Weekly RiskDAO report 6 Jan ‘23

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

Summary

Maple Finance & Pool Delegate M11 have distributed reimbursements in the form of $MPL token for the Orthogonal Trading default. Orthogonal caused the first major credit default in the unsecured lending sector. Lenders are now holding $MPL as a form of compensation for material losses in USDC and WETH.

Dopex, a major DeFi protocol on Arbitrum, has released a summary blogpost on the potential of OptionFi (aka OpFi). Among the different themes, the write-up introduces put-based lending: e.g. borrowers deposit ETH collateral and buy an ETH put option for the duration of the loan. These novel types of borrowing models are interesting and we will follow developments.

Kaiko Research published an in-depth report on GUSD, including CEX & DEX data.

Stablecoin monitoring

GUSD & sUSD liquidity increased slightly to $16m and $26m. LUSD liquidity decreased to $55m. sUSD & LUSD backing both improved from 420% to 470% and 230% to 240%, respectively.

DEX liquidity for all other stablecoins remained largely unchanged.

CEX prices for GUSD differ materially from DEX prices (-7.9%). However, CEX liquidity for GUSD is very low.

Pools summary (weekly comparison)

DAI

Total pool size decreased from $20.9m to $18.5m, driven by yvDAI (-$2.4m). The two largest collateral assets are: stkcvxcrvPlain3andSUSD ($10m) and stkcvxgusd3CRV ($3.15m), followed by yvDAI ($2.9m).

Total debt also decreased by $2m to $15.6m.

The pool remains predominantly collateralized by stablecoins.

USDC

Total pool collateral decreased by $2.3m to $28.7m, with the two largest collateral assets being stkcvxcrvPlain3andSUSD ($15.7m) & stkcvxgusd3CRV ($3.56m). stkcvxLUSD3CRV-f decreased by $1.4m to $3.3m.

This pool also remains large backed by stablecoin assets.

WETH

The pool experienced an increase from $22.6m to $23.6m. The largest collateral assets are stETH ($11.7m), stkcvxsteCRV ($5.6M) and yvWETH ($4m).

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

CEX prices for stETH deviate sharply from DEX prices with a difference of -6.5%. stETH however is a typical DEX token with very little CEX liquidity.

WBTC

No material change compared to the previous week. Total collateral pool size stands at $0.11m and is dominated by WBTC ($84k).

wstETH

No material change compared to the previous week. Total collateral amounts to $0.9m which is entirely backed by stkcvxsteCRV.

Summary

Current risk parameters are on par with our models.

We continue to closely monitor stablecoin liquidity.

Additional stats, updated daily, are available in our dashboard at https://gearbox.riskdao.org/