XRP loans trigger 883 liquidations, and $53M remains at risk
Borrowers surrendered 4.18 million cbXRP on Base, while the records leave a native XRP selling link unproven. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
XRP-backed borrowers surrendered about 4.18 million cbXRP in 883 liquidation events on Morpho, as 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. The 883 events count individual liquidation logs, so one person can be represented more than once.
A later snapshot on Nov. 13 still showed 53.53 million USDC outstanding.
An earlier loan-stress coverage used Nov. 6 positions to estimate that a further 10% oracle-price decline could bring 8.84 million USDC of debt across 1,070 positions to liquidation eligibility, assuming balances stayed unchanged.
The market's liquidation threshold is 62.5% loan-to-value, which compares the debt with the collateral's value: falling collateral prices can push the same loan above the permitted ratio.
Under Morpho's liquidation 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.
Collateral leaves the position while the debt obligation shrinks, and the records alone do not fully capture each borrower's economic outcome.
The largest daily repayment total in the selected window was about 1.58 million USDC on Nov. 8, followed by about 1.06 million on Nov. 10. All 883 selected liquidation records reported zero bad debt, the debt left uncovered by collateral.
Related ReadingThe decoded liquidation log for a Nov. 10 transaction shows about 202,394 USDC repaid, and 218,175 cbXRP seized in the same market.
The liquidator then sent that cbXRP amount to another address and received USDC and wrapped ETH from that address in the same transaction. A separate Nov. 7 log records about 1,050 USDC repaid against 1,029 cbXRP seized.
Establishing native XRP selling would require evidence linking the seized collateral to subsequent XRP trading, including any redemption or custody movement along the way.