Update
Morpho Loan Stress Test Reveals Potential USDC Debt Exposure
A Nov. 6 snapshot shows that a 10% decline in the collateral price would expose approximately $8.84 million of USDC debt in one Morpho lending market. The loans use Coinbase's XRP-backed cbXRP. Repayments or additional collateral can change the estimate. The snapshot covers 1,070 positions borrowing USDC against cbXRP, with a smaller 5% decline bringing about 3.23 million USDC of debt to or beyond the same boundary. This update highlights the potential risks for XRP holders who borrow against their tokens, as further price weakness can lead to liquidation.