Simple Summary
Arbitrum Compound v3 USDC was launched on 5/16/23, with 34.73 daily COMP rewards allocated to USDC suppliers and 0 COMP rewards allocated to borrowers.
In the 3 weeks of existence, the protocol has accumulated $8.82M USDC supply and $786k worth of borrows, for a utilization of 8.92%.
Given that Arbitrum is now offering native USDC, we will refrain from recommendations to increase rewards for this Arbitrum USDC Comet.
Analysis
Arbitrum Compound v3 USDC was launched on 5/16/23, with 34.73 daily COMP rewards allocated to USDC suppliers and 0 COMP rewards allocated to borrowers.
Below are time series of USDC Supply, Collateral Supply, and USDC Borrows since the deployment.
As seen in the time series charts and the above snapshot of the current market, few borrowers have joined the comet, despite plenty of borrowable USDC and low borrow APR. However, the protocol has only been deployed for 3 weeks.
Note that under the current IR curve, reserve growth is only positive between 50%-85% utilization. However, due to the low TVL, the losses in reserves are extremely minimal compared to the losses in daily COMP supply distributions, as shown below.
In the last ~3 weeks, the protocol has lost $600 in USDC reserves, relative to ~$28k in COMP distributions.
Given that Arbitrum is now offering native USDC, we will refrain from recommendations to increase rewards for this Arbitrum USDC Comet.