Weekly RiskDAO report 23 June ‘23

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


Markets have experienced a substantial rally on the back of Bitcoin ETF filings by BlackRock and Invesco/WisdomTree. BTC dominance has crossed 50% for the first time since April 2021.

The Aave community voted down a proposal by Gauntlet to freeze the Aave v2 CRV markets and set the LTV to nil. The proposal came in response to v2’s heavy exposure to CRV (285m CRV worth $190m) as a collateral asset. CRV’s market depth and liquidity has fallen substantially over the last months. Liquidations would cause substantial slippage that trigger more forced selling and potentially send the price into a death spiral.

The Frax team introduced Fraxchain to the community. Fraxchain is positioned as a layer-2 “hybrid-rollup” on Ethereum that utilizes both fraud proofs and zero-knowledge proofs. The plan is for Fraxchain to use frxETH for gas and possibly distribute protocol-generated fees to veFXS holders.

The Uniswap Labs team announced Uniswap V4, extending V3’s concentrated liquidity architecture.

USDT experienced a depegging event in the last week which coincided with the release of hitherto unpublished USDT documents - stemming from an investigation by the New York Attorney General - that proved Tether held Chinese commercial paper at some stage. USDT’s share in the 3CRV pool climbed to 74% at its peak. It’s now back down to 35%.


The proposals concerning new collateral additions to the WETH and OHM pools are currently up for voting on Snapshot.

RiskDAO collaborated with Gearbox on these proposals: The suggested parameters are in line with our simulation results.

Stablecoin monitoring

GUSD liquidity moved up from $6.6m to $6.8m. sUSD liquidity increased from $14.5m to $17m. LUSD liquidity declined from $24.3m to $20.3m. sUSD backing improved from 331% to 360%. LUSD backing moved from 245% to 258%.

There are no significant oracle deviations between DEX and CEX prices. The only deviation standing out is the sUSD CEX price which is 8.6% below the oracle price.


stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool as it accounts for 35% (unchanged) of the total. The ratio has come down from a peak of ~40%. We continue monitoring this ratio to avoid concentration risk from building up.

Pools summary (weekly comparison)


There’s been no weekly change in the pool composition and volume.

Total pool size stayed flat at $12.1m. stkcvxcrvPlain3andSUSD remains the #1 asset at $7.2m (unchanged), followed by stkcvxgusd3CRV at $2.9m (unchanged) and yvDAI at $1.2m (unchanged).

Total debt also remained unchanged at $10.2m.

The pool remains predominantly collateralized by stablecoins.


Total pool decreased from $16m to $15.6m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $8.4m, followed by stkcvxgusd3CRV at $3.8m and stkcvxLUSD3CRV-f at $2.1m.

This pool also remains largely backed by stablecoin assets.

Total debt decreased slightly from $13.5m to $13.1m.


The pool amount further decreased from $17.3m to $15.1m. The largest collateral assets are stETH (-$2.2m to $13m), stkcvxsteCRV (+$0.1m to $1.2m) and FRAX ($0.5m, unchanged).

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

Total debt fell from $13.9m to $12.2m.


This pool has total collateral of $1.5m (-$1.1m), mostly in the form of stkcvxgusd3CRV at $1.2m

(-$0.6m) & yvDAI at $0.3m (-$0.5m).

Total debt stands at $1.2m, down from $2.2m in the previous week.


The pool has no active credit accounts. All active positions were closed during the previous week.


Demand for borrowing stETH continues to be subdued with no active credit accounts. This is a continuation from the previous week.