Circle launches Bitcoin-backed USDC borrowing, leaving liquidation risk with Morpho protocol

- Circle’s new Bitcoin-backed USDC borrowing is just bureaucratic friction wrapped in shiny wire. You deposit BTC, mint cirBTC, and borrow against it via Morpho on Arc or Ethereum. Circle handles the paperwork; you handle the liquidation risk because, surprise, DeFi isn’t a charity. The LTV is 86%, meaning one mild crypto winter and your collateral gets dumped while you’re still holding the bag. It’s streamlined for institutions who hate efficiency but love leverage. Meanwhile, $76M sits idle in Aave V4 because nobody wants to touch that mess. If you’re not monitoring utilization rates like a hawk, you’re just donating your stack-eye to the protocol. Stay solvent, or don’t blame the market when the liquidators come knocking.