All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
This week closes with markets deeply in red: BTC & ETH are down by 10% and 9% (over the last 7 days), respectively. The downward move has been exacerbated by liquidations of long positions, equivalent to levels last seen during the FTX blowup.
An article by the WSJ about SpaceX’s BTC holding caused a stir: It seems the company wrote off its holdings but the news came across as if SpaceX had sold all of their BTC. In addition, financial markets are digesting news out of China that the second-largest real estate developer Evergrande is filing for bankruptcy.
Shortly after the BTC news, another headline hit the ticker suggesting the SEC is set to greenlight an ETH futures ETF.
MakerDAO is currently voting on a proposal to reduce the EDSR from 8% to 5% as well as the increase of stability fees across a number of vaults.
Stablecoin monitoring
GUSD liquidity decreased from $3.1m to $2.9m. sUSD liquidity fell from $11.2m to $9.2m. LUSD stayed flat around $6.7m. sUSD backing declined from 460% to 410%. LUSD backing stayed flat at ~250%.
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. Its weight has considerably reduced to 9.9% now. However, stETH has emerged as the new heavyweight in the collateral pool with a share of 44.2% (+200bps vs last week). Combined, these two assets make up 54.1% (+200bps) of all collateral assets. This requires monitoring to avoid the build-up of significant cluster risks.
Pools summary (weekly comparison)
DAI
There were no weekly changes in the pool.
Total pool size stayed flat at $7.2m. yvDAI is the #1 asset at $3.7m (unch), followed by stkcvxcrvPlain3andSUSD at $1.2m (unch) and stkcvxFRAX3CRV-f
at $1.1m (unch).
Total debt fell from $7.4m to $6.1m.
The pool remains predominantly collateralized by stablecoins.
USDC
Total pool size declined from $5.9m to $5.4m, with the largest collateral assets being stkcvxFRAX3CRV-f at $1.8m (-$0.5m), followed by stkcvxLUSD3CRV-f at $1.7m (unch) and stkcvxcrvPlain3andSUSD at $1.2m (unch).
This pool also remains largely backed by stablecoin assets.
Total debt fell from $5m to $4.6m.
WETH
The pool amount increased from $10.9m to $11.4m. The largest collateral assets are stETH (+$0.5m to $10.7m), FRAX (unchanged at $0.4m) and yvWETH at $0.2m (also unchanged).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt increased from $8.5m to $9m.
FRAX
There have been no weekly changes in the pool.
Collateral of $0.15m has been deposited (mostly yvCRV-FRAX) and debt worth $0.12m has been borrowed.
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.