All referenced data can be accessed directly on the Gearbox dashboard by RiskDAO.
Summary
The end of the week saw rapid see-saw of crypto prices rallying before sharply selling off. This was driven by leverage activity and $300m in liquidations (both long and short).
Alpha Homora’s (AH) stand-off with Iron Bank (IB) is entering the next phase: AH’s community voted to start legal proceedings against IB if no agreement is achieved by 28 April 8am UTC. As the deadline has elapsed, the dispute will now become a matter of lawyers and courts.
Crypto security researcher DevDacian wrote up a deep dive into Lending/Borrowing attacks in DeFi. The article aims to categorize the types of vulnerabilities that auditors & developers should be aware of in lending & borrowing platforms.
Kaiko provided a good analysis of LSDs on Aave & Compound. The article highlights a number of interesting facts such as Aave V2’s savvy move to allow stETH deposits, which quickly netted it over $3bn of deposits in just a couple months. User seem to leverage up by depositing stETH, borrowing ETH, then staking it for stETH. Currently, ETH is the most borrowed asset on Aave while DAI is the most borrowed on Compound. Meanwhile, stETH is the most deposited on Aave and ETH is the most deposited on Compound.
According to an analysis by CertiK, April saw $103m lost to exploits and attacks.
Blur launched Blend, an NFTfi protocol that offers NFT lending & Buy-Now-Pay-Later. The protocol has attracted more than ETH 15,000 in loans.
Stablecoin monitoring
GUSD liquidity decreased from $64m to $62m. sUSD liquidity dropped from $20m to $19m. LUSD liquidity stayed flat at $23m. sUSD backing slightly increased from 401% to 408%. LUSD backing stayed flat at 270%.
There are no significant oracle deviations between DEX and CEX prices. The only deviation that stands out is the sUSD CEX price which is 2.5% below the oracle price.
Watchlist
stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool as it accounts for 34% (+100bps) 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 stayed flat at $13.4m. stkcvxcrvPlain3andSUSD remains the #1 asset at $8.4m (unchanged), followed by stkcvxgusd3CRV at $2.9m (unchanged) and yvDAI at $1.3m (unchanged).
Total debt remained unchanged at $11.3m.
The pool remains predominantly collateralized by stablecoins.
USDC
Total pool collateral stayed flat at $20.3m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $13m, followed by stkcvxgusd3CRV at $3.9m and stkcvxFRAX3CRV-f at $1.3m.
This pool also remains largely backed by stablecoin assets.
Total debt remained unchanged at $16.6m.
WETH
The pool declined from $27m to $25.5m. The largest collateral assets are stETH (-$0.5m to $18.6m), stkcvxsteCRV (-$1.2m to $5.9m) and FRAX ($0.5m, unchanged).
The pool remains collateralized by mostly ETH or staked ETH assets.
Total debt declined from $22.2m to $20.8m.
FRAX
This pool has total collateral of $3.7m (-$0.1m), mostly in the form of stkcvxFRAX3CRV-f ($1.4m) and stkcvxgusd3CRV ($1.2m) as well as yvDAI ($0.8m).
Total debt stands at $3m.
WBTC
This is a relatively small pool with $0.5m in deposits (denominated in stETH) and $0.4m in loans. It’s heavily concentrated with one depositor and one borrower.
wstETH
Demand for borrowing stETH continues to be subdued with no active credit accounts. This is a continuation from the previous week.