Morpho Borrow Rates Hit Roughly 40% as PT Market Liquidity Dries Up

Morpho borrow rates spiked to roughly 40% as available liquidity in one reUSD-backed market vanished within two hours. By Oct. 31, rates across four tracked markets had eased to approximately 9%–13%. The rapid rate swing highlights the fragility of liquidity in the protocol's PT markets, where thin order books can trigger sharp borrowing cost moves.