Morpho CEO says rsETH exposure in ETH lending capped at about $1 million

Morpho cofounder and CEO Paul Frambot said in a post on April 19 (UTC+8) that Morpho's smart contracts remain secure and the protocol is operating normally. He said that out of thousands of isolated markets, only two markets tied to rsETH collateral and lending were impacted, with total exposure of roughly $1 million in ETH. Of more than 500 Morpho Vaults, only two had exposure to those markets. Frambot added that Morpho's fully isolated market design has kept all other Vaults unaffected, though he noted potential knock-on effects from broader ecosystem exposure cannot be ruled out. Morpho has also proactively paused the OFT cross-chain bridge for the MORPHO token on Arbitrum while it investigates the root cause of the rsETH incident. (Source: Foresight News)