★ Empty cToken-style market (zero supply/borrow)

Evidence summary #

Not a Compound V2 fork — taxonomy RD-F-070 is 'Compound-fork-only (N/A for non-Compound-fork protocols).' Morpho Blue uses original share-based accounting with VIRTUAL_SHARES=1e6 and VIRTUAL_ASSETS=1 in SharesMathLib — structural protection against first-depositor inflation. No cToken architecture. No critical flag fires.

Detail #

Morpho Blue is an original implementation confirmed by profile §5 (2,133 commits of original development; no mention of forking Compound). It does not use cToken architecture. However, Morpho Blue does use share-based accounting for supply positions — SharesMathLib (confirmed from GitHub source analysis via defihacklabs.substack.com deep-dive) uses VIRTUAL_SHARES=1e6 and VIRTUAL_ASSETS=1 in toSharesDown/toSharesUp conversion functions. This prevents first-depositor share inflation: when totalSupplyShares=0 (empty market), the conversion uses (assets * 1e6) / (totalAssets + 1), establishing a meaningful initial exchange rate. The virtual-share mechanism explicitly avoids ERC-4626 inflation attacks as noted in the SharesMathLib inline comments. Additionally, Morpho docs recommend a 'dead deposit' of 1e9 shares to 0xdead for new markets as an additional layer, though this is not protocol-enforced code. The Compound-fork-only classification in the taxonomy means this factor produces gray (not applicable) for Morpho Blue. No cToken-style empty-market vulnerability applies. The ERC-4626 sub-bucket (MetaMorpho vaults) is assessed under RD-F-074 and RD-F-075.

Sources #

Methodology #

Determine whether any listed Compound V2-fork market has `totalSupply == 0` and `totalBorrow == 0`, the precondition for a donation-exploit.

See the full factor methodology and distribution across all protocols →