Cointime

Cointime

Download App
iOS & Android

ON–186: Stablecoins Mega Issue

Original Author: Spencer Noon
Original Link: https://ournetwork.substack.com/p/ournetwork-issue-186
All rights belong to the original author. If there are any copyright concerns, please contact for removal.


Stablecoins 💰

👥 Ethan Chan | Website | Dashboard

📈 Tron ($590B) surpasses Ethereum ($478B) in single directional stablecoin volume in August

  • On-chain stablecoin volume has remained steady for the past 6 months, with Tether remaining dominant with $822B in (single directional) volume in August, with USDC remaining in 2nd place with $292B in volume, and DAI being a distant third at $23B. Note: Single Directional Volume is an approach to reduce the double-counting observed when used "total_volume". This approach constructs a graph of transfers between each address involved in a transaction and uses the largest amount transferred from/to a wallet as the volume for that transaction.

Source: Allium

  • In the month of August, USDT did 1.1B transactions with USDC at a distant second with 79M transactions. The data suggests a much smaller average transaction size on USDT versus USDC, reflective of the different regions each stablecoin serves.

Source: Allium

  • Stablecoin usage on Tron ($590B) continues to have strong (single directional) volume when measured against Ethereum ($478B).

Source: Allium

② Curve Finance 🌈

👥 nagaking | Website | Dashboard

📈crvUSD maintains $115M supply, provides 25%+ of Curve profits

  • After launching in May 2023, crvUSD supply has grown to >$100M, maintaining a steady supply of ~$115M through September. crvUSD is minted against crypto collateral and uses an AMM to manage collateral composition, enabling gradual "soft" liquidation and de-liquidation as prices change. wstETH remains the most used collateral (55M crvUSD), followed by wBTC (35M), sfrxETH (11M), wETH (5M), and tBTC (2M). crvUSD continues to hold a tight peg against USD, deviating <$0.001 over 55% of the time.

Source: curvemonitor.com; CoinGecko API; Curve Research

  • crvUSD fees have become a significant source of revenue for Curve Finance. crvUSD borrowers pay a variable rate for the duration of their loan, averaging 3-5% annualized. Over the last 4 weeks, crvUSD fees have accounted for 25.6% of Curve DAO's total revenue ($328k of $1.227M).

Source: curvemonitor.com

  • In addition to AMM-based collateral management and dynamic interest rates, crvUSD uses multiple "peg keepers" to stabilize its value. Peg keepers mint or burn crvUSD to stabilize its price versus other stablecoins. By doing so, peg keepers also earn revenue for the DAO, currently totalling ~$77k.

Source: Curve Research

💦🔬 Tx-Level Alpha: Here, a user deposits 132.8 wBTC (~$3.6M) to borrow 1.7m crvUSD, adding to their 700k crvUSD borrow, collateralized by 796 wstETH ($~1.5M). These large positions have soft liquidation ranges of $13.5k-15k (wBTC) and $928-1k, minimizing the risk of even the most vicious spikes down.

③ MakerDAO 💫

👥 Vishesh | Website | Dashboard

📈 Dai supply reverses decline and crosses back over 5B

  • Over the past couple of years, the Dai supply has been largely falling. In August 2023, it fell to ~4.4B. It has since grown to ~5.5B. This turnaround coincided perfectly with the change to the Enhanced Dai Savings Rate (ESDR). The EDSR resulted in a savings rate of ~8% on the newly launched Spark Protocol. The rate has since equalized back down to ~5%. MKR price increased 25% in the same time frame. Simultaneously, the Dai surplus fell 22% to the intended buffer of 50m Dai.

Source: makerburn.com

  • Dai in the DSR increased by ~1.3B (380%) since August 2023. The initial spike coincided with the 8% EDSR rate increase and a small dip of ~360M Dai (24%) occurred around the reduction to a 5% EDSR rate. This means that ~30% of all Dai are currently in the DSR.

Source: makerburn.com

  • Out of the ~5.5B Dai supply, ~3.1B (56%) are minted against Real World Asset vaults. The top 3 RWA vaults are Monetalis at 1.25B (generating 4% fees), BlockTower (4.5%) at ~1.28B, and Coinbase Custody (3%) at 500M. 121M of Maker's 195M projected annualized profit comes from RWA vaults.

