Borrowing against Flare’s wrapped $XRP token has pushed a lending pool on Morpho close to capacity. Loans of @Ripple’s $RLUSD stablecoin against $FXRP, the @FlareNetworks version of $XRP, have reached $8.77M on @Morpho. Since opening on Ethereum in late July, the pool has lent out 94.5% of its $RLUSD, leaving only about $500K available to borrow.
Borrowing costs climb as the pool fills
Borrowers are paying about 16% to use the market, more than double last week’s average. That hands $RLUSD lenders a 15.3% yield. In Morpho-style lending markets, rates typically rise as more of the available supply is borrowed, which is consistent with the jump as the pool approaches full utilisation. The market has grown steadily since launch.
The pool is an isolated FXRP/$RLUSD market on Morpho Blue. CoinDesk reported that Flare’s wrapped $XRP was accepted as collateral by Sentora, which manages a $280 million $RLUSD lending pool. Each Morpho Blue market carries its own collateral asset, debt asset, oracle and liquidation threshold, so a failure in the FXRP market stays inside it rather than reaching the rest of the vault, according to the same report. Access is permissionless, with no whitelist required.