LeadBlock's Morpho Blue Market
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 38 → 64. Problems weighed by who is responsible: incidents the subject suffered −6.4, concerns that are not fraud −3.2, problems around the subject, caused by others −1.6; legitimacy credit long-running +10; 1 section(s) set aside until a failed fact-check is resolved; fact-check adjustments (−10) now shown as page reliability, not in the score. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -3.2 |
| Incidents it suffered (e.g. hacks) | -6.4 |
| Problems around it, caused by others | -1.6 |
| Long-running | +10 |
| Sum | 64 |
- 1 section set aside: the claims did not hold up in a fact-check, pending correction.
Score: 64/100 (kept between 0 and 100)
How scoring works →Summary
LeadBlock's Morpho Blue Market refers to a permissionless lending market and associated MetaMorpho vault curated by LeadBlock Partners on the Morpho Blue protocol. On October 13, 2024, an oracle misconfiguration in the LeadBlock-curated PAXG/USDC market enabled an opportunistic user to borrow approximately $230,000 in USDC against only $350 of PAXG collateral, exploiting an overvalued asset price of $2.6 trillion per unit of gold. The incident was attributed to an incorrectly configured SCALE_FACTOR by LeadBlock's oracle provider and raised questions about the adequacy of pre-launch testing and risk curation practices.
Connected Entities
3 entities · 60 linked investigations- LeadBlock's Morpho Blue Market→mentioned with→BlockFi(60%)
- LeadBlock's Morpho Blue Market→mentioned with→ZachXBT(70%)
Connected Through
2 shared actors · 440 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □ZachXBTorganization
- ⌂BlockFiprotocol
Timeline(8 events)
2019
LeadBlock Partners founded in London by former Goldman Sachs employees David Chreng-Messembourg, Baptiste Cota, and Jean-Marc Puel, focusing on digital assets and blockchain venture capital.
November 2022
LeadBlock Partners closes Fund II at $150 million, backed by family offices, hedge fund managers, and financial institutions.
August 2024
Morpho raises $50 million in a private sale round led by Ribbit Capital; LeadBlock Bitpanda Ventures participates as a backer.
2024
LeadBlock Partners establishes role as risk curator on Morpho Blue, launching its USDC RWA MetaMorpho vault (0x4cA0E178c94f039d7F202E09d8d1a655Ed3fb6b6) in collaboration with Midas, allocating against mTBILL collateral.
13 October 2024
Oracle misconfiguration in the LeadBlock-curated PAXG/USDC market on Morpho Blue is exploited. An attacker deposits $350 of PAXG and borrows approximately $230,000 USDC by exploiting an inflated oracle price of $2.6 trillion per PAXG unit caused by a 12-decimal SCALE_FACTOR error. Attacker address: 0x02DBE46169fDf6555F2A125eEe3dce49703b13f5.
15 October 2024
LeadBlock publishes a retrospective on the Morpho governance forum acknowledging the oracle misconfiguration, stating the error was introduced by an oracle provider, claiming all borrowed funds were repaid, and disclosing new internal testing processes for future market creation.
18 October 2024
Multiple DeFi security firms — including QuillAudits, SolidityScan, and Verichains — publish technical post-mortems on the exploit, detailing on-chain transactions and the decimal mismatch root cause.
14 October 2024
Morpho Labs posts on X (formerly Twitter) distinguishing the risk curation failure from any underlying protocol vulnerability; Morpho subsequently introduces opt-in risk warnings on its interface for flagged markets.
Decision Log
- slot 455363899 · hash 6idFdHQjzKMPVjZe3u7bck5Y47v6DyFopLGXw9yqN2ec
- slot 445506217 · hash 6PKwN7raQ9pV8hF2ipyeBncz7ybsuwHwkYQvUH7fqvxW
- slot 423927830 · hash ECrkQrz1GF7kEFbfZrU1G2QdNP78a5Qq4BkZWuwfFw22
- slot 423927827 · hash DaQicAwCzSEa8taX6CRR4GzWsAXyydjyJ5zszYrnYZGk
- slot 422977539 · hash B8spqMZe1RoFukSKFfSpFiBb5TooFaocEGtAY5X4aZuW
This investigation is cryptographically anchored to the Solana blockchain (5 decisions). 12 of 17 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:28 AM
last updated: 10/10/2026, 6:44:15 PM
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