DeFi Markets Update 2026-02-03
Liquidations Overview, ACRDX now live, Farming on Monad
Welcome to another DeFi Markets Update—your no-nonsense briefing on the cryptobanking plumbing and market pulse.
Recent Liquidations Overview
This week BTC fell by around -15%, dropping from ~$89k to ~$75k, its lowest level in the past 12 months, triggering over $7bn in total CEX liquidations.
On Morpho, the largest liquidation activity was concentrated in cbBTC markets on Base, with over $52mil liquidated (1,500+ positions) 31 Jan alone.
Throughout the period, 0 bad debt was recorded across Steakhouse vaults.
BTC (cbBTC and WBTC) accounted for the majority of dollar-denominated liquidations, reaching $41M+. Most ETH-denominated liquidations came from wstETH on Ethereum.
Liquidators were rewarded with $2.7M in bonuses in a single day from cbBTC positions across Base and Ethereum (31st Jan). This week, approximately $5M in total bonuses were distributed to liquidators.
Despite the scale of liquidations, liquidity remained available across Morpho markets, and we didn’t observe any liquidity crunch.
ACRDX Goes Live on Morpho
ACRDX/USDC market is now live on Morpho, enabling users to borrow USDC against the Anemoy Tokenized Apollo Diversified Credit Fund, which provides exposure to a diversified portfolio of direct corporate loans and asset-backed debt.
Looping opportunities are currently attractive, with the underlying ACRDX collateral yielding an 8.2% APY, against a 5.8% USDC borrow rate, creating a positive 2.4% spread for delta-neutral leverage.
Liquidity in the market is currently being supplied by the Smokehouse USDC, Grove x Steakhouse USDC High Yield, and 3F x Steakhouse USDC V2 vaults, where Steakhouse curates exposure to this institutional-grade RWA collateral.
LTVs remain conservative due to the quarterly liquidity profile of the underlying Apollo fund, as redemptions are non-atomic and occur only within specific windows.
DeFi Farming on Monad
Yields on Monad continue to look attractive across both Prime and High Yield vaults. The Steakhouse High Yield AUSD vault is currently leading with 17.3% APY, driven by organic borrowing demand → 7d APY is 6%.
The Steakhouse High Yield USDC and Prime ETH vaults are both incentivised and around 7–8% APY.
In addition, AUSD borrowing markets are currently showing negative borrow rates, including wstETH/AUSD, WETH/AUSD and WBTC/AUSD. If all incentives are stripped down, each market has a borrow rate of circa 2%, which remains favourable for looping strategies.
