Usual: Appropriate caps have been set for all Morpho markets

On January 12th, the RWA stablecoin project Usual announced that appropriate limits have been set for all Morpho markets and strongly advised users to migrate their positions to the new market as soon as possible. Rewards for the original market have been abolished, and liquidation and bad debt commitments have been restricted to the capped custody pool.

Usual stated that it has successfully protected lenders in the custody pool from the impact of bad debts, but does not recommend continuing to lend directly to that market. Additionally, Usual clarified that any custodians, including MEV Capital, were unaware of the execution of the floor price before the update on the chain.

In previous news, Usual released a statement yesterday regarding the USD0++ anchor off, stating that it is actively ensuring that there are no bad debt issues in the current lending market. All proceeds from liquidation will flow directly into the DAO treasury, ultimately benefiting USUAL holders.