Morpho Blue’s AlphaUSDC Delta V2 vault faces $18M loss as msY token collapses

• Morpho Blue's AlphaUSDC Delta V2 vault experienced an $18 million loss due to the collapse of the msY token, trapping depositors with no liquidity.
• The vault's strategy was heavily concentrated in the msY/USDC market, leading to significant losses when msY's value dropped by up to 85%.
• The incident highlights risks associated with concentrated exposure, obscure tokens, and the importance of curator due diligence in permissionless DeFi.

Topics: Asset types, Integration with defi, Risk default, Stablecoins digital cash, Rwa collateral lending, Credit counterparty risk, Smart contract vulnerabilities

Tags: #morphoblue #alphapusdcdeltav2 #msytoken #mainstfinance #defi #stablecoin #liquiditycrisis #concentrationrisk #vaultcollapse #alphaping

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