Sentora’s Morpho Vaults See Sharp Outflows Amid MetaMask Staking Incident

Assets in Sentora’s $RLUSD and PayPal USD lending vaults on Morpho fell sharply on Sept. 30, leaving thin liquidity buffers as MetaMask responded to a security incident affecting its staking infrastructure.

Morpho’s $RLUSD vault history shows assets falling from about 426.4 million $RLUSD at 6 p.m. ET to 350.4 million at 10 p.m. Its PayPal USD vault history shows a decline from 408.9 million $PYUSD to 349.3 million over the same period.

In subsequent live snapshots retrieved around 11:11 p.m. ET, Morpho reported $349.27 million in total assets and $8.46 million in available liquidity for the $RLUSD vault. The $PYUSD vault held $347.58 million in assets, with $2.38 million available. The smaller buffers leave depositors less immediately accessible cash while most vault assets remain allocated.

An Ethereum transaction at 7:45 p.m. ET shows the $RLUSD vault receiving 9.09 million $RLUSD back from Morpho through its lending adapter. Those funds returned to the vault itself—a movement distinct from a depositor redeeming vault shares and taking money out.

Sentora describes the $RLUSD vault as lending against collateral including Bitcoin wrappers, staked $ETH and yield-bearing stablecoin derivatives. The stablecoin is the asset lent; staked $ETH is collateral supporting the loan.

Validator Exits Add Uncertainty

The withdrawals overlapped with MetaMask’s disclosure of an infrastructure security incident. MetaMask said it was proactively exiting affected validators in its non-custodial staking operations and had identified “no immediate threat to MetaMask wallets.”

The Defiant previously reported that MetaMask Staking had begun exiting validators it operates within Lido. Lido said holders of its stETH token did not need to act, but warned of foregone staking rewards and possible downtime penalties.

The timing does not establish that the security incident caused the vault withdrawals. Morpho’s hourly histories already show substantial asset declines by 7 p.m. ET, before MetaMask’s 7:38 p.m. public post.

MetaMask said it does not manage clients’ staking withdrawal keys and would provide further updates as appropriate.