All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
TokenTerminal released a good summary article about Lending protocols in its “Weekly Fundamentals” series: Year to date, the lending sector has seen an increase in active loans from $3.5bn to $5.5bn. Aave (market share of ~50%) saw active loans grow from $2.1bn to $2.8bn. Radiant Capital and Morpho surpassed their competitors with active loan growth rates of 370% and 63%, respectively, with Radiant Capital’s growth significantly influenced by its expansion to the BNB Chain.
Speaking about Radiant Capital, the protocol announced a $10m fundraise led by Binance Labs yesterday.
Overall, the market remains in good shape with US$742m inflows over the last 4 weeks, although investors maintain their focus on Bitcoin. This represents the largest run of inflows since the final quarter of 2021.
Aave’s GHO has been activated. So far, $5.5m has been minted with close to 50% of it sitting in the GHO Balancer pool. GHO has so far been mostly trading below $1, averaging $0.9865 and dipping to $0.98. The other major new stablecoin crvUSD has experienced significant growth hitting $83m in crvUSD minted.
Stablecoin monitoring
GUSD liquidity fell from ~$2m to $1.7m. sUSD liquidity decreased from $30m to $22.4m. LUSD liquidity recovered from $10m to $13.6m. sUSD backing materially improved from 390% 540%. 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. It’s weight has considerably reduced to 20.3% now. However, stETH has emerged as the new heavyweight in the collateral pool with a share of 43% (+700bps vs last week). Combined, these two assets now make up 63% (-800bps vs last week) of all collateral assets. This requires monitoring to avoid the build up of significant cluster risks.
Pools summary (weekly comparison)
DAI
Total pool size decreased from $8.6m to $7m. stkcvxcrvPlain3andSUSD remains the #1 asset at $3.6m (-$2.4m), followed by yvDAI at $2m (+$0.8m) and stkcvxLUSD3CRV-f at $0.7m (unchanged).
Total debt decreased from $7.2m to $5.9m.
The pool remains predominantly collateralized by stablecoins.
USDC
Total pool continues to shrink, from $10.7m $7m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $2.3m (-$3.7m), 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 $8.9m to $5.9m.
WETH
The pool amount slightly grew by $0.3m to $14.4m. The largest collateral assets are stETH (+$0.2m to $12.5m), stkcvxsteCRV ($0.8m, unchanged) and FRAX ($0.5m, unchanged).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt increased from $11.3m to $11.5m.
FRAX
This pool has total collateral of $0.7m (+$0.4m), mostly in the form of Frax at $0.4m (+$0.4m) & yvDAI at $0.3m (unchanged).
Total debt stands at $0.3m, up by +$0.1m from 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.