All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
The ETH Shapella upgrade was performed successfully, turning into a “bullish unlock”. In the 48 hours following the Shapella upgrade ETH experienced a 13.1% surge, rising from $1,871 to $2,117.
The Shapella upgrade allows users and validators to unstake through partial or full withdrawals, although a withdrawal queue prevents instant liquidation. To date, the majority of ETH has been withdrawn using the partial method, with many users choosing to re-deposit their funds.
Borrow demand for LSDs are virtually non-existent: Aave’s stETH market has a utilization rate of 13%. Lenders are currently earning under 10 bps and borrowers are paying 28 bps on the protocol’s Ethereum V3 market.
FTX seems to be getting a second lifeline according to Reuters: FTX’s recovered funds are now valued at $7.3 billion, up from $6.2 billion since November. At the time of its collapse, FTX owed its top 50 creditors an estimated $3 billion. There’s also talk of the exchange relaunching in Q2 and the FTX Japan auction has been canceled.
Lending protocol HundredFinance has been hacked on Optimism for about $7m in various tokens. The team is publicly negotiating a 10% bounty if the hacker returns the funds.
Tether blacklisted $3 million of USDT belonging to the address of a MEV bot, due to pressure from law enforcement agencies. The MEV bot in question, called the Sandwich Exploiter, made headlines last week when it snagged a whopping $25.4 million from other MEV bots by exploiting a bug in the Flashbots MEV-Boost relay.
Stablecoin monitoring
GUSD liquidity recovered back to $61 from $56m. sUSD liquidity stayed around $22.8m. LUSD increased from $27.5m to $30.8m. sUSD backing increased from 426% to 473%. LUSD backing remained flat around 286%.
There are no significant oracle deviations between DEX and CEX prices.
Watchlist
stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool as it accounts for 34% (+200bps) of the total. The ratio has come down a lot over the last weeks from a peak of ~40%. We continue monitoring this ratio to avoid concentration risk from building up.
Pools summary (weekly comparison)
DAI
Total pool size decreased from $16.9m to $14.8m. stkcvxcrvPlain3andSUSD remains the #1 asset at $9.5m (-$1.2m), followed by stkcvxgusd3CRV at $2.9m (unchanged) and yvDAI at $1.4m (-$1m).
Total debt declined from $14.3m to $12.4m.
The pool remains predominantly collateralized by stablecoins.
USDC
Total pool collateral remained unchanged at $21.5m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $14m, followed by stkcvxgusd3CRV at $3.9m and stkcvxFRAX3CRV-f at $1.3m.
This pool also remains large backed by stablecoin assets.
Total debt remained unchanged at $17.5m.
WETH
The pool declined from $33m to $29m. The largest collateral assets are stETH (-$1.3m to $20.1m), stkcvxsteCRV (-$1.3m to $7.9m) and FRAX ($0.5m).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt declined from $26.9m to $23.7m.
FRAX
This is a new pool that went online recently. It has total collateral of $3.8m (+$1.5m), mostly in the form of stkcvxFRAX3CRV-f ($1.5m) and stkcvxgusd3CRV ($1.2m) as well as yvDAI ($0.8m).
Total debt has increased from $1.9m to $3.1m.
WBTC
A new credit account has been opened up over the last week, totalling $0.4m in deposits (denominated in stETH) and $0.3m in loans.
wstETH
Demand for borrowing stETH continues to be subdued with no active credit accounts. This is a continuation from the previous week.