Liquidators recovered 4 million USDC and took possession of 4.18 million cbXRP through 883 distinct liquidation events on the Base network from Nov. 7 to Nov. 13. These actions occurred within the Morpho lending market, a platform where borrowers post cbXRP as collateral to secure USDC loans. A snapshot captured at 16:28:22 UTC on Nov. 13 showed the market still holding approximately 53.5 million USDC in outstanding debt, backed by 121.7 million cbXRP in collateral.
Weekly Liquidation Activity
The 883 events correspond to individual liquidation logs recorded by Morpho. Because a single borrower’s position can trigger multiple actions, the count reflects the number of logs rather than the number of unique individuals. An analysis of indexed transaction records covers the window from Nov. 7 at 10:30:51 UTC through Nov. 13 before 13:00 UTC. All 883 selected records reported zero bad debt, meaning the liquidation process successfully recovered the owed USDC without any loss to the protocol.
Daily repayment totals fluctuated significantly during the week. The highest single-day repayment total reached about 1.58 million USDC on Nov. 8. Nov. 10 followed with a second-largest daily total of approximately 1.06 million USDC. The earliest log in the dataset, from Nov. 7, recorded a smaller transaction involving 1,050 USDC repaid against 1,029 cbXRP seized. By Nov. 10, individual transactions had grown in scale. One decoded log from that day showed about 202,394 USDC repaid and 218,175 cbXRP seized. In that specific transaction, the liquidator transferred the seized cbXRP to another address and received USDC and wrapped ETH in return.
Market Exposure and Risk
The Morpho market on Base sets its liquidation threshold at a 62.5% loan-to-value ratio. Under the platform’s mechanism, a liquidator must repay the eligible debt to receive the collateral plus an incentive. An earlier estimate based on positions from Nov. 6 suggested that a 10% decline in the oracle price of XRP could have brought 8.84 million USDC of debt across 1,070 positions to liquidation eligibility.
Coinbase’s loan-health guidance states that repaying debt or adding collateral can improve a position’s health. However, the platform notes that optional automatic collateral protection depends on available assets and can fail during periods of volatility or technical problems. Establishing whether the seized cbXRP led to native XRP selling requires evidence linking the collateral to subsequent XRP trading, including redemption or custody movement. Such evidence is not provided in the liquidation logs themselves, which only record the repayment and seizure of assets within the Morpho protocol.
