All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
The RiskDAO published a post-mortem about the USDC de-pegging event with a Gearbox-specific summary. The article is available here.
BTC has broken through $28k and ETH touched $1.8k over the weekend as the global financial sector continues to face significant pressures. Over the weekend, UBS agreed to buy Credit Suisse with the support of the Swiss central bank. There’s more stress in the system and macro voices are calling for QE already.
In other news, well-known crypto thinker & VC Balaji placed a $2m bet that BTC hits $1m in the next 90 days.
The stand-off between Alpha Homora and Iron Bank still has not been resolved. IB offered to individually unfreeze markets but AH declined arguing this would be unfair towards users. On 21 March, AH has published the 5th Open Letter proposing to commit to paying IB ~1.89M USDT and ~1.92M DAI within 1.5 years, allowing ETH and USDC depositors on Alpha Homora v2 to withdraw excess amounts proportionately (~30% for ETH and ~57% for USDC). As AH repays the debt, 63M locked ALPHA tokens will be returned from IB to Alpha treasury and distributed to affected users over time. Additionally, 20% of protocol fees from all upcoming Alpha products will be distributed to depositors over 1.5 years.
The Euler hackers returned about $5.4m of stolen funds to the protocol over the weekend. The hacker has become the target of a phishing attack, orchestrated by the Ronin hacker (which is associated with the North Korean Lazarus Group).
Stablecoin monitoring
GUSD liquidity slightly recovered from $15.6m to $16.8m. sUSD liquidity declined somewhat from $26.6m to $26m. LUSD increased from $24.8m to $27.8m. sUSD backing declined from 504% back down to 445%. LUSD backing remained flat at 274%.
There are no material oracle deviations between DEX and CEX prices.
Watchlist
stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool as it accounts for 32% (-700bps) 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 $14.5m to $14.3m. stkcvxcrvPlain3andSUSD remains the #1 asset at $8.4m (-$2.9m), followed by stkcvxgusd3CRV at $3.2m (+$2.3m) and yvDAI at $1.6m (+$0.5m).
Total debt stayed flat at $12m.
The pool remains predominantly collateralized by stablecoins.
USDC
Total pool collateral stayed flat at ~$21m, with the largest collateral assets being stkcvxcrvPlain3andSUSD (-$2.2m to $13.2m), followed by stkcvxgusd3CRV at $4.3m (+$3m) and stkcvxFRAX3CRV-f at $1.3m.
This pool also remains large backed by stablecoin assets.
Total debt remained flat at ~$17.5m.
WETH
The pool experienced a slight decrease from $30.8m to $30.4m. The largest collateral assets are stETH (+$1.4m to $18.8m), stkcvxsteCRV (-$2m to $8.7m) and yvWETH (unchanged at $1.4m).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt slightly decreased from $25.1m to $24.9m…
FRAX
This is a new pool that went online recently. It has total collateral of $2.5m, mostly in the form of stkcvxFRAX3CRV-f ($1.5m) and stkcvxgusd3CRV ($0.6m).
Total debt remains flat at $2m.
WBTC
There are no active credit accounts.
wstETH
Demand for borrowing stETH continues to be subdued with no active credit accounts. This is a continuation from the previous week.