Weekly RiskDAO report 2 Dec 22

Weekly RiskDAO report 2 Dec 22

Overview

This week saw renewed FUD around wrapped assets, most notably WBTC & WETH, primarily steered up through social media posts.

WBTC depegged up to a 1.5% discount vs BTC spot but has since recovered. BitGo reiterates that the wrapped assets are fully backed by BTC in their custody. The BitGo DAO is reorganizing the multi-sig signers as some existing parties have become inactive.

Speculation about the backing of WETH took over CryptoTwitter. However, any concerns were quickly refuted given the WETH backing can be verified on-chain.

Aave is discussing a repayment plan for the 2.6m $CRV bad debt. The current discussion favors a combination of Gauntlet’s insolvency refund and Aave treasury. The Aave community is also kicking off a larger debate about risk management, such as the creation of a Risk Council who can act swiftly in emergency situations.

MakerDAO has voted to reinstate a DAI Savings Rate of 1% as a result of their recent yield-generating foray in real world assets (RWA), mostly treasury bonds.

There was relatively little FUD wrt stablecoins this week.

Stablecoin monitoring

Over the last week, GUSD liquidity decreased from $18.0m to $11m. sUSD backing remained steady at 411% and LUSD backing increased from 228% to 245%.

FRAX saw liquidity increase by $100m from $270m to $370m. USDT liquidity also recovered from $200m to $360m.

Pools summary (weekly comparison)

DAI

Total pool collateral recovered back to $18.4 from $17.3m. yvDAI was the biggest winner with +$2.4m, followed by stkcvxLUSD3CRV with +$0.6m. stkcvxcrvPlain3andSUSD experienced the biggest decline of -$1.7m

The pool remains predominantly collateralized by stablecoins.

USDC

Total pool collateral saw a decrease of $1.2m to $29.1m mostly driven by stkcvxFRAX3CRV (-$2m to $7.7m) and stkcvxgusd3CRV (-$1m to $6.5m). stkcvxLUSD3CRV and skcvxcrvPlain3andSUSD saw increases of $1.1m and $0.9m, respectively.

This pool also remains large backed by stablecoin assets.

WETH

The pool saw a material decrease of collateral value from $30.3m to $26.3m, driven by yvWETH (from $19.3m to $10.7m) . stETH increased by $2.9m to $9m, followed by stkcvxsteCRV (+$0.8m to $3.65m).

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

WBTC

The pool saw a deposit of $0.11m in WBTC collateral. Total debt amounts to $0.09m.

wstETH

Total pool assets and composition remains largely unchanged compared to last week with $1.87m total assets and derivative ETH collateral.

Summary

Current risk parameters are on par with our models.

We continue to closely monitor stablecoin liquidity.

Additional stats, updated daily, are available in our dashboard at https://gearbox.riskdao.org/