| | In DeFi, decentralization often means no one is accountable when things go wrong. That's exactly what happened to "jameis" — a Morpho user who lost 14 ETH (~$33,000) after a Pyth oracle delay caused a faulty liquidation. Morpho, Pyth and Re7 Labs all deflected blame — leaving the yield seeker holding the bag. | | | EUL tests all-time high market cap range: | | While much of the "OTHERS" market (total market cap excluding the top 10) is down -50% off their post-election highs, Euler's EUL token is back to its all-time high market capitalization near $125m. It was set in March 2024, two years after its infamous March 2023 exploit. | Spurred by capital flowing into new deployments on Sonic and Berachain, Euler is setting a high standard for permissionless and composable lending. And impressively, it's doing so all without issuing a new token. | The latest development? Alchemix founder @scupytrooples said yesterday that v3 of the protocol would build on Euler. | — Macauley Peterson | | | Looking for a companion for your morning cup of coffee? Join Katherine Ross for the Empire newsletter — top crypto news and analysis delivered to your inbox weekdays at 8:45 am ET. Inform your day in crypto with Empire. | | | 'Caveat utilitor' — 'Let the user beware' | When a DeFi user loses 14 ETH (~$33,000) due to a faulty oracle update, who takes responsibility? If you ask Morpho, Pyth Network and Re7 Labs, the answer is: no one. | That's exactly what happened in early March when "jameis" — a user of an Re7 vault on Morpho — found their cbETH-backed loan liquidated due to a price feed delay between Pyth's cbETH/USD and ETH/USD feeds. While ETH's price kept updating, cbETH's remained frozen for nearly an hour. The result? A price ratio distortion that triggered liquidations, even though the cbETH/ETH ratio never actually diverged in reality. | The blame game begins | Faced with a $33,000 loss, jameis turned to the Morpho governance forum — where they go by "chicitybulls" — and Morpho's Discord to demand answers. But instead of a resolution, they found themself caught in a circle of decentralized responsibility-dodging: | To paraphrase: | Morpho's stance: We're oracle-agnostic. Vault curators (Re7) choose their own oracles. We just provide the infrastructure. Pyth's stance: Our prices were accurate. We're permissionless. Someone (Re7, or even the user) should have run an extra scheduler to update the feed. Re7 Labs' stance: Yeah, there was a timing mismatch…but that's just how push-based oracles work. We'll improve our setup next time.
| No one has claimed direct responsibility. No one has offered compensation. | The devil is in the details. This wasn't an exploit or price manipulation, but rather an architectural failure: | Pyth's push-based model meant price updates weren't automatically synchronized. Re7 Labs did not run an independent scheduler to ensure updates stayed in sync. Morpho, despite offering the vault listings, does not enforce reliability standards for oracle updates — leaving it up to the curator.
| The liquidation bot saw the distorted price, deemed the position underwater and executed the liquidation. That was it — game over for the user's 14 ETH. | $30,000 is a small sum in the grand scheme of DeFi, a minor tragedy that won't make the Rekt leaderboard. But the incident reflects a problem with much bigger ramifications: What happens when decentralized responsibility means no accountability? | We all know the adage code is law, but what is a yield farming minnow to do here? | Decentralization is often sold as a fix for TradFi's opacity and unfairness, but this case highlights its own set of flaws. In TradFi, if a brokerage incorrectly liquidates your position due to faulty data, you have legal recourse. In DeFi? You sometimes get forum replies about permissionless infrastructure. | It seems clear that Re7 Labs could have implemented safeguards, such as a timestamp verification to prevent liquidations based on stale data. Pyth could also improve its scheduling guarantees instead of shifting the burden onto integrators. Morpho still whitelists curators — though it says this will become permissionless — so it has a regulatory hand at which vaults get listed on its platform (or which curators get the boot). | Instead, all parties claim it's not their problem, and the user — who evidently did nothing unusual or unduly risky — is hung out to dry. | If DeFi is to scale beyond a niche of power user whales, risk curation has to come with some responsibility attached when users suffer unintended losses. Without accountability mechanisms — be it insurance, fund recovery processes or stricter oracle integration standards — events like this will keep happening. | For now, one thing is clear: "Jameis" lost 14 ETH, and none of the parties cares enough to make it right. | — Macauley Peterson | | | Blockworks is hiring a VP of sales! As our VP of sales, you'll be directly responsible for the day-to-day operations and leadership of our media and subscription sales teams. | Remote US | $200k Base & OTE $300k | Apply today if you are: | | | | |  | Sébastien Derivaux @SebVentures |  |
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"as it stands today, there is no reason you would use USDY and OUSG over BUIDL" - @qthomp
Neither of those products are BUIDL wrapper (one can check the daily attestations), but even if they were, they provide more utility.
I'm building with RWA in DeFi, so I kind of know. |  Quinn Thompson @qthomp
If I had to pick the most egregiously overvalued smoke and mirrors token in all of crypto that I suspect will result in the biggest losses to current holders, I would choose $ONDO. If this tweet spares even just one uneducated holder from the impending -99% loss, I will consider… x.com/i/web/status/1… |
| | | 1:50 PM • Mar 20, 2025 | | | | | | 4 Likes 0 Retweets | 1 Reply |
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|  | SB @swansonbenson0 | |
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That was just the teaser… boccaccio is flying to Mar a Lago as we speak for intimate 1on1 w Donald | | | 3:07 PM • Mar 20, 2025 | | | | | | 25 Likes 2 Retweets | 0 Replies |
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|  | Blockworks @Blockworks_ | |
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WATCH: The complete Presidential address at the Digital Asset Summit | |  | | | 3:05 PM • Mar 20, 2025 | | | | | | 1.6K Likes 429 Retweets | 139 Replies |
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|  | ZachXBT @zachxbt | |
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1/ An investigation into the alleged identity of the mysterious Hyperliquid whale tied to illicit activity that profited ~$20M via highly leveraged positions over the past couple weeks. | |    | | | 1:25 PM • Mar 20, 2025 | | | | | | 5.09K Likes 901 Retweets | 469 Replies |
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