diff --git a/protocol/app/app.go b/protocol/app/app.go
index bc65e1633a..20fd36d602 100644
--- a/protocol/app/app.go
+++ b/protocol/app/app.go
@@ -1541,7 +1541,15 @@ func (app *App) initOracle(pricesTxDecoder process.UpdateMarketPriceTxDecoder) {
 			compression.NewDefaultVoteExtensionCodec(),
 			compression.NewZLibCompressor(),
 		),
-		app.PreBlocker,
+		// We are not using the slinky PreBlocker, so there is no need to pass in PreBlocker here for
+		// VE handler to work properly.
+		// Currently the clob PreBlocker assumes that it will only be called during the normal ABCI
+		// PreBlocker step. Passing in the app PreBlocker here will break that assumption by causing
+		// the clob PreBlocker to be called unexpectedly. This to leads improperly initialized clob state
+		// which results in the next block being committed incorrectly.
+		func(_ sdk.Context, _ *abci.RequestFinalizeBlock) (*sdk.ResponsePreBlock, error) {
+			return nil, nil
+		},
 		app.oracleMetrics,
 	)