Morpho Borrow Rates Spike to Around 40% Amid PT Market Liquidity Shortage
(3 hours ago) · 1 source · Summarized by CryptoBipto
Borrow rates on the Morpho lending protocol have surged to approximately 40% as liquidity in the principal token (PT) market has dried up. The spike reflects stress in decentralized finance lending markets tied to tokenized yield products. The situation highlights how liquidity constraints in one part of DeFi can cascade into sharply higher borrowing costs.
WHY IT MATTERS
In traditional finance, if you borrow money from a bank, the interest rate depends partly on how much money is available to lend.
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SOURCES
- thedefiant.io
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