Sentora Morpho Vaults See Outflows Following MetaMask Security Incident
Depositors pulled funds from Sentora-curated vaults on the Morpho lending protocol after MetaMask disclosed a security issue involving its staking operations.
Sentora’s Morpho vaults experienced sharp outflows on September 30, 2026, following a security incident disclosed by MetaMask. While the wallet provider stated that user wallets were not at immediate risk, the incident triggered a reaction from depositors across the lending protocol.
The outflows were linked to the MetaMask incident by timing, though there is no evidence that Sentora’s vaults were technically exposed to the security problem. Sentora acts as a risk manager on Morpho, where it curates vaults and sets parameters for how deposits are lent out.
As of late September 2026, Sentora managed over $1.1 billion across its Morpho V2 vaults. Its largest products include vaults for PYUSD, RLUSD, x Spark RLUSD, and PRIME, with the PYUSD and RLUSD vaults holding approximately $425 million and $414 million respectively.
Sentora has maintained a clean loss record by utilizing conservative risk parameters, even during previous Morpho-related incidents in late 2025 and early 2026. However, the recent withdrawals highlight how depositors may react to the broader security climate rather than just direct exposure.
Large withdrawals from these vaults can increase utilization rates, which is the percentage of deposits currently lent out. Higher utilization typically leads to increased borrowing rates and may impact the ability of remaining depositors to withdraw funds instantly.
Market participants are now watching to see if Sentora’s vault totals stabilize or continue to decline. Traders are also monitoring utilization rates on the PYUSD and RLUSD vaults for signs of liquidity strain, as well as whether other Morpho curators like Steakhouse Financial experience similar activity.
