All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
This week BTC crossed $35k, up over 15% in 24 hours, as BlackRock’s Bitcoin ETF gets its ticker (IBTC) published, making Cointelegraph “fake” news from last week’s report a bit closer to reality.
Morpho announced MetaMorpho - a 2nd layer for permissionless lending on top of its recently launched DeFi lending primitive - Morpho Blue.
LUSD redemptions at over 200% collateral ratio due to continuous selling pressure probably coming from Maker’s DSR strategies. You can track the latest Trove redemption rates on this Dune dashboard.
Stablecoin monitoring
Here’s a summary of this week’s main changes in the stablecoin monitoring section -
| Asset | Liquidity ($) | 7d change | Backing Ratio (7d change) |
|---|---|---|---|
| GUSD | 1.39M | -$0.21M (13%) | – |
| sUSD | 6.03M | +$1.43M (31%) | 449.42% (+4200bps) |
| LUSD | 8.7M | +$0.4m (4.8%) | 292.86% (+4200bps) |
There are no significant oracle deviations between DEX and CEX prices.
Watchlist
stETH keeps on growing its dominance, holding 62.35% of all collateral across Gearbox, an extra 325bps from last week. The growing importance of stETH requires monitoring to avoid the build-up of significant cluster risks.
Pools summary (weekly comparison)
DAI
Total pool size dropped from $2.4m to $2.02m, with yDAI remaining the largest asset in the pool with $1.17m, dominating 58% of the pool’s total, followed by stkcvxLUSD3CRV-f with $0.7m.
Total debt dropped to $1.74m.
The pool remains predominantly collateralized by stablecoins.
USDC
The pool size remains largely at the same level at $3.8m, with the same collateral assets distribution - stkcvxcrvFRAS at $1.2m (unch), stkcvxcrvPlain3andSUSD at $1.2m (unch), and stkcvxLUSD3CRV-f at $0.7m (unch) accounting in total for 83.5% of the pool.
This pool also remains largely backed by stablecoin assets.
Total debt slightly declined from $3.1m to $3.03m.
WETH
The pool decreased this week from $10.6m to $10.1m, mainly as a result of a $0.4m FRAX withdrawal from the pool.
The largest collateral asset remains stETH (largely unchanged at $9.95m), now dominating 98% of the pool collateral. yvWETH remained at $0.2m.
Total debt has dropped from $8.5m to $8.2m.
FRAX
The pool’s credit account has been closed as of a few weeks ago.
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 in continuation of previous weeks.