XRP-backed Morpho loans see 883 liquidations as $53.5M in debt remains

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XRP-backed Morpho loans see 883 liquidations as $53.5M in debt remains

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XRP-backed borrowers on Morpho's Base market surrendered about 4.18 million cbXRP across 883 liquidation events between Nov. 7 and Nov. 13. About 53.5 million USDC of debt remains outstanding, and the records do not show whether any native XRP was sold.

XRP-backed borrowers surrendered about 4.18 million cbXRP in 883 liquidation events on Morpho, while liquidators repaid just over 4 million USDC of debt. The activity took place in a lending market on Base where borrowers pledge cbXRP to borrow USDC.

CryptoSlate's analysis of Morpho's indexed transaction records covers Nov. 7 at 10:30:51 UTC through Nov. 13 before 13:00 UTC. However, the 883 events count individual liquidation logs, so one person can appear more than once.

How the liquidations worked

The market's liquidation threshold is 62.5% loan-to-value, a ratio that compares the debt with the collateral's value. Falling collateral prices can push the same loan above the permitted ratio.

Under Morpho's mechanism, an outside liquidator can repay some or all of an eligible position's debt and receive collateral plus an incentive. Here, that means paying USDC and taking cbXRP.

The largest daily repayment total in the window was about 1.58 million USDC on Nov. 8, followed by about 1.06 million on Nov. 10. All 883 selected records reported zero bad debt.

A Nov. 10 transaction leaves native XRP selling unproven

One Nov. 10 transaction shows about 202,394 USDC repaid and 218,175 cbXRP seized. The liquidator then sent that cbXRP to another address and received USDC and wrapped ETH in the same transaction.

Even so, the selling link to native XRP remains unproven. Establishing it would require evidence linking the seized collateral to later XRP trading, including any redemption or custody movement along the way.

Debt remains in the market

At the API's 16:28:22 UTC state timestamp on Nov. 13, the market still carried approximately 53.5 million USDC of debt against 121.7 million cbXRP of collateral. What happens to remaining borrowers depends on their own collateral buffers, repayments, and top-ups.

Source: CryptoSlate

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