Weekly RiskDAO report 13 Oct '23

All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.

Summary

Messari published an interesting graphic that highlighted how the RWA shift has increased lending APYs.

Last week saw the launch of new lending protocols and ETH Mainnet: Instadapp is launching Fluid and Morpho is launching Morpho Blue.

FRAX has rolled out sFRAX in an attempt to replicate DAI’s supply increase after the DAI Savings Rate was re-introduced earlier this year.

USDR, a stablecoin backed by DAI and real estate, depegged by 50% as the DAI reserve was drained by users who swapped USDR into DAI.

Stablecoin monitoring

GUSD liquidity stagnated around $2.4m. sUSD liquidity declined from $6.6m to $4.6m. LUSD liquidity recovered from $5.9m to $9.2m. sUSD backing declined from 400% to 367%. LUSD backing also remained largely unchanged at 250%.

There are no significant oracle deviations between DEX and CEX prices.

Watchlist

stETH remains the heavyweight collateral across Gearbox with a share of 64.2% (+440bps vs last week). The growing importance of stETH requires monitoring to avoid the build-up of significant cluster risks.

Pools summary (weekly comparison)

DAI

Total pool size amounts to $2.4m, down from $3.6m. The decline is due to the removal of deposits of stkcvxcrvPlain3andSUSD worth $1.2m. The largest asset is yvDAI at $1.2m (unch), followed by stkcvxLUSD3CRV-f at $0.7m and stkcvxgusd3CR at $0.5m.

Total debt declined from $3.1m to $2m.

The pool remains predominantly collateralized by stablecoins.

USDC

There have been no changes within the pool over the last couple of weeks.

Total pool size stayed flat at $2.6m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $1.2m (unch), followed by stkcvxLUSD3CRV-f at $0.7m (unch) and USDC at $0.4m (unch).

This pool also remains largely backed by stablecoin assets.

Total debt also stayed static at $2.2m.

WETH

The pool amounts decreased from $11m to $10.5m. The largest collateral assets are stETH (from $10.3m to $9.9m), FRAX (unchanged at $0.4m) and yvWETH at $0.2m (also unchanged).

The pool is 94% collateralized by stETH.

Total debt has decreased from $8.8m to $8.4m.

FRAX

The pool’s credit account has been closed as of a few weeks ago.

WBTC

The pool has no active credit accounts. All active positions were closed several weeks ago.

wstETH

Demand for borrowing stETH continues to be subdued with no active credit accounts. This is a continuation from the previous weeks.