Modular markets: share liquidity risk (partially) but NOT solvency risk Monolithic markets: share liquidity AND solvency risk No, @MorphoLabs didn't froze at all as I look at actual data and not CT vibes. If it have been monolithic markets it would have, but here even affected vaults where quite liquid thanks to shared liquidity. Lender from unaffected vaults got a boost in yield for almost no liquidity cost. This is what should happen when people are afraid and credit is scarce. There was 0 impact on Prime vaults. Morpho Markets V2 will also add even more tools to control liquidity.

@MorphoLabs Lenders if affected vaults can actually exit thanks to the shared liquidity and lenders on unaffected vault lose some liquidity (we always positioned Smokehouse can become temporary illiquid [I mean frozen for some hours], even if it never did) for higher yield.