Hi All,
I believe I have discovered an issue with the USDC V3 protocol and/or dashboard. Currently, it appears the protocol is paying more to earners than the borrowers interest rate would imply. Specifically, this excess interest is reducing the USDC V3 reserves, as you can see in the table below from 12/6/22 to 12/8/22. This issue did not exist in October as reserves were increasing the difference between daily borrow and daily earn was positive.
The calculation used for Daily Borrow/Earn Amount is as follows:
Daily Borrow or Earn Amount= (Total Borrow or Earn)∙((1+APR)^(1⁄365)-1)
This is an estimate as it does not have full significant figures in the calculation, but it is close enough to see what is going on and is consistent with the change in Reserves.
Additionally, I am confused why the token reserves have not increased other than the $0.14 increase in ETH. This is surprising given the volatility and likely liquidations that have occurred (although I have not investigated whether or not any liquidations occurred). Is there an issue with the dashboard in reflecting the token reserves?
Please let me know if I missed anything.