November 08, 2026 – A fresh scan of Morpho’s Base market shows $8.4 million of USDC debt within a 10% XRP drop, while liquidations so far stay orderly and free of bad debt.
In Summary
About $8.4 million of USDC debt would face liquidation if XRP fell another 10%, a Catenaa scan shows.
Liquidators closed 384 loans on Nov. 6 and 7, repaying $1.6 million and seizing 1.53 million cbXRP.
The market has logged 3,713 liquidations since February without recording any bad debt.
Forced sales move wrapped cbXRP on Base, so native XRP feels them only if liquidators sell later.
XRP’s slide is testing cbXRP loans on Morpho, the lending protocol behind Coinbase’s crypto-backed borrowing. A Catenaa scan of the Base market at 02:21 UTC on Nov. 8 found $58.3 million of USDC debt. Borrowers had pledged 120.6 million cbXRP against it.
The pressure is real, but it is still contained. At the time of the scan, no loan sat past the liquidation line. However, 920 loans carrying $8.4 million would cross it if XRP fell another 10%.
How close are cbXRP loans to liquidation?
A loan becomes eligible for liquidation once its debt tops 62.5% of its collateral value. That line is the market’s liquidation loan-to-value, or LLTV. Morpho’s liquidation guide says any loan above that line becomes open to liquidators.
On average, borrowers sit at a 45% loan-to-value, which leaves a fair cushion. Still, the tail matters. About 1,177 loans worth $10.3 million already sit above 55%. At a 20% drop, the debt at risk climbs to $19.1 million, roughly a third of the book.
The trigger prices are easy to track. The market’s oracle priced cbXRP at $1.156 during the scan. A 10% drop puts it near $1.04, while a 20% drop takes it to about $0.93.
Liquidations picked up as XRP fell
XRP closed at $1.16 on Nov. 7, down 22% from $1.50 on Oct. 6, based on Kraken data. The selling reached the market fast. Liquidators closed 177 loans on Nov. 6 and 207 more on Nov. 7.
Together, those moves repaid about $1.6 million of USDC and seized 1.53 million cbXRP. Most of the Nov. 7 activity landed between 02:00 and 04:00 UTC, as XRP slipped toward $1.15. Since 13:24 UTC on Nov. 6, 19 separate addresses have run liquidations. The busiest one closed 67 loans, which suggests healthy competition among liquidators.
October was busier still. The market logged 1,132 liquidations that month and cleared $3.9 million of debt. That total beat June’s $3.2 million, the previous high.
Why native XRP has escaped the selling so far
cbXRP is Coinbase’s wrapped version of XRP on Base. So liquidations move cbXRP on Base, not XRP on the XRP Ledger. A liquidator who wants dollars must still sell or redeem the token. As a result, any spillover into native XRP depends on those later choices.
The scale also looks modest. This one market holds 78% of the 153.7 million cbXRP on Base, according to Basescan data. By contrast, the two-day seizure equals only about 1% of that supply.
What borrowers with cbXRP loans can do now
Morpho pays liquidators a bonus for taking the risk. Under its formula, a 62.5% LLTV market pays about 12.7%, by Catenaa’s math. That cost falls on the borrower, while the protocol itself takes no fee.
Coinbase’s loan health guide flags danger once a loan reaches 90% of its LLTV. Here, that means a 56.3% loan-to-value. Borrowers can then add collateral or repay part of the loan.
Lenders face a quieter squeeze. Depositors have supplied $66.3 million of USDC, and borrowers have taken $58.3 million. That leaves about $8.1 million free to withdraw. In return, suppliers earn 6.1% a year.
For holders of cbXRP loans, the system has worked as designed so far. The market has processed 3,713 liquidations since February without booking any bad debt. Coinbase’s Morpho rollout now covers several collateral types, including XRP. Even so, borrowers pay 7.0% a year, and 88% of the pool is already on loan. Another sharp drop in XRP would test that buffer again.
