Weekly RiskDAO report 9 June ‘23

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


Binance has been served with a 136-page lawsuit by the SEC. The document largely claims that Binance operated an unregistered securities exchange in the US, which was backed up with leaked statements from CZ and Binance’s chief compliance officer. In the wake of the announcement, markets dumped and experienced the highest amount of long liquidations ($320m) over the last three months. The lawsuit also classifies a number of Altcoins as securities, such as SOL, Atom, ADA, MATIC, AXS and many more. Binance published a response which criticizes the SEC’s behavior and can be found here.

After Binance, Coinbase also got entangled in another SEC fight after the agency formally accused the company of running an unregistered securities exchange.

There are rumours CEX Gate.io has been impacted by the Multichain incident which Gate.io refutes. ETH, BTC and stablecoin deposits on Gate.io have dropped by 14% ($124m) over a 48 hour-period late last week according to CryptoQuant.

BKEX, another CEX, announced that some user funds on the platform were involved in money laundering activities. BKEX is currently cooperating with the authorities for evidence collection and has temporarily suspended withdrawals to facilitate the investigation.

LST-backed stablecoin project UnshETH has become the latest victim of compromised deployer private keys which resulted in 350 stolen ETH. ETH withdrawals have been emergency paused on.

Stablecoin monitoring

GUSD liquidity stayed largely flat around $11.9m. sUSD liquidity recovered from $17.8m back to $18.1m. LUSD liquidity increased from $21m to $22m. sUSD backing fell from 412% to 380%. LUSD backing stayed flat around 258%.

There are no significant oracle deviations between DEX and CEX prices. The only deviation standing out is the sUSD CEX price which is 6.1% below the oracle price.


stkcvxcrvPlain3andSUSD has an outsized share within the collateral pool as it accounts for 35% (unchanged) 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 stayed flat at $12.1m. stkcvxcrvPlain3andSUSD remains the #1 asset at $7.2m (unchanged), followed by stkcvxgusd3CRV at $2.9m (unchanged) and yvDAI at $1.2m (unchanged).

Total debt also remained unchanged at $10.2m.

The pool remains predominantly collateralized by stablecoins.


Total pool collateral declined from $18.5m to $16m, with the largest collateral assets being stkcvxcrvPlain3andSUSD at $9.6m, followed by stkcvxgusd3CRV at $3.8m and stkcvxFRAX3CRV-f at $1.3m.

This pool also remains largely backed by stablecoin assets.

Total debt fell from $15.1m to $13.5m.


The pool amount increased marginally from $19m to $19.4m. The largest collateral assets are stETH (+$0.4m to $17.2m), stkcvxsteCRV ($1.2m, unchanged) and FRAX ($0.5m, unchanged).

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

Total debt increased from $15.3m to $15.7m.


This pool has total collateral of $2.6m (unchanged), mostly in the form of stkcvxgusd3CRV

($1.8m) & yvDAI ($0.8m).

Total debt stands at $2.2m.


This is a relatively small pool with $0.4m in deposits (denominated in stETH) and $0.3m in loans. It’s heavily concentrated with one depositor and one borrower.


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