Gauntlet would like to provide the community with an update on metrics from the Moonwell Base Market since launch:
Simple Summary
- BASE Chain circulating token TVL is at $342M.
- Total Borrows for Moonwell protocol have increased by 36% with Moonwell BASE adding ~$8M.
- Total Supplys for Moonwell protocol have increased by 40% with Moonwell BASE adding ~$20M.
- 37% of Moonwell Base’s user supply balances are not borrowing on the protocol.
- Approximately 63% of borrowed positions on BASE are recursive, which is 50% higher proportionally compared to the Moonbeam marketplace (42%).
- With current protocol borrow usage, interest rates, and reserve factors, we are projecting $120k in annualized reserves.
- Utilization Rate for WETH briefly increased to 94% but has decreased back to the kink (75%) recently.
Analysis
Below are metrics of the market and parameters since the release of the protocol:
BASE Chain Ecosystem
BASE Chain has seen a recent uptick in circulating token TVL which increased from $260M to $342M the past day.
BASE Chain TVL
A large amount of that growth can be attributed to Aerodrome in which its TVL has grown $160M since yesterday:
DEX Aerodrome TVL
USDbC Market Cap on BASE Chain
Circle has announced its plans to introduce native USDC on BASE soon. Gauntlet will monitor native USDC’s token roll-out and assist in the potential transition from bridge to native token on Moonwell. Presently, Gauntlet is collaborating with the Arbitrum ecosystem to transition from bridged USDC to Native USDC. You can find their preliminary report here.
Market Depth Liquidity
| Assets | 10% Liquidity Depth | 10% Liquidity Depth ($) | 25% Liquidity Depth | 25% Liquidity Depth ($) | Circulating Supply |
|---|---|---|---|---|---|
| WETH | 2200 | $3,711,752.00 | 6300 | $10,629,108.00 | 58,344 |
| USDbC | 3500000 | $3,500,000.00 | 11000000 | $11,000,000.00 | 105,846,726 |
| DAI | 500000 | $500,000.00 | 600000 | $600,000.00 | 20,845,538 |
| cbETH | 630 | $1,115,811.90 | 2000 | $3,542,260.00 | 19,314 |
Market Depth Liquidity and circulating supply have significantly increased since our last update earlier in the month.
Moonwell Protocol Growth
Since the release of the Moonwell BASE market, overall Supply and Borrow Balances have seen a large increase of 40% and 36%, respectively.
Moonwell Supply and Borrow Balances
Link to chart.
Moonwell BASE Protocol Market Stats
Moonwell BASE Supply and Borrow Balances
Link to chart.
Supply Balance by User Type
75% of Supply Balances are either Supply Only or Recursive within the protocol.
Borrow Balance by User Type
LST Yield Farming is non-existent in the protocol. Most borrow positions are either Borrowing Non-Stables or Recursive which represents recursively supplying and borrowing the same asset.
Top Borrow Addresses - Borrow Balance & Borrow Usage
The second to sixth largest borrowing positions on the protocol are employing recursive strategies.
Collateralization Ratio by Asset
Volatile assets WETH and cbETH have AVG collateralization ratios above 200%.
Utilization Rate by Assets
Utilization Rate for WETH briefly reached 94% after a large whale moved into the protocol, but the WETH liquidity pool has since decreased to the kink (75% utilization).
Moonwell Base Annualized Reserves
Total Annualized Reserves are projected at $120k based on current borrow usage, interest rates, and reserve factors. 90% of those annualized reserves are being generated via WETH.
Cumulative Returns by Asset - Timeseries
Next Steps
- Gauntlet will continue to monitor the market
- Gauntlet will provide Risk Recommendations next week for the Moonwell BASE market.