The risk with cbXRP isn’t XRP itself, but its use as collateral to borrow USDC on Morpho. In the November 6 snapshot, a further 10% drop in collateral prices would bring about $8.84 million in debt across 1,070 positions to the liquidation threshold, assuming debt and collateral amounts remain unchanged. That’s how the 62.5% liquidation threshold draws closer: with the same debt, the ratio rises as collateral prices fall.
Native XRP isn’t on this list of collateral, so the initial pressure falls on leveraged borrowers; the snapshot doesn’t mean liquidations have already occurred, and repayments or additional collateral would change the outcome.
Native XRP isn’t on this list of collateral, so the initial pressure falls on leveraged borrowers; the snapshot doesn’t mean liquidations have already occurred, and repayments or additional collateral would change the outcome.