All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
MakerDAO announced SparkLend, a protocol that builds on Aave v3, is owned by Maker governance and will become one of Maker’s first SubDAOs. Spark Lend will integrate with Maker’s D3M and have a debt ceiling of 200m DAI. The launch date is expected for April 2023 and 10% of gross profit will be paid to Aave. Spark Lend also integrates with Element Finance and Sense Protocol to offer fixed rate lending.
BonqDAO, an overcollateralized stablecoin protocol on Polygon, was exploited for BEUR 100m. BEUR denotes BonqDAO’s EURO-pegged stablecoin. The attacker exploited BonqDAO’s implementation of the Tellor oracle and was able to artificially inflate the collateral token wALBT (AllianceBlock’s governance token).
The attacker was able to liquidate $1.5m of BEUR for ETH and USDC with the remainder being stuck as there is no exit liquidity. It appears BonqDAOs’ faulty oracle implementation relates to Tellor’s different price data: Historical prices (which are verified and checked by other validators) vs current prices (which can be reported by anyone before they are verified by other validators). BonqDAO utilized current prices which the attacker knew to manipulate in order to inflate wALBT’s price.
Sperax, an overcollateralized stablecoin protocol on Arbitrum issuing $USDS, was exploited for $300k USDS before the attack was thwarted. In a post-mortem blog post, the Sperax team admits to having introduced the bug in a code update in December 2022 which was missed during reviews. The hacker was identified and stolen funds will be returned.
Solana-based lending protocol Everlend is shutting down. The protocol team cites missing liquidity as the main reason for not being able to offer a protocol with product-market fit.
Avi Eisenberg waves his bail and remains in jail.
Huobi is issuing $FUD “FTX User Debt” tokens in order to create a market in FTX’s user liabilities. $FUD tokens are administered by DebtDAO which “…hopes to help not only itself but also more creditors reclaim their rights and assets”.
GUSD liquidity continues to increase from $26.7m to $28.5m. sUSD liquidity decreases from $24.2m to $22.6m and LUSD dropped from $43.3m to $32m. sUSD backing dropped from 580% to 434%. LUSD backing recovered from 253% to 270%.
DEX liquidity for all other stablecoins remained largely unchanged.
There are no material oracle deviations between DEX and CEX prices.
stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool as it accounts for 34% (down 200bps from last week) of the total. This in itself does not pose a specific red flag but deserves extra attention to avoid concentration risk from building up.
Pools summary (weekly comparison)
Total pool size stayed at $20.6m. stkcvxcrvPlain3andSUSD remains the #1 asset at $11m (unchanged), followed by stkcvxgusd3CRV at $5.1m (unchanged) and yvDAI at $1.6m (unchanged).
Total debt stayed at $17.2m.
The pool remains predominantly collateralized by stablecoins.
Total pool collateral has decreased slightly from $33.5m to $32.9m, with the largest collateral assets being stkcvxcrvPlain3andSUSD (-$1.2m to $19.1m) & stkcvxgusd3CRV (+$0.5m to $6.7m), followed by stkcvxLUSD3CRV-f ($0.5m to $2m).
This pool also remains large backed by stablecoin assets.
Total debt increased slightly from $26.5m to $27.2m.
The pool experienced a weekly increase from $32.6m to $35.8m. The largest collateral assets are stETH (+$1m to $18.4m), stkcvxsteCRV (+$1.9m to $13m) and yvWETH (unchanged, $2.8m).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt increased by $0.9m to $29.1m.
All credit accounts have been closed. The pool has had relatively small scale since inception with total assets of $0.14m over the last weeks.
Demand for borrowing stETH continues to be subdued with no active credit accounts. This is a continuation from the previous week.
Current risk parameters are on par with our models.
We continue to closely monitor stablecoin liquidity.
Additional stats, updated daily, are available in our dashboard at https://gearbox.riskdao.org/