TechFlow reported on November 12, 2026 (published at 00:15, UTC+8), citing The Defiant, that lending protocol Moonwell’s MIP-X75 risk adjustment had taken effect. The change lowers collateral factors for selected assets on Base and Optimism and removes collateral eligibility for VELO and wrsETH.
Reported parameter changes
On Base, the collateral factors were reduced as follows:
- AERO: from 58% to 55%
- WELL: from 35% to 20%
- MORPHO: from 40% to 30%
On Optimism:
- VELO: from 50% to zero, removing collateral eligibility
- wrsETH: from 20% to zero, removing collateral eligibility
- OP: from 55% to 50%
These percentages and the claim that the adjustment was already in effect are as reported by TechFlow via The Defiant. The source text does not include a governance vote record, an on-chain dataset, or a measurement block.
What a lower collateral factor does
A collateral factor is the share of deposited collateral that the protocol counts toward support for existing loans. Reducing that factor reduces the collateral support recognized for those loans. A position can therefore reach liquidation conditions even if the token price does not fall, because less of the same collateral is counted.
The report says affected borrowers can repay part of the debt or add other eligible collateral to restore a safety margin. It does not state how many positions were near liquidation, what account-level buffers remained, or which other assets still qualified.
Setting VELO and wrsETH to zero is a removal of collateral eligibility, not a smaller haircut of the kind applied to AERO, WELL, MORPHO, and OP. The source does not describe whether existing deposits of VELO and wrsETH remained in the market as non-collateral assets.
Original article: TechFlow, November 12, 2026.
