Morpho borrow rates hit roughly 40% as reUSD market liquidity vanishes
Borrow rates on Morpho spiked to roughly 40% as liquidity in a reUSD-backed market dried up, with available liquidity vanishing within two hours. By Oct. 31, rates across four tracked markets had eased to roughly 9%-13%. The squeeze highlights liquidity fragility in lending markets and could pressure borrowers and the protocol's usage.