Borrow rates on Morpho lending markets surged to approximately 40%, exceeding yields available on some leveraged Pendle Finance trades, according to research firm OAK Research. The elevated borrowing costs rendered certain yield-farming strategies unprofitable for traders leveraging positions through Pendle's fixed-yield products. By October 31, four tracked Morpho markets had cooled from their peak, with borrow rates settling between 8.9% and 12.7%. The rapid repricing underscores the sensitivity of DeFi lending markets to capital flows and leverage demand during periods of heightened activity.