All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
Last week’s headlines were dominated by the Arbitrum $ARB airdrop.
Alpha Homora’s standoff with Iron Bank continues although the AH community is making progress: 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 AH community has approved the above proposal and is awaiting feedback from IB to implement the code changes.
In other news, Euler received $176m back from the hacker - out of a total of $200m stolen fund - and expects to receive the remainder as well. There’s some awkward on-chain messaging going on between the hacker and Euler:
“Jacob here. I don’t think what I say will help me in any way but I still want to say it. I fucked up,” the hacker wrote. “I didn’t want to, but I messed with others’ money, others’ jobs, others’ lives. I really fucked up. I’m sorry. I didn’t mean all that. I really didn’t fucking mean all that. Forgive me.”
Euler says they are negotiating with the hacker but it is unclear what these negotiations are about.
The regulatory side continues to hit hard with CFTC accusing Binance of operating an unregistered derivatives exchanges. Price declined in the wake of the news but recovered ever since.
USDC received support from the MakerDAO community which voted to retain USDC as the primary reserve asset.
Stablecoin monitoring
GUSD liquidity recovered from $16.8m to $19.2m. sUSD liquidity declined from $26m to $22.4m. LUSD held steady around $27.6m. sUSD backing declined from 445% to 422%. LUSD backing remained flat at 271%.
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 30% (-200bps) 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 increased from $14.3m to $19m. stkcvxcrvPlain3andSUSD remains the #1 asset at $10.7m (+$2.3m), followed by stkcvxgusd3CRV at $4.1m (+$0.9m) and yvDAI at $3.2m (+$1.6m).
Total debt increased from $12m to $16m.
The pool remains predominantly collateralized by stablecoins.
USDC
Total pool collateral stayed flat at ~$20.3m, with the largest collateral assets being stkcvxcrvPlain3andSUSD (-$1.6m to $11.6m), followed by stkcvxgusd3CRV at $4.1m (-$0.2m) and stkcvxLUSD3CRV-f at $1.5m.
This pool also remains large backed by stablecoin assets.
Total debt remained declined to $16.6m (-$0.9m).
WETH
The pool experienced an increase from $30.4m to $32.6m. The largest collateral assets are stETH (+$2.1m to $20.9m), stkcvxsteCRV (+$0.3m to $9.0m) and yvWETH (unchanged at $1.4m).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt increased from $24.9m to $26.6m.
FRAX
This is a new pool that went online recently. It has total collateral of $2.3m (-$0.2m), mostly in the form of stkcvxFRAX3CRV-f ($1.5m) and stkcvxgusd3CRV ($0.6m).
Total debt remains flat at $1.9m.
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.