Weekly RiskDAO report 30 June ‘23

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


Crypto prices staged a price recovery over the last week with BTC hitting $31k and ETH touching $1.9k. The price action came on the back of BTC ETF filings from Blackrock and Invesco/WisdomTree. Hong Kong residents are now able to purchase BTC and ETH ETFs through HSBC Hong Kong.

Investor sentiment has clearly turned favorable with Coinshares reporting ~$200m of inflows into crypto investment vehicles last week.

DeFi 1.0 coins (Aave, Compound, Curve, SNX) also saw double-digit price gains over the weekend. They have pared gains ever since w/out much clarity what caused the pump. Some market commentators speculate that Robert Leschner stepping down from Compound and launching “SuperState” led insiders to scoop up $COMP.

TUSD is looking like the next dollar-pegged stablecoin to falter, caused by crypto custodian Prime Trust’s inability to fulfill all of its customers’ withdrawal requests. It is unclear regarding what amount of TUSD collateral was held at the custodian. Three theories are floating around: Prime was just a banking partner; Prime held collateral at some point, but to a limited amount; Prime held nearly all of the collateral since the firm lost its money long ago.

TUSD traded at 80cts vs USDT on Binance.US and the TUSD-3CRV pool is seriously imbalanced.

Binance has been one of the main supporters of TUSD, and is the primary reason for its market cap increase. Just as more questions about TUSD/Prime Trust surface, Binanced added two new TUSD-trading pairs.

GUSD experienced a depeg this week from which it still has not properly recovered. The price is currently at $0.972 and fell to as low as $0.962 earlier this week vs 3CRV.


The proposals concerning new collateral additions to the WETH and OHM received overwhelming support by the community (see Snapshot vote).

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

Stablecoin monitoring

GUSD liquidity fell sharply from $6.8m to $1.9m. sUSD liquidity decreased marginally from $17m to $16.7m. LUSD liquidity recovered from $20.3m to $20.8m. sUSD backing further improved from 360% to 370%. LUSD backing stayed flat at 260%.

There are no significant oracle deviations between DEX and CEX prices. The only deviation standing out is the sUSD CEX price which is 8.5% below the oracle price. sUSD is primarily traded on-chain and thus this deviation does not come as a surprise.


stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool as it accounts for 36% (+100bps) 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)


Total pool size declined from $12.1m to $8.6m. stkcvxcrvPlain3andSUSD remains the #1 asset at $6m (-$1.2m), followed by yvDAI at $1.2m (unchanged) and stkcvxgusd3CRV at $0.7m (-$2.2m) and .

Total debt fell from $10.2m to $7.2m.

The pool remains predominantly collateralized by stablecoins.


Total pool decreased from $15.6m to $12.1m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $7.2m (-$1.2m), followed by stkcvxLUSD3CRV-f at $2.1m (unchanged) and stkcvxgusd3CRV at $1.5m (-$2.3m).

This pool also remains largely backed by stablecoin assets.

Total debt decreased from $13.1m to $10.1m.


The pool amount increased slightly from $15.1m to $15.4m. The largest collateral assets are stETH (+$0.2m to $13.2m), stkcvxsteCRV ($1.2m, unchanged) and FRAX ($0.5m, unchanged).

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

Total debt increased from $12.2m to $12.4m.


This pool has total collateral of $0.3m (-$1.2m), mostly in the form of yvDAI at $0.3m (unchanged). $1.2m worth of stkcvxgusd3CRV were withdrawn over the last week.

Total debt stands at $0.2m, down from $1.2m the previous week.


The pool has no active credit accounts. All active positions were closed two weeks ago.


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