETH positions, with one seeing only 0.0000000001 cbETH available to withdraw. The live API for the market shows $1.93 million supplied, $1.94 million borrowed, negative liquidity of -$8,223.63, and utilization at 100.43%.
Why the Reserve Plan Gives cbETH Nothing
Anthias Labs filed the reserve plan on Aug. 24. The cbETH row lists $1,768,665.13 in gross bad debt, a $1,768,664.86 net shortfall, and $7,360.83 in reserves. The plan allocates $0 to cbETH repayment and would leave 2.8095 cbETH of listed reserves unused. The report doesn't explain why the allocation is zero.
That's a notable gap. The shortfall is essentially the entire cbETH debt load on the market, yet the plan doesn't set aside anything to chip away at it.
The Oracle Misconfiguration Behind the Bad Debt
The bad debt originated from an oracle misconfiguration on Feb. 15. The price feed for cbETH was set near $1.12 instead of its actual price of roughly $2,200. That error triggered liquidations totaling 1,096.317 cbETH, leaving about $1.8 million in initial bad debt.
A February recovery proposal estimated net losses around $2.7 million across roughly 181 borrowers who were liquidated between Feb. 14 and 18. That proposal suggested treasury funding followed by protocol-revenue repayments. But the Aug. 24 reserve plan doesn't follow that route for cbETH.
What the Shortfall Means for Suppliers
With utilization at 100.43%, there's no room for withdrawals. The market owes more than it has in reserves, and the plan doesn't change that. One supplier's experience shows it: they could only see 0.0000000001 cbETH available to withdraw.
The shortfall isn't just a number on a dashboard. It's a real barrier for anyone who wants to pull their cbETH out of the Base market.
No Public Response Yet
As of 11:30 UTC on Aug. 25, Moonwell and Anthias Labs had not responded in the public forum thread where the reserve plan was posted. That leaves suppliers without an explanation for the zero allocation or a timeline for any cbETH repayment.
The next step is up to those behind the plan. Will they adjust the allocation, or will a different proposal come forward to address the $1.77 million hole? The market is still open, but the shortfall isn't going away on its own.
