[Gauntlet] Weekly Market Update: Ethereum USDC (7/21/23 - 7/28/23)
Gauntlet would like to provide the community with an update on metrics from the Ethereum USDC comet over the past week and will include any relevant recommendations.
Simple Summary
- Gauntlet has an outstanding proposal to increase supply caps for WBTC, LINK, and UNI. Otherwise, Gauntlet recommends no additional changes at this time.
- Based on community preferences, we will more aggressively move to deprecate the v2 market in favor of v3.
- USDC borrows are down 0.51%.
- USDC supply is down 1.88%. However, on the date of this post, a user deposited $45.4M USDC, increasing the USDC supply by 9.8%. This will be included in the market update next week.
- The comet accumulated $43.6k USDC reserves over the past week, with an average reserve growth of 14.1%.
- The comet distributed $230.3k COMP rewards over the past week, for a Net Protocol Profit of -$186.7k.
Analysis
Below are metrics of the market and parameters over the past week.
Market Growth
Total Collateral (USD) is down 0.77%, from $748.65M to $742.87M.
USDC Borrows are down 0.51%, from $363.31M to $361.45M.
USDC Supply is down 1.88%, from $387.69M to $380.41M. However, on the date of this post, a user deposited $45.4M USDC, increasing the USDC supply by 9.8% to $425.63M. This will be included in the market update next week.
Supply Caps
As seen above, WBTC (75.2%), COMP (90.5%), LINK (100%), and UNI (100%), all have supply cap utilizations > 75%. We have an outstanding proposal to increase supply caps for WBTC, LINK, and UNI, and we recommend not increasing the COMP supply cap due to lower liquidity.
Above is a time series of supply cap utilization for each asset over the past week.
Utilization and Reserves
The minimum USDC utilization was 93.7%, and the maximum was 97.9%.
The minimum USDC reserve growth was 4.4%, and the maximum was 18.3%. The average USDC reserve growth was 14.1%.
The comet steadily accumulated $43.6k USDC reserves, while distributing $230.3k COMP rewards, for a weekly Net Protocol Profit of -$186.7k.