Weekly RiskDAO report 17 Jan ‘23

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


Crypto prices were green across the board over the last week. BTC touched $21k and $SOL has 2x’ed from their recent lows.

Ethereum liquid staking protocols continue to dominate headlines. There are a number of positive trends, such as Metamask integrating Lido & Rocketpool. Frax is receiving a fair amount of attention given the double-digit growth (+24%) of their LSD “frxETH” over the last 7 days (coming from a low base, however). frxETH is a collateral asset on FraxLend and thus can contribute to the growth of FRAX.

Protocols will want to grow market share of their liquid staking derivatives (LSDs) through promoting DeFi interoperability and utility. Some lending protocols are starting to focus on LSD as collateral asset: Myso Finance is launching on mainnet with rETH vaults. rETH is also a collateral asset on MakerDAO. Lido staked Ether is eligible collateral on Aave and by extension Morpho, Gearbox, Euler, MakerDAO, Angle and dForce.

The FTX liquidator got rekt on Aave.

HECO-based lending market LendHub got exploited for $6m. The protocol replaced a collateral token with an updated version but forgot to delete the old one. According to SlowMist “The attackers were able to manipulate the minting and redeeming process in the old market while borrowing in the new market, ultimately stealing significant protocol funds from the new market.”

Dashboard Highlights

The cap utilization of gOHM has slightly decreased to 86%.

The VAR for the worst day simulation stands at zero. Current MCRs are at recommended levels (ETH-Vault) or well above them (all other).

The weight of $VST in the VST-FRAX remains at 70%.

Total pool collateral is hovering around $22m. gOHM remains the #1 collateral asset accounting for $13.6m or 63% of total collateral base, followed by sGLP which stands at $4.6m (21.1% of total collateral).

The MCR (based on existing minting caps) for DPX has recovered back above the recommended levels.

1 Like