Commonal: Appropriate caps have been set for all Morpho markets
On January 12, the RWA stablecoin project Commonal announced that it has set appropriate caps for all Morpho markets and strongly recommends that users migrate their positions to the new market as soon as possible. Rewards in the original market have been abolished, and liquidation and bad debt commitments have been limited to capped vaults.
Fashial said it had successfully protected lenders in its vaults from bad debt, but did not recommend continuing to lend directly to the market. In addition, Fashial clarified that any custodians, including MEV Capital, were not aware of the reserve price execution until the on-chain update.
Previously, in response to the USD0 ++ de-anchoring, Commonal issued a document yesterday saying that it is actively ensuring that there are no bad debt problems in the current lending market. All liquidation proceeds will flow directly into the DAO treasury, ultimately benefiting USUAL holders.