Weekly RiskDAO report 8 Sept ‘23

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

Summary

Coinshares reports that fund outflows continue to the tune of $340m over the last 7 weeks. This is a reversal of the rather favorable inflow momentum in the preceding weeks.

MakerDAO’s NewChain could be a Solana if Rune gets his way. Choosing the Solana codebase for the new app chain has caused a fair amount of public debate and also led Vitalik Buterin to rage-sell MKR token. MKR is up by 6% over the last two weeks, however, even as defaults in MakerDAO’s RWA portfolio highlight the risks associated with the RWA strategy.

Aave’s overcollateralized stablecoin GHO continues its struggle to hold the USD-peg. Currently trading at $0.972, the community is working diligently to improve the profile of GHO and reinstall the USD-peg

Updates

Gearbox deployed two new assets: crvUSD and triCRV (crvUSD/ETH/CRV Curve v2 LP tokens). Our dashboard supports these assets and will display relevant data by the weekend. So far these assets are not being used by users.

Stablecoin monitoring

GUSD liquidity recovered from $0.7m to $2.2m. sUSD liquidity continues to drop from $7.8m to $6.9m. LUSD liquidity experienced a sharp decline from $13.2m to $5.1m. sUSD backing recovered from 387% to 437%. LUSD backing stayed largely flat around 230%.

There are no significant oracle deviations between DEX and CEX prices.

Watchlist

stETH remains the heavyweight collateral across Gearbox with a share of 54.8% (+350bps vs 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 extended last weeks’ decline, from $5.3m to $4.7m. yvDAI is the #1 asset at $2.3m (-$0.5m), followed by stkcvxcrvPlain3andSUSD at $1.2m (unch) and stkcvxLUSD3CRV-f at $0.7m.

Total debt fell from $4.5m to $4.1m.

The pool remains predominantly collateralized by stablecoins.

USDC

Total pool size continued its downward trajectory and declined from $3.8m to $2.6m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $1.2m (unch), followed by stkcvxLUSD3CRV-f at $0.7m (-$1m) and USDC at $0.4m (unch). stkcvxFRAX3CRV-f disappeared entirely from the pool, accounting for another $0.2m in outflows.

This pool also remains largely backed by stablecoin assets.

Total debt fell from $3.2m to $2.2m.

WETH

The pool amount decreased from $10.9m to $10.4m. The largest collateral assets are stETH (-$0.5m to $9.7m), FRAX (unchanged at $0.4m) and yvWETH at $0.2m (also unchanged).

The pool is 93% collateralized by stETH.

Total debt fell from $8.7m to $8.3m.

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 a continuation from the previous weeks.