All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
Crypto markets were sent into “up only”-mode on Thursday, 13 July as Ripple Labs won a partial victory in court on Thursday as a federal judge ruled that some of its sales of the XRP token, which were challenged as securities violations by the SEC, did not fully meet the definition of a securities offering. The SEC is likely to appeal the decision, however.
With risk appetite returning, this has already shown a recovery in Gearbox TVL over the last 24hrs.
The mystery around the Multichain hack has been cleared: Multichain CEO Zhaojun was arrested by Chinese authorities in May, leading to the team losing access to MPC node servers running under Zhaojun’s personal cloud server account. All of Zhaojun’s devices and the team’s operational funds, controlled by him, were also confiscated. On July 7, user assets locked on the MPC addresses were transferred to unknown addresses, while on July 9, remaining user assets were moved to addresses controlled by Zhaojun’s sister. However, on July 13, Zhaojun’s sister was taken into custody, leading to uncertainty about the status of the preserved assets, and causing the team to cease operations and request assistance to bring down the Multichain website.
All eyes are on Aave’s GHO stablecoin launch as the relevant Aave Improvement Proposal has gone live and so far has a resounding majority as support (vote ends on 14 July, 9:17pm UTC).
RWAs are taking more and more mindshare of DeFi participants as the number of recent announcements and launches is starting to look impressive. US government bond tokenization has seen TVL grow to ~$613m over the last months, with an average yield of 4.2%.
The hacker behind the $200m exploit of Euler has been forthcoming about the hack and “unintended consequences” in a recent interview. Turns out he is a 20-yrs old Argentinian who is now sitting in a Parisian prison.
Speaking about exploits: US Attorney’s Office for SDNY announced criminal charges against an individual earlier this week for exploiting a DEX on Solana.
Stablecoin monitoring
GUSD liquidity stayed flat at ~$2m. sUSD liquidity slipped from $33.2m to $30m. LUSD liquidity fell from $17.2m to $10m. sUSD backing remained flat at 390%. LUSD backing stayed flat at ~260%.
There are no significant oracle deviations between DEX and CEX prices.
Watchlist
Over the last weeks, we highlighted how stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool accounting for 40% at the top (currently sitting at 35%). However, stETH has emerged as the new heavyweight in the collateral pool with a share of 36% (-200bps vs last week). Combined, these two assets now make up 71% (-300bps vs last week) of all collateral assets. This requires monitoring to avoid the build up of significant cluster risks.
Pools summary (weekly comparison)
DAI
The pool experienced no weekly changes.
Total pool size stayed flat at $8.6m. stkcvxcrvPlain3andSUSD remains the #1 asset at $6m (unchanged), followed by yvDAI at $1.2m (unchanged) and stkcvxLUSD3CRV-f at $0.7m (unchanged).
Total debt remained at last week’s level of $7.2m.
The pool remains predominantly collateralized by stablecoins.
USDC
Total pool decreased from $11.8m to $10.7m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $6m (-$1m), followed by stkcvxLUSD3CRV-f at $2.1m (unchanged) and stkcvxgusd3CRV at $1.2m (unchanged).
This pool also remains largely backed by stablecoin assets.
Total debt decreased from $9.9m to $8.9m.
WETH
The pool amount decreased by $1.6m to $14.1m. The largest collateral assets are stETH (-$1.7m to $12.3m), stkcvxsteCRV ($0.8m, unchanged) and FRAX ($0.5m, unchanged).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt decreased from $12.6m to $11.3m.
FRAX
This pool has total collateral of $0.3m (unchanged), mostly in the form of yvDAI at $0.3m (unchanged).
Total debt stands at $0.2m, in line with last week’s level.
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.