XRP loans trigger 883 liquidations; $53M of USDC debt remains on Base

883 liquidation records cleared Morpho's cbXRP lending market on Base, and the debt still standing measured roughly $53.5 million in $USDC at a 16:28:22 UTC state snapshot on Nov. 13, against 121.7 million cbXRP of collateral.

The liquidations run on a simple mechanic. The market's liquidation threshold is a 62.5% loan-to-value ratio, which compares the debt with the collateral's value; falling collateral prices can push the same loan above the permitted ratio and make it eligible for liquidation. Under Morpho's mechanism, an outside liquidator repays some or all of an eligible position's debt and receives collateral plus an incentive. Here that means paying $USDC and taking cbXRP. Collateral leaves the position while the debt obligation shrinks, and the records alone do not fully capture each borrower's economic outcome.

How much was repaid, and on which days?

• Nov. 7: about 1,050 $USDC repaid against 1,029 cbXRP seized in a single decoded log
• Nov. 8: about 1.58 million $USDC repaid, the largest daily repayment total in the selected window
• Nov. 10: about 1.06 million $USDC repaid; one decoded transaction shows 202,394 $USDC repaid and 218,175 cbXRP seized in the same market
• Nov. 13: 53.53 million $USDC still outstanding

All 883 selected liquidation records reported zero bad debt, meaning no debt was left uncovered by collateral.

What does the remaining $53 million mean for borrowers?

A Nov. 6 stress estimate built on positions as they stood then projected that a further 10% decline in oracle prices would bring 8.84 million $USDC of debt across 1,070 positions to liquidation eligibility, assuming balances stayed unchanged. That projection sits against the Nov. 13 snapshot showing 53.53 million $USDC still outstanding in the Base market.

Coinbase's loan-health guidance sets out two remedies for a borrower under pressure: repaying debt or adding collateral, either of which improves a position's health. The same guidance notes that optional automatic collateral protection depends on available assets and can fail during volatility or technical problems. That gap between a borrower's buffer and the protocol's automated backstop is what separates orderly deleveraging from forced liquidation.

Did the seized collateral become native $XRP selling?

Not on the records examined. In the Nov. 10 transaction, the liquidator sent the 218,175 cbXRP it had seized to another address and received $USDC and wrapped ETH from that address in the same transaction. The flow runs in a circle, so the decoded log does not by itself prove a sale of the underlying asset or a borrower's real economic outcome.

Establishing native $XRP selling would require evidence linking the seized collateral to subsequent $XRP trading, including any redemption or custody movement along the way. Absent that trail, the seized cbXRP could as easily have been recycled straight back into the same lending market as the source of repayment.

What happens next

For the roughly $53.5 million of $USDC still outstanding, the next consequences depend on each borrower's own collateral buffer, repayments and top-ups rather than on any single protocol switch. For $XRP holders assessing selling pressure, the next evidence is the destination and use of the seized cbXRP, followed by any traceable redemption or native $XRP trade — and if none appears, the collateral may simply have been re-pledged against new $USDC debt.