XRP-backed loans face $8.84 million liquidation risk as prices drop 10%

Approximately $8.84 million in XRP-backed loans on the Morpho lending protocol could be liquidated if collateral values decline by an additional 10%. Analysts have identified over 1,000 leveraged positions at risk after a sharp sell-off in the XRP market pushed the token to an 11-week low near $1.18. Morpho, an onchain lending protocol enabling users to borrow stablecoins against crypto collateral, currently operates an XRP-backed market on Zksync’s Base network. Users in this market borrow the USDC stablecoin while pledging cbXRP, a Coinbase-wrapped version of XRP, as collateral. Recent analysis examined lending positions recorded around 13:24 UTC on November 6.

Source: CoinTurk News