Weekly RiskDAO report 14 Feb ‘23

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


MakerDAO announced SparkLend, a protocol that builds on Aave v3, is owned by Maker governance and will become one of Maker’s first SubDAOs. Spark Lend will integrate with Maker’s D3M and have a debt ceiling of 200m DAI. The launch date is expected for April 2023 and 10% of gross profit will be paid to Aave. Spark Lend also integrates with Element Finance and Sense Protocol to offer fixed rate lending.

The SEC is clamping down on staking-as-a-service operated by US exchanges which forced Kraken to agree to a $30m settlement and shut down the service. Coinbase CEO appears more resolute to defend his stance that ETH staking is not a security and is prepared to go to court.

Paxos, issuer of USDP and BUSD stablecoins, has been notified by the NYDFS to stop minting new BUSD. Paxos will service BUSD redemptions to minimise disruption. However, the news send ripples through the stablecoin space. Paxos is also likely to be sued by the SEC over allegations that BUSD constitutes a security.

Arbitrum lending protocol dForce was exploited to the tune of $3.65m.

Dashboard Highlights

The cap utilization of gOHM is steady at 92%, largely unchanged from the previous week.

The VAR for the worst day simulation stands at zero. Current MCRs are at or above recommended levels.

The weight of $VST in the VST-FRAX has decreased from 79% to 72%.

Total pool collateral fell from $22.5m to $20.5m. gOHM remains the #1 collateral asset accounting for $14m or 68% of total collateral base, followed by sGLP which stands at $2.8m (13% of total collateral), down from $4.1m last week.

Total debt amounts to $8.5m (-$0.8m) which equates to a utilization rate of 41%. The Top 10 debtors account for 49% of the total debt volume.

RiskDAO recommended to the Vesta team to reduce the DPX mint cap to $3m which the team has agreed with and will implement.

1 Like