TechFlow reports, on October 14, Omer, founder of Chaos Labs, posted on social media that Morpho's PAXG/USDC market lost approximately $230,000 due to an oracle configuration error. The issue stemmed from Morpho's Oracle SCALE_FACTOR not correctly accounting for the precision difference between USDC (6 decimals) and PAXG (18 decimals), resulting in a 12-decimal inflation of the PAXG price. Additionally, security monitoring may have referenced only the raw price, overlooking the calculated oracle price. Ultimately, an attacker deposited $350 worth of PAXG and successfully borrowed $230,000 worth of USDC.
Add to Favorites
Share to Social Media
