Weekly RiskDAO report 17 Feb ‘23

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


The market has recovered materially since the beginning of the week with BTC breaking through $25k and ETH at $1.7k. The bullish market moves come against a backdrop of regulatory turbulence as the SEC is stepping up the actions against US onshore crypto platforms.

The SEC is clamping down on staking-as-a-service operated by US exchanges which forced Kraken to agree to a $30m settlement and shut down the service. Coinbase CEO appears more resolute to defend his stance that ETH staking is not a security and is prepared to go to court.

Paxos, issuer of USDP and BUSD stablecoins, has been notified by the NYDFS to stop minting new BUSD. Paxos will service BUSD redemptions to minimize disruption. However, the news sent ripples through the stablecoin space. Paxos is also likely to be sued by the SEC over allegations that BUSD constitutes a security.

Arbitrum lending protocol dForce was exploited to the tune of $3.65m, turns out the hack was carried out by a whitehat hacker and all funds are being returned.

Stablecoin monitoring

GUSD liquidity continues to increase from $28.5m $35.5m. sUSD liquidity clawed back last week’s losses and recovered from $22.6m to $25.8m. LUSD continues to drop from $32m to $23.7m. sUSD backing dropped from 434% to 408%. LUSD backing stayed at 270% on the weekly comparison.

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 40% (plus 600bps 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 increased from $20.6m to $22.5m. stkcvxcrvPlain3andSUSD remains the #1 asset at $13.6m (+$2.6m), followed by stkcvxgusd3CRV at $5.1m (unchanged) and yvDAI at $2.5m (+$0.9m).

Total debt increased from $17.2m to $18.9m.

The pool remains predominantly collateralized by stablecoins.


Total pool collateral has increased from $32.9m to $34.1m, with the largest collateral assets being stkcvxcrvPlain3andSUSD (+$2.5m to $21.6m) & stkcvxgusd3CRV (+$0.3m to $7m), followed by stkcvxFRAX3CRV-f at $1.38M.

This pool also remains large backed by stablecoin assets.

Total debt increased from $27.2m to $28.3m.


The pool experienced a weekly decrease from $35.8m to $31.8m. The largest collateral assets are stETH (-$0.9m to $17.5m), stkcvxsteCRV (-$3m to $10m) and yvWETH (unchanged, $2.8m).

The pool remains collateralized by mostly ETH or staked ETH assets.

Total debt decreased from $29.1m $25.8m.


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.