Gauntlet Weekly Market Update: Ethereum WETH (7/28/23 - 8/3/23)
Gauntlet would like to provide the community with an update on metrics from the Ethereum WETH comet over the past week.
Simple Summary
- Gauntlet recently recommended the following changes in this forum post:
- Increase storefront price factor from 50% to 100%.
- Decrease liquidation penalty from 5% to 2.5%.
- Decrease the borrow interest rate curve lower slope from 0.51 to 0.37.
- Increase COMP supply distribution from 38 to 70.
- WETH borrows are up 7.3%, from $43.13M to $46.28M.
- WETH supply is up 4.0%, from $94.98M to $98.77M.
- WETH utilization has increased from 43.6% to 46.9%.
- The comet accumulated $6.83k WETH reserves over the past week, with an average reserve growth of 18.2%.
- The comet distributed $20.87k COMP rewards over the past week, for a Net Protocol Profit of -$14.04k.
Analysis
Below are metrics of the market and parameters over the past week.
Market Growth
Collateral Time Series
Total Collateral (USD) is up 10.5%, from $55.06M to $60.82M.
WETH Borrows Time Series
WETH borrows are up 7.3%, from $43.13M to $46.28M.
WETH Supply Time Series
WETH supply is up 4.0%, from $94.98M to $98.77M.
WETH utilization has increased from 43.6% to 46.9%.
Supply Caps
As seen above, wstETH (44.7%) and cbETH (0.8%) both have supply cap utilizations < 75%.
Above is a time series of supply cap utilization for each asset over the past week.
Utilization and Reserves
The minimum WETH utilization was 43.6%, and the maximum was 57.1%.
The minimum WETH reserve growth was 12.4%, and the maximum was 28%. The average WETH reserve growth was 18.2%.
The comet steadily accumulated $6.83k WETH reserves, while distributing $20.87k COMP rewards, for a weekly Net Protocol Profit of -$14.04k.