Morpho blames third-party AI tool for disputed X post on DeFi economics

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Morpho blames third-party AI tool for disputed X post on DeFi economics

Morpho CEO Paul Frambot said the post did not represent Morpho's official communication and apologized for the incident as the investigation continues.

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by Diego Almada Lopez

Morpho is investigating what triggered an unauthorized post about DeFi curator economics that was published on its official X account this week, according to CEO and co-founder Paul Frambot.

In a Sept. 26 statement on X, Frambot said the message came from a third-party AI marketing tool and was neither written nor published by Morpho. The project team removed the post shortly after it went live and revoked the third party’s access to the account.

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The now-deleted post said an analysis of 11 live distributor integrations showed that most curator businesses were not yet self-sustaining through vault fees alone. It cited one retail integration with 0% fees where the protocol allegedly funds a 7% target yield out of pocket.

Another example involved a 25% APY fee split 80/15/5 between an exchange, curator and middleware provider, with the curator receiving 15% of the overall fee.

The message argued that curator businesses rely on private distribution agreements, custom wrappers and protocol subsidies because base vault fees alone do not cover their costs.

Morpho is a permissionless, non-custodial lending protocol designed to separate lending infrastructure from risk management. The protocol is expanding toward an open credit network connecting onchain lenders and borrowers, including potential institutional and traditional-finance users.

In June, the Morpho Association announced a $175 million funding round co-led by Paradigm, a16z crypto and Ribbit Capital. Strategic participants included Apollo Funds, Circle Ventures, VanEck and other investors.  

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.
TECHNOLOGY
Morpho blames third-party AI tool for disputed X post on DeFi economics
Morpho blames third-party AI tool for disputed X post on DeFi economics

Morpho CEO Paul Frambot said the post did not represent Morpho's official communication and apologized for the incident as the investigation continues.

by Diego Almada Lopez

Share

Add us on Google

morpho logo bg

Morpho is investigating what triggered an unauthorized post about DeFi curator economics that was published on its official X account this week, according to CEO and co-founder Paul Frambot.

In a Sept. 26 statement on X, Frambot said the message came from a third-party AI marketing tool and was neither written nor published by Morpho. The project team removed the post shortly after it went live and revoked the third party’s access to the account.

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The now-deleted post said an analysis of 11 live distributor integrations showed that most curator businesses were not yet self-sustaining through vault fees alone. It cited one retail integration with 0% fees where the protocol allegedly funds a 7% target yield out of pocket.

Another example involved a 25% APY fee split 80/15/5 between an exchange, curator and middleware provider, with the curator receiving 15% of the overall fee.

The message argued that curator businesses rely on private distribution agreements, custom wrappers and protocol subsidies because base vault fees alone do not cover their costs.

Morpho is a permissionless, non-custodial lending protocol designed to separate lending infrastructure from risk management. The protocol is expanding toward an open credit network connecting onchain lenders and borrowers, including potential institutional and traditional-finance users.

In June, the Morpho Association announced a $175 million funding round co-led by Paradigm, a16z crypto and Ribbit Capital. Strategic participants included Apollo Funds, Circle Ventures, VanEck and other investors.  

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.