Morpho liquidations seize 4.18M cbXRP as $53.5M debt remains

Morpho recorded 883 liquidation events in a Base lending market between 10:30:51 UTC on Nov. 7 and before 13:00 UTC on Nov. 13. Liquidators repaid more than $4 million in USDC and received about 4.18 million cbXRP, a token representing XRP on Base.

Borrowers deposited cbXRP as collateral for USDC loans. When a position becomes eligible for liquidation, an outside liquidator can repay some or all of its debt and receive part of the collateral plus an incentive.

The 883 events represent individual liquidation logs rather than unique borrowers. One borrower can therefore appear in more than one record. All 883 records reported zero bad debt, meaning the debt in those events was covered by collateral.

The largest daily repayment total was about $1.58 million in USDC on Nov. 8. The second-highest total was about $1.06 million on Nov. 10.

A decoded Nov. 10 transaction showed a liquidator repaying $202,394.36 in USDC and receiving 218,174.72 cbXRP. The cbXRP was then sent to another address, which provided USDC and wrapped ether in the same transaction. The records do not establish that the cbXRP was redeemed for native XRP or sold on the XRP market.

A separate Nov. 7 transaction recorded about $1,050 in USDC repaid against 1,029 cbXRP. The liquidation data does not identify the broader economic outcome for each borrower or trace the seized collateral into later trades.

The market’s liquidation threshold was a 62.5% loan-to-value ratio. A decline in the collateral’s value can push a loan above that limit unless the borrower repays debt or adds collateral.

At 16:28:22 UTC on Nov. 13, the market held about 121.7 million cbXRP against approximately $53.5 million in USDC debt. An earlier estimate based on Nov. 6 positions indicated that a further 10% decline in the oracle price could make $8.84 million of debt across 1,070 positions eligible for liquidation, assuming loan balances remained unchanged.