All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Memecoins are at the center of market action with coins like $PEPE whose market cap peaked at $1B market cap, generating a 4,000% return from its price just 17 days earlier (per Coingecko data). The memecoin mania also pushed Uniswap users to new highs - not seen since May 2021 - and contributed to a significant gas price spike on Ethereum Mainnet.
Tether, the company behind USDT, published a new attestion report showing it generated $1.5bn in Q1 ‘23 profits. The report also shows direct US T-bill holdings of over $53bn (a new ATH for Tether) representing more than 64% of total reserves. A significant reduction in bank deposits, which Tether confirms is part of their risk management to lower unsecured counterparty exposure.
The memecoin mania is also spilling over onto the Bitcoin ecosystem: The recent popularity of Ordinals Inscriptions and BRC-20 transactions pushed transaction fees on the Bitcoin chain to US$3.5 million on May 3, the highest since late May 2021.
Aave’s stablecoin GHO is getting closer to launch stage as the Aave DAO polled community members for initial parameters. A borrow rate of 1.5% and a bucket capacity of $100m were among the key parameters.
Talking about new stablecoins, Curve’s crvUSD has been deployed on Mainnet. The first 1m crvUSD are backed by Frax’s sfrxETH.
GUSD liquidity decreased from $62m to $35m. sUSD liquidity recovered from $19m to $20m. LUSD liquidity stayed flat at $23m. sUSD backing slightly declined from 408% to 366%. LUSD backing declined from 270% to 260%.
There are no significant oracle deviations between DEX and CEX prices. The only deviations that stand out are the sUSD & GUSD CEX prices which are 3% & 2.1% below the oracle price, respectively.
stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool as it accounts for 34% (unchanged) of the total. The ratio has come down a lot over the last weeks from a peak of ~40%. We continue monitoring this ratio to avoid concentration risk from building up.
Pools summary (weekly comparison)
Total pool size stayed flat at $13.4m. stkcvxcrvPlain3andSUSD remains the #1 asset at $7.8m (-$0.6m), followed by stkcvxgusd3CRV at $3.4m (+$0.5m) and yvDAI at $1.3m (unchanged).
Total debt remained unchanged at $11.3m.
The pool remains predominantly collateralized by stablecoins.
Total pool collateral stayed flat at $20.2m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $13m, followed by stkcvxgusd3CRV at $3.8m and stkcvxFRAX3CRV-f at $1.3m.
This pool also remains largely backed by stablecoin assets.
Total debt remained unchanged at $16.5m.
The pool declined from $25.5m to $24.5m. The largest collateral assets are stETH (-$0.9m to $17.7m), stkcvxsteCRV (-$0.1m to $5.8m) and FRAX ($0.5m, unchanged).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt declined from $20.8m to $20m.
This pool has total collateral of $3.7m (unchanged), mostly in the form of stkcvxFRAX3CRV-f ($1.4m) and stkcvxgusd3CRV ($1.2m) as well as yvDAI ($0.8m).
Total debt stands at $3m.
This is a relatively small pool with $0.4m in deposits (denominated in stETH) and $0.3m in loans. It’s heavily concentrated with one depositor and one borrower.
Demand for borrowing stETH continues to be subdued with no active credit accounts. This is a continuation from the previous week.