Weekly RiskDAO report 24 Jan ‘23

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

Summary

Last week, MakerDAO made headlines again as GUSD takes center-stage as questions arise about Gemini’s future: Gemini Earn has granted loans worth $900m to Genesis which is part of DCG’s bankruptcy discussions. Gemini is also the issuer of the GUSD stablecoin to which the MakerDAO PSM has a $500m exposure. On 19 January, MakerDAO tokenholders were polled whether to keep this arrangement or to reduce the GUSD PSM debt ceiling to nil. The vote finished narrowly in favor of keeping the status quo (50.85% of all votes). The reduction of the debt ceiling would have tested Gemini’s fiat liquidity and might have forced a bank-run with unknown consequences. Earlier this week Tyler Winklevoss had posted a lengthy post in the MakerDAO forum, along with subsequent Q&A in their Discord, in an attempt to avoid GUSD FUD.

In addition, Paxos is trying to promote its USDP stablecoin by increasing the MakerDAO PSM debt ceiling to $1.5bn from the current $0.5bn. Paxos is offering to share 45% of the Federal Funds Rate (currently at 4.3%) with MakerDAO which could add up to a total of $29m in extra revenue.

Avi Eisenberg gets formally charged for market manipulation by the SEC, as he is awaiting transfer to a federal prison in NYC. The SEC mentions that he manipulated the $MNGO token “…, a so-called governance token offered and sold as a security on the crypto platform Mango Markets.”

Euler lists Coinbase’s $cbETH as collateral asset.

Dashboard Highlights

The cap utilization of gOHM has slightly increased from 86% to 89%.

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 remains at 70%.

Total pool collateral is hovering around $22m. gOHM remains the #1 collateral asset accounting for $14m or 63% of total collateral base, followed by sGLP which stands at $4.2m (19% of total collateral) which is a decline from $4.6m last week.

Total debt amounts to $9.2m which equates to a utilization rate of 41%. The Top 10 debtors account for 44% of the total debt volume.

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