Morpho Vaults Suffer Sharp Outflows Amid MetaMask Security Incident

Sentora's Morpho Vaults Experiencing Unprecedented Outflows

The $RLUSD and PayPal USD lending vaults on Morpho saw a sharp decline in assets on September 30, with available liquidity buffers thinning out. According to Morpho's hourly histories, the $RLUSD vault dropped from approximately 426.4 million $RLUSD at 6 p.m. ET to 350.4 million by 10 p.m., while the PayPal USD vault fell from 408.9 million $PYUSD to 349.3 million over the same period.

A live snapshot taken around 11:11 p.m. ET revealed that the $RLUSD vault held $349.27 million in assets, with only $8.46 million available for immediate withdrawal. The PayPal USD vault, meanwhile, had $347.58 million in assets and $2.38 million in liquidity.

The timing of these withdrawals coincided with MetaMask's disclosure of an infrastructure security incident affecting its non-custodial staking operations. Although MetaMask stated that there was 'no immediate threat to MetaMask wallets,' the situation has added uncertainty for users holding assets in Sentora's Morpho Vaults.