Liquidators on Morpho's Base lending market seized 4.18 million cbXRP across 883 liquidation events between November 7 and 13, repaying approximately $4 million in USDC debt. As of November 13, the market carried $53.5 million in outstanding USDC debt against $121.7 million in cbXRP collateral.
The liquidations occurred in a lending market where borrowers pledge cbXRP to borrow USDC. The market's liquidation threshold is set at 62.5% loan-to-value, meaning falling collateral prices can push borrowers above the permitted debt-to-collateral ratio and trigger liquidation events.
Liquidation Mechanics
Under Morpho's liquidation mechanism, external liquidators can repay part or all of an eligible position's debt in exchange for collateral plus a liquidation incentive. In this case, liquidators paid USDC to receive cbXRP. The largest daily repayment occurred on November 8 with approximately $1.58 million USDC repaid, followed by roughly $1.06 million on November 10. All 883 liquidation records reported zero bad debt.
One November 10 transaction showed a liquidator repaying $202,394 USDC and seizing 218,175 cbXRP from a single position. The seized cbXRP was subsequently transferred to another address in the same transaction.
Remaining Risk
An earlier analysis estimated that a further 10% decline in oracle prices could potentially bring $8.84 million in debt across 1,070 positions to liquidation eligibility, assuming borrower balances remained unchanged. The next consequences for remaining borrowers depend on their collateral buffers, debt repayments, and additional collateral deposits.
