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Oct 29, 2026

Morpho borrow rates spike to 40% as reUSD-backed market liquidity evaporates

Borrow rates on Morpho surged to roughly 40% after available liquidity in a reUSD-backed market vanished within two hours. Rates subsequently eased to approximately 9-13% across four tracked markets by October 31.

Oct 29, 2026·3 sources
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Top claims

  • ▪Morpho bucked the sector downturn by generating $62 million in user-paid fees in Q3 2026, ranking second among all lending protocols.
  • ▪Morpho borrow rates spiked to approximately 40% after liquidity in a reUSD-backed lending market vanished on October 31, 2026.
  • ▪New Market Trading CEO Frank Hepworth stated that bitcoin lending yields of 1% to 4% fail to justify derivative, counterparty, and smart contract risks.

Topics

Vaults & yieldCrypto risk managementDeFiDeFi lendingStablecoinsLending & borrowing