
The real test comes when the AVLT/USDC market on Morpho chews through the $4M and borrow rates spike Watch the 80% loop headline compress like COMP yield loops in 2020 and the Aave stETH carry in 2022 that faded to single digits Most USDC on Morpho clears near 4%. if AVLT moves or LTV tightens, the recursion becomes exit risk, not free yield


