Jack Paul 
Decentralized lending protocol Moonwell is facing a lingering liquidity gap on Base, and the latest reserve proposal does not include any cbETH repayment.
The allocation, published by risk service provider Anthias Labs on Aug. 24, would leave 2.8095 cbETH of listed reserves unused. The Base market for Coinbase Wrapped Staked ETH still carries a net shortfall of around $1.77 million. According to Moonwell’s live API, the imbalance remained in place on Aug. 25. The market showed $1.93 million supplied and $1.94 million borrowed, with negative liquidity of $8,223.63 and utilization at 100.43%.
What the reserve plan says
Anthias Labs said reserve repayments would stay within each mToken market. When reserves are insufficient, the plan would allocate them pro rata among eligible borrowers, omit actions at or below $1,000, and cap repayments at the lowest of reserves, available cash, or current borrower debt.
The cbETH row lists $1,768,665.13 of gross bad debt, a $1,768,664.86 net shortfall, and $7,360.83 of reserves. But the report does not say whether the $1,000 cutoff, available cash, or another consideration produced the $0 allocation.
The problem started in February
The shortfall traces back to a Feb. 15 oracle misconfiguration that priced cbETH near $1.12 instead of roughly $2,200. Anthias Labs said liquidators seized 1,096.317 cbETH and left the protocol with about $1.8 million in initial total bad debt.
A February recovery proposal later calculated about $2.7 million in net losses across roughly 181 borrowers liquidated between Feb. 14 and 18, and proposed treasury funding followed by protocol-revenue repayments.
What remains unclear
Two users have since reported problems. One non-liquidated supplier said a 1.05 cbETH position with no borrowing or liquidation history showed about 0.0000000001 cbETH available to withdraw. A second participant reported a similar problem on Aug. 25. Two complaints can’t establish how many suppliers are affected, but they point to the same unresolved question.
Moonwell’s own help material says withdrawals depend on available liquidity. The API reading and the two public complaints suggest that liquidity is still tight. Neither Moonwell nor Anthias Labs had responded in the public forum thread by about 11:30 UTC on Aug. 25.
The plan may still change. Reserve proposals often go through review before final execution. But as written, the latest round would put no money toward the cbETH hole. That leaves suppliers in a difficult spot, with a market that is technically over 100% utilized and a plan that doesn’t address it directly.