Source: makerburn.com

④ Aave GHO 👻

👥 Jack Stewart | Website | Dashboard

📈 GHO stablecoin sits at $22M in supply

  • Since July 16th, the GHO stablecoin—which is pegged to the US dollar—experienced a notable uptick in its supply, reaching its peak of over 23M at the end of August. As of September 28th, the supply has slightly pulled back to 22M. During this time frame, a total of 55.4M GHO tokens have been minted, while 32.6M tokens have been burned. The current 22M supply represents a fraction of Aave's Total Value Locked (TVL) of $4.62B. This disparity not only emphasizes the fluctuating nature of GHO's supply but also underscores its potential for growth within the broader financial landscape.

Source: Flipside Crypto - @jackguy

  • Among 541 GHO token holders, 483 possess less than 2.5k tokens, while 25 command over 100k. The average holder's stake is 42.1k GHO, but the median sits at 22 GHO. This breakdown reveals a diverse distribution pattern in the GHO small community of holders.

Source: Flipside Crypto - @jackguy

  • Since August, GHO token's swap activity has seen a decline, dropping from 1M-3M daily to a current 200k - 1.5M. Interestingly, daily swappers range between 20 and 60, indicating that a limited group handles this substantial volume, highlighting concentrated trading activity.

Source: Flipside Crypto - @jackguy

💦🔬 Tx-Level Alpha: In this transaction, the stablecoin GHO is minted within Aave when borrowed against collateral. With the minting, the borrower receives a debt token. To settle this, the GHO is returned to Aave, allowing collateral retrieval. However, if the collateral's value significantly drops compared to the borrowed amount, it risks liquidation. This system upholds GHO’s peg, as collateral in Aave consistently backs the GHO supply.

⑤ Tether 🍐

👥 Henry Child | Website | Dashboard

📈 Tether’s market cap up +22% in the last year

  • 2023 has been tough year for crypto, yet USDT is thriving with a market cap of $83.28B, which is up +22% in the last year and represents 66% of the stablecoin market share.

Source: Messari.io (powered by DefiLlama)

  • The number of wallets holding USDT on Tron increased 94% YTD, from 15.65m to 30.35m; on Ethereum, the number of wallets increased 60% YTD. USDT monetary base hit ATH earlier this year.

Source: TRONSCAN

  • Approximately 45B USDT held by leading CEXs. Over 40B USDT sits non-crypto platforms, suggesting mass market adoption is driving demand for USDT.

Source: TRONSCAN

💦🔬 Tx-Level Alpha: Tron is the chain of choice for mass market usage. 48.9% of all USDt-Tron is held outside of the top 500 accounts, showing increasing widespread distribution of USDT.

Comments

All Comments

Recommended for you

  • RWA platform Re completes new round of financing of US$7 million, led by Electric Capital

    Re, a tokenized reinsurance RWA platform, has completed a new round of funding of $7 million, led by Electric Capital. It is reported that the project had completed a seed round of funding of $14 million at the end of 2022. Re's goal is to support $200 million in premiums by the end of this year.

  • Crypto prediction market Polymarket has raised $70 million in two rounds of funding

    Peter Thiel's venture capital firm, Founders Fund, is investing in the cryptocurrency prediction market Polymarket. A spokesperson for Polymarket stated that the company has raised $70 million in two rounds of financing, with the latest round led by Founders Fund. The company's supporters also include Ethereum co-founder Vitalik Buterin, and it has been attracting users to predict the outcomes of various events, with bets on the 2024 US presidential election becoming the most popular contract on its platform.

  • ChainML raises $6.2m in seed extension funding for community-governed AI platform, Theoriq

    ChainML, a Silicon Valley-based AI and ML development and research lab, has raised $6.2m in seed extension funding for its AI platform called Theoriq. The funding round was led by Hack VC and included participation from several other venture capital firms. The company plans to use the funds to expand its development efforts and continue building community-governed AI systems based on principles of social evolution and blockchain technology. CEO Ron Bodkin expressed excitement about the potential for unlocking new potentials for AI integration within the decentralized space.

  • Zeta Markets Raises $5 Million in Token Funding Round

    Solana DEX Zeta Markets raised $5 million in a new round of funding led by Electric Capital. Other investors in this round of funding include Digital Asset Capital management company, Selini Capital, and Airtree Ventures. Angel investors include Solana's Anatoly Yakovenko, Helius' Mert Mumtaz, Tensor's Richard Wu, Pyth's Genia Mikhalchenko, Wintermute's JMR Luna, and Bonk's Nom also participated in this round of funding.

