All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
Balancer revealed a critical vulnerability putting $33M worth of assets at risk on Aug. 21. The protocol urged users providing liquidity to its affected pools to withdraw their assets.
Users pulled nearly $200M from Balancer in 24 hours in response to the incident.
Venus Protocol is in the middle of liquidating a large BNB position (originally 900k, now down to 650k) in order to recover a $150m loan. The tokens ended up on Venus after a cross-chain bridge hack. The hacker used Venus as exit liquidity and likely never intended to repay the loan. The BNB core team is the whitelisted liquidator and the outstanding loan balance amounts to ~$95m with a liquidation price of $190 per BNB.
DAO governance for lending protocols continues to receive a lot of attention after the CRV saga. There’s been a Twitter Spaces with a group of very savvy devs/contributors. Paul from Morpho and Ivan from Gearbox also shared their opinions on X.
MakerDAO has voted to reduce the EDSR from 8% to 5% as well as the increase of stability fees across a number of vaults. The protocol also teases a retroactive airdrop for Spark users.
Thorchain has launched its new lending product: It comes with a zero interest rate, no liquidations or external oracles. BTC & ETH are the first two collateral assets at launch.
Aave proposes to increase the borrow rate for its GHO stablecoin from 1.5% to 2.5%.
Stablecoin monitoring
GUSD liquidity decreased from $2.9m to $2.1m. sUSD liquidity fell from $9.2m to $8.8m. LUSD liquidity increased materially from $6.7m to $10.2m. sUSD backing stayed largely flat around 400%. LUSD backing decreased from 250% to 230%.
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. Its weight has considerably reduced to 10.6% now.
However, stETH has emerged as the new heavyweight in the collateral pool with a share of 45.5% (+130bps vs last week). In addition, yvDAI now accounts for 18.7%.
The growing importance of stETH and other large assets like yvDAI requires monitoring to avoid the build-up of significant cluster risks.
Pools summary (weekly comparison)
DAI
Total pool size decreased from $7.2m to $6.6m. yvDAI is the #1 asset at $4.2m (+$0.5m), followed by stkcvxcrvPlain3andSUSD at $1.2m (unch) and stkcvxLUSD3CRV-f at $0.7m. stkcvxFRAX3CRV-f deposits worth $1.1m as of last week have been removed.
Total debt fell from $6.1m to $5.6m.
The pool remains predominantly collateralized by stablecoins.
USDC
Total pool size declined from $5.4m to $4.9m, with the largest collateral assets being stkcvxLUSD3CRV-f at $1.7m (unch), followed by stkcvxFRAX3CRV-f at $1.3m (-$0.5m) and stkcvxcrvPlain3andSUSD at $1.2m (unch).
This pool also remains largely backed by stablecoin assets.
Total debt fell from $4.6m to $4.1m.
WETH
The pool amount decreased back from $11.4m to $10.9m. The largest collateral assets are stETH (-$0.5m to $10.2m), FRAX (unchanged at $0.4m) and yvWETH at $0.2m (also unchanged).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt fell from $9m to $8.7m.
FRAX
The pool’s credit account has been closed and deposits withdrawn. The FRAX pool had been relatively small with collateral of $0.15m and debt worth $0.12m, as of last week.
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.