[Gauntlet] Weekly Market Updates: Arbitrum USDC

Gauntlet · July 31, 2023, 9:56pm

[Gauntlet] Weekly Market Update: Arbitrum USDC (7/21/23 - 7/28/23)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum USDC comet over the past week and will include any relevant recommendations.

Simple Summary

Gauntlet recommends decreasing the daily COMP supply rewards from 34.73 to 10 (~$614k annual savings). Compound Labs is working on launching a native USDC comet on Arbitrum, to migrate liquidity from this comet to be deprecated to the new comet.
USDC borrows are up 33.6%.
USDC supply is down 6.4%.
The comet lost $663 in USDC reserves over the past week, with an average reserve growth of -56.4%.
The comet distributed $19.17k COMP rewards over the past week, for a Net Protocol Profit of -$19.83k.

Analysis

Below are metrics of the market and parameters over the past week.

Market Growth

Total Collateral (USD) is up 38.0%, from $6.08M to $8.39M.

USDC Borrows are up 33.6%, from $2.32M to $3.10M.

USDC Supply is down 6.4%, from $16.28M to $15.24M.

Supply Caps

Above are the current supply cap utilizations for each collateral asset.

Above is a time series of supply cap utilization for each asset over the past week.

Utilization and Reserves

The minimum USDC utilization was 14.1%, and the maximum was 21.2%.

The minimum USDC reserve growth was -62.9%, and the maximum was -44.9%. The average USDC reserve growth was -56.4%.

The comet lost $663 in USDC reserves while distributing $19.17k COMP rewards, for a weekly Net Protocol Profit of -$19.83k.

Recommendations

Gauntlet recommends decreasing the daily COMP supply rewards from 34.73 to 10 (~$614k annual savings). Compound Labs is working on launching a native USDC comet on Arbitrum, to migrate liquidity from this comet to be deprecated to the new comet.

Currently, the Earn Distribution is 6.09%, with $14.05M USDC supply and 31.27% utilization. The USDC supply is overly incentivized, losing $19.17k daily COMP rewards. Given the current $14.05M USDC supply, decreasing the daily COMP supply rewards to 10 will dilute the Earn Distribution to 1.77%, resulting in a Net Earn APR of 2.78%. If the USDC supply decreases to $10M, the resulting Earn Distribution will increase to 2.48%, resulting in a Net Earn APR of 3.49%, utilization of 43.9%, and Borrow APR of 3.04%.

Gauntlet · August 4, 2023, 1:52pm

Gauntlet Weekly Market Update: Arbitrum USDC (7/28/23 - 8/3/23)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum USDC comet over the past week.

Simple Summary

In our previous update, we recommended decreasing the daily COMP supply rewards from 34.73 to 10 (~$614k annual savings), due to low utilization and the upcoming launch of a native USDC comet on Arbitrum. We will create an on-chain proposal next week.
USDC Borrows are up 61.6%, from $3.10M to $5.01M.
USDC Supply is down 9.4%, from $15.24M to $13.80M.
USDC utilization increased from 20.2% to 36.3%.
The comet lost $551 USDC reserves, with an average reserve growth of -31.8%.
The comet distributed $16.30k COMP rewards for a weekly Net Protocol Profit of -$16.85k.

Analysis

Below are metrics of the market and parameters over the past week.

Market Growth

Total Collateral (USD) is up 48.2%, from $7.97M to $11.81M.

USDC Borrows are up 61.6%, from $3.10M to $5.01M.

USDC Supply is down 9.4%, from $15.24M to $13.80M.

USDC utilization increased from 20.2% to 36.3% due to increased USDC borrows and decreased USDC supply.

Supply Caps

As seen above, ARB (100%) is the only asset with a supply cap utilization > 75%.

Above is a time series of supply cap utilization for each asset over the past week.

Utilization and Reserves

The minimum USDC utilization was 20.2%, and the maximum was 36.3%.

The minimum USDC reserve growth was -47.3%, and the maximum was -17.3%. The average USDC reserve growth was -31.8%.

The comet lost $551 USDC reserves while distributing $16.30k COMP rewards for a weekly Net Protocol Profit of -$16.85k.

Gauntlet · August 7, 2023, 11:32pm

We put up the on-chain proposal here . Voting begins in 1 day and lasts for 3 days.

Gauntlet · August 12, 2023, 2:29am

[Gauntlet] Weekly Market Update: Arbitrum USDC (8/4/23 - 8/10/23)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum USDC comet over the past week.

Simple Summary

USDC Borrows are unchanged, staying constant at $5.01M.
USDC Supply is down 4.9%, from $13.80M to $13.12M.
USDC utilization increased from 35.8% to 37.9%.
The comet lost $438 USDC reserves, with an average reserve growth of -16.4%.
The comet distributed $13.67k COMP rewards for a weekly Net Protocol Profit of -$14.11k.

Analysis

Below are metrics of the market and parameters over the past week.

Market Growth

Total Collateral (USD) is up 3.0%, from $12.04M to $12.40M.

