Morpho loan stress exposes cbXRP, but spares native XRP
A snapshot of a Morpho lending market on Base found that a 10% decline in cbXRP’s price would make positions with about 8.84 million USDC of debt eligible for liquidation; a 5% decline would affect about 3.23 million USDC. The market held roughly 59.2 million USDC in total debt against 119.9 million cbXRP, with a 62.5% liquidation loan-to-value threshold. Borrowers can reduce risk by repaying debt or adding collateral, while optional automatic protection may add collateral if enabled and funded. The estimates assume positions remain unchanged: repayments and collateral additions were already observed around the snapshot, and actual liquidations depend on subsequent borrower and liquidator actions. Liquidations exchange USDC debt repayment for cbXRP collateral; any resulting XRP sales would require separate evidence.
