$MORPHO's liquidation engine got tested this week and it held. BitcoinWorld confirmed the reUSD market shakeout on Morpho wasn't an oracle error, it was a real 3% PT price drop on Pendle that tripped the liquidations. boring and correct, which is exactly what you want from lending infra.
the "oracle broke" headline is scarier than the truth. collateral repriced, liquidations fired, the system did its job. that's the point of the market existing.
price hasn't caught up to that story yet. MORPHO is up 22.87% on the week but down 4.8% today, still shaking off the confusion from the reUSD unwind.
$MORPHO's trading at $2.53 right now, off the 24h high of $2.72. if it holds the $2.47 low, i think this was just noise clearing and the weekly trend takes back over. if it loses $2.47, i'm wrong and there's no floor left to point to.
does a liquidation firing correctly scare you out, or make you trust the market more?
the "oracle broke" headline is scarier than the truth. collateral repriced, liquidations fired, the system did its job. that's the point of the market existing.
price hasn't caught up to that story yet. MORPHO is up 22.87% on the week but down 4.8% today, still shaking off the confusion from the reUSD unwind.
$MORPHO's trading at $2.53 right now, off the 24h high of $2.72. if it holds the $2.47 low, i think this was just noise clearing and the weekly trend takes back over. if it loses $2.47, i'm wrong and there's no floor left to point to.
does a liquidation firing correctly scare you out, or make you trust the market more?
