Gauntlet is providing the community with a comprehensive Market Risk Update pertaining to the Moonwell markets, encompassing the latest developments subsequent to our previous recommendations.
Overall Moonwell Update
Summary
- Overall Market VaR and LaR across Moonriver, Moonbeam, and Base market are $0 and $1.4M respectively.
- Borrowing Power across all 3 markets is $37.5M. Borrowing Power is a measure of capital efficiency, it is the total available borrows based on collateral supplied to the protocol.
- Since October, the Base market has surpassed the Moonbeam market in terms of both the largest supply and borrow USD balances.
To see updated statistics, please see the live version of this graph here.
Base Market Update
Summary
- Our simulation model estimates VaR at $0 and LaR at $996k. Current market borrow usage is 76%.
- Since our last update on November 6th, WETH’s borrow balance has doubled, reaching $8.1M from $4M.
- cbETH’s supply balance increase 52% from $4.1M to $6.2M since the last update. USDbC’s supply balance has decrease by 14% from $1.7M to $1.4M.
- Since October, stablecoins (USDC, USDbC, and DAI) have seen increased utilization, with all three assets hovering around 80%. This surge in utilization is primarily due to heightened borrowing demand, driven by Moonwell BASE’s lower borrowing costs compared to the DeFi landscape, as highlighted in our recent post. The APR at 80% utilization stands at 3.6%.
- Gauntlet has implemented 2 Cap Guardians within the BASE market this past month, resulting in increased caps for both LSTs wstETH and rETH. Although rETH usage briefly surged above 75% in recent days, it has since dipped below this threshold in the past couple of days.
- Moonwell Base’s active users has grown by 1.2k since our last update.
- Average Annualized Reserves across all assets increased by 90% to 97k since our last market update. Average Borrow Interest Earned across all assets increased by 84% compared to 500k.
Asset Supply
This graph shows the time series of total supply of all assets.
To see updated statistics, please see the live version of this graph here.
Asset Borrows
This graph shows the time series of total borrow assets.
To see updated statistics, please see the live version of this graph here.
Utilization
This graph shows the utilization (borrow / supply) of all assets
To see updated statistics, please see the live version of this graph here.
Risky Borrower Snapshot
This graph shows a snapshot of the largest borrow positions on Moonwell BASE.
Here is a breakdown of their positions
To see updated statistics, please see the live version of this graph here.
Supply Cap Usage
This graph shows the supply cap usage (supply balance / supply cap) of all collateral assets
Borrow Cap Usage
This graph shows the supply cap usage (borrow balance / borrow cap) of all collateral assets
On-chain Liquidity
| Asset | Borrow Cap | Supply Cap | Borrow Cap Usage | Supply Cap Usage | DEX 25pct Slippage Token | DEX 25pct Slippage USD | Total Supply |
|---|---|---|---|---|---|---|---|
| rETH | 50 | 200 | 34.65% | 68.47% | 281 | $634,227.49 | 347 |
| cbETH | 1,000 | 4,000 | 60.39% | 73.32% | 1,110 | $2,418,787.55 | 19,206 |
| WETH | 6,300 | 10,500 | 64.29% | 56.17% | 3,325 | $6,870,209.91 | 31,905 |
| wstETH | 160 | 360 | 31.00% | 61.02% | 550 | $1,303,977.95 | 2,220 |
| DAI | 5,000,000 | 7,500,000 | 63.51% | 52.88% | 1,681,755 | $1,681,393.18 | 8,863,168 |
| USDC | 8,500,000 | 10,000,000 | 44.33% | 47.23% | 2,293,060 | $2,292,868.13 | 159,547,545 |
| USDbC | 4,000,000 | 5,000,000 | 29.99% | 29.48% | 2,243,318 | $2,243,130.19 | 75,415,791 |
Active User Growth on Moonwell BASE
To see updated statistics, please see the live version of this graph here.
Annualized Reserves and Borrow Interest Projections
*Average Performance since our last update in Nov 6th.
Annualized Borrow Interest by Assets
Annualized Reserves
Moonbeam Market Update
Simple Summary
- Our simulation model estimates VaR at $0 and LaR at $741k. Current market borrow usage is 79%.
- In line with the BASE market, stablecoins (USDC.wh, xcUSDT, and FRAX) have consistently sustained utilization rates at or above the kink threshold throughout the past month. These stablecoins have maintained an average borrowing APR rate of 6.8% since November 1st. The fluctuation in the borrowing rate can be traced back to the demand for market rates surpassing the existing kink APR rate of 4.9%. For a more comprehensive discussion on this topic, please refer to our post here.