  • Tornado Cash Developer Alexey Pertsev Sentenced to 64 Months in Prison

    On Tuesday, a Dutch judge ruled that Tornado Cash developer Alexey Pertsev was guilty of money laundering. The court sentenced Pertsev to 64 months in prison. In August 2022, Tornado Cash was blacklisted by the US government, and this is the first time the developer has been sentenced to prison in the Netherlands. At the time, the US Treasury Department claimed that Tornado Cash was a key tool for the North Korean hacker group Lazarus. The Lazarus group is linked to the $625 million hack of Axie Infinity's Ronin Network and other major cryptocurrency thefts.

  • Dutch court finds Tornado Cash founder Alexey Pertsev guilty of money laundering

    A Dutch court composed of three judges has ruled that Tornado Cash developer Alexey Pertsev committed the crime of laundering $1.2 billion in illegal assets on a cryptocurrency mixing platform. It is expected that the panel will also sentence 31-year-old Russian resident Alexey Pertsev on Tuesday, and Pertsev's lawyer will have 14 days to appeal the judge's ruling. Experts say that this ruling will reshape the privacy protection process in the decentralized finance field and have a "chilling effect" on the development of open-source software that provides financial privacy protection tools for users.

  • Cross-border money laundering group laundered HK$88 million, 8 people arrested

    The Hong Kong Police Commercial Crime Bureau locked onto a cross-border money laundering group in November 2023. The investigation found that the group recruited mainlanders to open puppet bank accounts in Hong Kong from September 2023 to March 2024. They used various types of fraud, such as telephone scams, nude chat scams, investment scams, and job scams to defraud victims. The victims were instructed by the fraudsters to deposit the stolen money into the puppet accounts controlled by the criminal group. The group would then withdraw the stolen money from the puppet accounts in cash and buy cryptocurrencies on the over-the-counter (OTC) market. They would also open accounts on overseas cryptocurrency platforms with false identities and deposit the cryptocurrencies purchased with the stolen money before transferring them to multiple cryptocurrency wallets to launder the criminal proceeds. The police also pointed out that the group used 72 local puppet bank accounts to launder more than HKD 88 million in criminal proceeds, of which HKD 6.7 million was related to 48 fraud cases. As of yesterday, the police arrested 7 men and 1 woman aged between 26 and 51 for conspiring to launder black money. They claimed to be a lifeguard, photographer, telephone programmer, salesperson, and unemployed. Six of them were core members, and two were puppet account holders.

  • Sharp Alpha Advisors Raises $25M for Second Fund Targeting Early Stage Software Companies in Sports, Gaming, and Entertainment Industries

    New York-based venture capital firm Sharp Alpha Advisors has secured $25 million for its second fund, which will primarily invest in early stage software companies in the sports, gaming, and entertainment sectors. The fund aims to invest between $1 million and $2 million in 15 startups that fall under the category of "competitive entertainment," such as technology firms catering to sports betting, fantasy sports, streaming platforms, and video games. Sharp Alpha has already invested in London-based technology startup C15 Studio, which operates and distributes streaming channels for Formula 1 and One Championship, and plans to make further investments over the next three to five years. Additionally, the firm has a sidecar vehicle for limited partners to invest more money in individual companies within the fund.

  • Russian authorities plan to impose heavy fines on cryptocurrency miners operating in residential apartments

    Russian authorities have proposed imposing huge fines on cryptocurrency miners suspected of operating in residential properties. The authorities may also consider revising the Code of Administrative Offenses to hold those who abuse electricity accountable.

  • TheoriqAI Completes $6.2 Million Super-Seed Round of Financing, Led by Hack VC

    On May 14th, TheoriqAI, a modular AI agent infrastructure, announced on X platform that it has completed a $6.2 million Super-Seed round of financing. Hack VC led the investment, with participation from Foresight Ventures, HTX Ventures, Figment Capital, HASH CIB, Inception Capital, Antalpha Ventures, NewTribe Capital, Stateless Ventures, Bitscale Capital, Construct Ventures, Hypersphere, IOSG Ventures, LongHash Ventures, HashKey Capital, SNZ Holding, Chainlink.

Daily Must-Read

Popular Activities

Delysium $AGI & AI Private Yacht Party

Delysium $AGI & AI Private Yacht Party

March 27 - March 27
Seoul

Popular Tags

Cointime
News
Contents
RSS
Company