Morpho Blue on Base · exit depth · snapshot
21 of 47 Morpho markets on Base clear a $1M liquidation; 19 break at some size, 1 clears only with RFQ quotes, 5 have no route and 1 was not fully measured
Underkeel measures whether each Morpho Blue market on Base can still be liquidated at size. Every 6 hours it prices selling the seized collateral at $25k, $200k and $1M and compares the cost with the liquidation bonus, in all 47 markets with at least $100k borrowed.
The 21 markets that clear every size hold $1.67B, 77% of the $2.18B borrowed. The 19 markets that break hold $407M; the largest is USDe/USDC 91.5% with $340M borrowed: a $200k liquidation clears, selling $1M of USDe costs 37.7% against a 2.6% bonus. Positions that large are liquidated in parts across blocks; the site measures one liquidation in one transaction. 5 markets with $93.9M have no DEX route and are shown separately.
- Bonus
- What a liquidator earns on top of the debt it repays, fixed by the market's LLTV (liquidation loan-to-value).
- Exit cost
- The share lost selling the seized collateral into the loan token on the best KyberSwap route, at $25k, $200k and $1M.
- Clearance
- Bonus minus exit cost, in percentage points (pp). Below zero, a single liquidation of that size loses money.
Every term, with examples: glossary.
Figure 1
Where the exit breaks
Source: KyberSwap Aggregator API, Morpho API · snapshot 2026-11-14 21:23 UTC
The 12 largest of 25 markets: 19 that lose money at some measured size, 1 that clears only with RFQ quotes and 5 with no DEX route, by borrowed amount. Horizontal position is the exit cost divided by the market's own bonus, on a log scale from 1% to 100 times. Right of the line a single liquidation of that size loses money. "Clears to" is the clearing size: the largest measured size with positive clearance ("+": larger sizes are not measured). All 47 markets in one table.
The bonus
A higher LLTV leaves less room
Morpho fixes the bonus by the market's LLTV:
A 62.5% LLTV pays 12.7%; a 94.5% LLTV pays 1.7%. The exit cost has to stay below that for a single liquidation to pay. Definitions.
Figure 2
Source: Morpho Blue's liquidation incentive formula, market LLTVs from the Morpho API · snapshot 2026-11-14 21:23 UTC
Status
47 markets, one rule
A market clears a size while selling its collateral costs less than the bonus. The status names the first size where that stops. One tile per market, by its first status.
21 clear all sizes
6 RFQ-only
14 loss
5 no route
1 not measured
- clears all sizes21 markets, $1.67B borrowed. Exit cost below the bonus at every measured size: positive clearance throughout.
- RFQ-only6 markets, $13.1M borrowed. First break on quotes: under the bonus only while off-chain RFQ market makers quote; on-chain pools alone cost the bonus or more. 5 of them also lose at a larger size.
- loss14 markets, $400M borrowed. Lose money from the size shown: a single liquidation of that size has to be split across blocks. With the 5 RFQ-only markets that also lose at a larger size: 19.
- no DEX route5 markets, $93.9M borrowed. No aggregator route into the loan token at any size. The collateral may still be redeemable with its issuer; the site does not measure that.
- not measured1 market, $122k borrowed. The quote failed in this snapshot or the token has no price, at every size or at some. Not the same as no route.
Last 30 days: 12,454 liquidations on Morpho Blue, Base, paid $6.2M of bonus; 93% of it went through Chainlink SVR (Smart Value Recapture) auctions. Liquidations.
Cite as: Underkeel, Clearance v2, Morpho Blue markets on Base, snapshot 2026-11-14T21:23Z, data sha256 81b87af3. https://underkeel.xyz/