- WETH.wh’s borrow balance has increased since our last update by 27% from $356k to $456k. WBTC.wh’s borrow balance decrease by 99% from $1.2M to $1k. A large WBTC.wh borrow position reduced their borrow balance from 36.8 to 0 but still maintains their supply of 123 WBTC.wh ($4.5M) on the protocol.
- WGLMR’s supply balance increase by 9.7% from $4.5M to $5M. USDC.wh’s supply balance has decrease 46% from $2.8M to $1.5M.
- No market has a borrow cap usage above 80%.
- Average Annualized Reserves across all assets increased by 6% to $227k since our last market update. Average Borrow Interest Earned across all assets increased by 9% to $1.2M.
Asset Supply
This graph shows the time series of total supply of all assets.
To see updated statistics, please see the live version of this graph here.
Asset Borrows
This graph shows the time series of total borrow assets.
To see updated statistics, please see the live version of this graph here.
Utilization
This graph shows the utilization (borrow / supply) of all assets
To see updated statistics, please see the live version of this graph here.
Borrow Cap Usage
This graph shows the supply cap usage (borrow balance / borrow cap) of all collateral assets
On-chain Liquidity
| Asset | Borrow Cap | Borrow Cap Usage | Borrow Cap Relative to On-chain Supply | Total Supply | DEX 25pct Slippage Token | DEX 25pct Slippage USD |
|---|---|---|---|---|---|---|
| WBTC.wh | 50 | 0.06% | 26.46% | 189 | 2 | $55,859 |
| xcDOT | 850,000 | 60.02% | 79.41% | 1,070,391 | 16,000 | $82,080 |
| FRAX | 5,250,000 | 61.47% | 98.69% | 5,319,872 | 95,000 | $95,000 |
| USDC.wh | 2,400,000 | 52.02% | 91.71% | 2,616,964 | 160,000 | $160,000 |
| xcUSDT | 1,300,000 | 77.42% | 119.62% | 1,086,801 | 160,000 | $160,000 |
| WGLMR* | 22,555,000 | 28.89% | 203.32% | 11,093,374 | 300,000 | $78,844 |
| WETH.wh | 500 | 44.91% | 23.75% | 2,105 | 23 | $46,653 |
Annualized Reserves and Borrow Interest Projections
Annualized Borrow Interest by Assets
Annualized Reserves
Moonriver Market Update
- Our simulation model estimates VaR at $0 and LaR at $425k. Current market borrow usage is 59%.
- WMOVR’s borrow balance has increased since our last update by 35% from $235k to $318k. xcKSM’s borrow balance decrease by 11% from $211k to $186k.
- WMOVR’s supply balance increase by 30% from $650k to $851k. xcKSM’s supply balance has decrease by 8% from $715k to $657k.
- No Asset has borrow cap usage above 80%.
- Total AVG Annualized Reserves increased by 33% ($8k) and Borrow Interest Earned increased by 32% ($33.6k).
- Average Annualized Reserves across all assets increased by 33% to $8k since our last market update. Average Borrow Interest Earned across all assets increased by 32% to $33.6k.
- The 25% market slippage for all assets has doubled since our last market review. Nonetheless, liquidity levels remain relatively low, and we will persist in monitoring the Moonriver ecosystem.
Asset Supply
This graph shows the time series of total supply of all assets.
To see updated statistics, please see the live version of this graph here.
Asset Borrows
This graph shows the time series of total borrow assets.
To see updated statistics, please see the live version of this graph here.
Utilization
This graph shows the utilization (borrow / supply) of all assets
To see updated statistics, please see the live version of this graph here.
Borrow Cap Usage
This graph shows the supply cap usage (borrow balance / borrow cap) of all collateral assets
On-chain Liquidity
| Asset | Borrow Cap | Borrow Cap Usage | Borrow Cap Relative to On-chain Supply | Total Supply | DEX 25pct Slippage Token | DEX 25pct Slippage USD |
|---|---|---|---|---|---|---|
| FRAX | 300,000 | 78.80% | 5.50% | 5,450,958 | 43,000 | $43,000 |
| xcKSM | 11,000 | 69.06% | 21.55% | 51,034 | 2,500 | $60,825 |
| WMOVR | 76,000 | 63.55% | 30.82% | 246,593 | 7,000 | $47,810 |