USDC Borrows are unchanged, staying constant at $5.01M.

USDC Supply is down 4.9%, from $13.80M to $13.12M.

USDC utilization increased from 35.8% to 37.9%.

Supply Caps

As seen above, ARB (100%) is the only asset with a supply cap utilization > 75%.

Above is a time series of supply cap utilization for each asset over the past week.

Utilization and Reserves

The minimum USDC utilization was 34.8%, and the maximum was 39.2%.

The minimum USDC reserve growth was -19.7%, and the maximum was -13.2%. The average USDC reserve growth was -16.4%.

The comet lost $438 USDC reserves while distributing $13.67k COMP rewards for a weekly Net Protocol Profit of -$14.11k.

Gauntlet · August 18, 2023, 5:24pm

[Gauntlet] Arbitrum v3 USDC Update (08/11/2023 - 08/17/2023)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum v3 USDC comet over the past week.

Simple Summary

USDC Borrows are down 20.26%, from $5.01M to $4.0M.
USDC Supply is down 18.63%, from $13.12M to $10.68M.
USDC utilization increased 7.11%, from 38.2% to 40.9%.
The minimum USDC reserve growth was -14.1%, and the maximum was 2.7%. The average USDC reserve growth was -7.1%.
The comet lost $0.2k USDC reserves while distributing $12.38k COMP rewards for a weekly Net Protocol Profit of -$12.57k.

Analysis

Below are metrics of the market and parameters over the past week. Note that collateral supply values are normalized to end date token prices, in order to get an idea of intentional user behavior as opposed to fluctuations in underlying token prices.

Market Growth

Total Collateral (USD) is down 7.77%, from $11.4M to $10.51M.

USDC Supply is down 18.63%, from $13.12M to $10.68M.

USDC Borrows are down 20.26%, from $5.01M to $4.0M.

USDC utilization increased 7.11%, from 38.2% to 40.9%.

Above are the current supply cap utilizations for each collateral asset.

Above is a time series of supply cap utilization for each asset over the past week.

Utilization and Reserves

The minimum USDC utilization was 38.2%, and the maximum was 52.5%.

The minimum USDC reserve growth was -14.1%, and the maximum was 2.7%. The average USDC reserve growth was -8.1%.

The comet lost $0.2k USDC reserves while distributing $12.38k COMP rewards for a weekly Net Protocol Profit of -$12.57k.

Gauntlet · August 25, 2023, 8:45pm

[Gauntlet] Arbitrum v3 USDC Update (08/18/2023 - 08/24/2023)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum v3 USDC comet over the past week.

Simple Summary

USDC Borrows are down 8.26%, from $4.0M to $3.67M.
USDC Supply is down 27.37%, from $10.68M to $7.76M.
USDC utilization increased 26.32%, from 37.4% to 47.3%.
The minimum USDC reserve growth was -19.3%, and the maximum was -0.3%. The average USDC reserve growth was -7.1%.
The comet lost $0.15k USDC reserves while distributing $2.96k COMP rewards for a weekly Net Protocol Profit of -$3.11k.

Analysis

Below are metrics of the market and parameters over the past week. Note that collateral supply values are normalized to end date token prices, in order to get an idea of intentional user behavior as opposed to fluctuations in underlying token prices.

Market Growth

Total Collateral (USD) is down 1.06%, from $9.88M to $9.78M.

USDC Supply is down 27.37%, from $10.68M to $7.76M.

USDC Borrows are down 8.26%, from $4.0M to $3.67M.

USDC utilization increased 26.32%, from 37.4% to 47.3%.

Supply Caps

Above are the current supply cap utilizations for each collateral asset.

Above is a time series of supply cap utilization for each asset over the past week.

Utilization and Reserves

The minimum USDC utilization was 35.0%, and the maximum was 49.7%.

The minimum USDC reserve growth was -19.3%, and the maximum was -0.3%. The average USDC reserve growth was -7.1%.

The comet lost $0.15k USDC reserves while distributing $2.96k COMP rewards for a weekly Net Protocol Profit of -$3.11k.

Gauntlet · September 1, 2023, 11:03am

[Gauntlet] Arbitrum v3 USDC Update (08/25/2023 - 08/31/2023)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum v3 USDC comet over the past week.

Simple Summary

USDC Borrows are up 9.80%, from $3.67M to $4.03M.
USDC Supply is down 17.59%, from $7.76M to $6.39M.
USDC utilization increased 33.24%, from 47.3% to 63.0%.
The minimum USDC reserve growth was -3.0%, and the maximum was 14.8%. The average USDC reserve growth was 4.4%.
The comet accumulated $0.13k USDC reserves while distributing $2.95k COMP rewards for a weekly Net Protocol Profit of $-2.82k.

Analysis

Below are metrics of the market and parameters over the past week. Note that collateral supply values are normalized to end date token prices, in order to get an idea of intentional user behavior as opposed to fluctuations in underlying token prices.

Market Growth

Total Collateral (USD) is up 7.84%, from $9.66M to $10.41M.

