RiskDAO report 18/11/22


Crypto contagion continues, and this week Genesis lending paused withdrawals. Consequently Gemini had to pause withdrawals from its earn program. At the same time GUSD interest rate on Aave spiked to over 100% yearly, and some speculated it might be connected to the recent events. However Gemini asserted the earn program is not related to its exchange business and to the GUSD backing.
Interestingly enough, this week, for the first time, the Gearbox protocol exposure to GUSD spiked from almost 0 to over $10m.
It is our belief, based on Gemini public statements, and considering that GUSD has almost $500m liquidity via the DAI psm module, that currently GUSD pegging is expected to continue, and no special actions are needed.

This week there was also abnormal price behavior for the CVX token in the CeFi markets, with almost 100% pump in a very short time period. At the time of writing, there are no reports that this was a malicious action.
CVX is listed as a collateral in Gearbox, however, it has very low liquidation threshold (25%), and almost 0 utilisation, so there was no real threat to the protocol, but this is a concerning incident.

Stable coin monitoring

This week, sUSD liquidity continue to shrank, with another 10% decrease in its liquidity.
FRAX and USDT liquidity bounced back, and went up by over 40%.

Pools summary


The pool is still collateralized almost only by stable coins. This week, the exposure to GUSD (via LP token) increased from 0 to over $5m of GUSD (lp tokens) were deposited.


Exposure to GUSD went from $0.13m last week, to $6.95m.


Almost $5m increase in deposits (around 20%), mostly due to stETH and stkcvxsteCRV


This week, for the first time, a user opened a credit account over the WBTC pool, but since then the account was closed, and there are still 0 credit accounts in the market.


The market remained almost without a change, with less than $2m of credit accounts collateral.


Current risk parameters are in par with our models.
We continue to closely monitor stable coin liquidity.

Additional stats, updated daily, are available in our dashboard at https://gearbox.riskdao.org/