USDC Supply is down 17.59%, from $7.76M to $6.39M.

USDC Borrows are up 9.80%, from $3.67M to $4.03M.

USDC utilization increased 33.24%, from 47.3% to 63.0%.

Supply Caps

Above are the current supply cap utilizations for each collateral asset.

Above is a time series of supply cap utilization for each asset over the past week.

Utilization and Reserves

The minimum USDC utilization was 47.3%, and the maximum was 66.1%.

The minimum USDC reserve growth was -3.0%, and the maximum was 14.8%. The average USDC reserve growth was 4.4%.

The comet accumulated $0.13k USDC reserves while distributing $2.95k COMP rewards for a weekly Net Protocol Profit of $-2.82k.

Gauntlet · September 8, 2023, 12:16pm

[Gauntlet] Arbitrum v3 USDC Update (09/01/2023 - 09/07/2023)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum v3 USDC comet over the past week.

Simple Summary

USDC Borrows are down 18.62%, from $4.03M to $3.28M.
USDC Supply is down 36.86%, from $6.39M to $4.04M.
USDC utilization increased 28.93%, from 63.0% to 81.2%.
The minimum USDC reserve growth was 2.7%, and the maximum was 23.0%. The average USDC reserve growth was 14.9%.
The comet accumulated $0.43k USDC reserves while distributing $0.0k COMP rewards for a weekly Net Protocol Profit of $0.43k.

Analysis

Below are metrics of the market and parameters over the past week. Note that collateral supply values are normalized to end date token prices, in order to get an idea of intentional user behavior as opposed to fluctuations in underlying token prices.

Market Growth

Total Collateral (USD) is down 18.22%, from $9.86M to $8.06M.

USDC Supply is down 36.86%, from $6.39M to $4.04M.

USDC Borrows are down 18.62%, from $4.03M to $3.28M.

USDC utilization increased 28.93%, from 63.0% to 81.2%.

Supply Caps

Above are the current supply cap utilizations for each collateral asset.

Above is a time series of supply cap utilization for each asset over the past week.

Utilization and Reserves

The minimum USDC utilization was 63.0%, and the maximum was 84.9%.

The minimum USDC reserve growth was 2.7%, and the maximum was 23.0%. The average USDC reserve growth was 14.9%.

The comet accumulated $0.43k USDC reserves while distributing $0.0k COMP rewards for a weekly Net Protocol Profit of $0.43k.

Gauntlet · September 15, 2023, 4:28pm

[Gauntlet] Arbitrum v3 USDC.e Update (09/08/2023 - 09/14/2023)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum v3 USDC.e comet over the past week.

Simple Summary

USDC Borrows are down 29.52%, from $3.28M to $2.31M.
USDC Supply is down 26.27%, from $4.04M to $2.98M.
USDC utilization decreased 4.40%, from 81.2% to 77.6%.
The minimum USDC reserve growth was -11.1%, and the maximum was 24.3%. The average USDC reserve growth was 17.3%.
The comet accumulated $0.36k USDC reserves while distributing $0.0k COMP rewards for a weekly Net Protocol Profit of $0.36k.

Analysis

Below are metrics of the market and parameters over the past week. Note that collateral supply values are normalized to end date token prices, in order to get an idea of intentional user behavior as opposed to fluctuations in underlying token prices.

Market Growth

Total Collateral (USD) is down 23.69%, from $7.57M to $5.78M.

USDC Supply is down 26.27%, from $4.04M to $2.98M.

USDC Borrows are down 29.52%, from $3.28M to $2.31M.

USDC utilization decreased 4.40%, from 81.2% to 77.6%.

Supply Caps

Above are the current supply cap utilizations for each collateral asset.

Above is a time series of supply cap utilization for each asset over the past week.

Utilization and Reserves

The minimum USDC utilization was 74.0%, and the maximum was 93.0%.
The minimum USDC reserve growth was -11.1%, and the maximum was 24.3%. The average USDC reserve growth was 17.3%.

The comet accumulated $0.36k USDC reserves while distributing $0.0k COMP rewards for a weekly Net Protocol Profit of $0.36k.

Gauntlet · September 22, 2023, 2:25pm

[Gauntlet] Arbitrum v3 USDC Update (09/15/2023 - 09/21/2023)

Gauntlet would like to provide the community with an update on metrics from the Arbitrum v3 USDC comet over the past week.

Simple Summary

USDC Borrows are down 1.55%, from $1.99M to $1.95M.
USDC Supply is down 6.98%, from $2.88M to $2.68M.
USDC utilization increased 5.73%, from 77.6% to 82.1%.
The minimum USDC reserve growth was 2.8%, and the maximum was 23.1%. The average USDC reserve growth was 14.7%.
The comet accumulated $0.29k USDC reserves while distributing $0.0k COMP rewards for a weekly Net Protocol Profit of $0.29k.

Analysis

Below are metrics of the market and parameters over the past week. Note that collateral supply values are normalized to end date token prices, in order to get an idea of intentional user behavior as opposed to fluctuations in underlying token prices.