What are we seeing in the DeFi #IPORates market?

In a situation like this we can't expect anything but outsized volatility

Both AAVE and Compound maxxed out with both at 99% utilization for USDT borrows

IPOR USDT currently sits at 59.29%

IPOR Index: app.ipor.io/ipor-index-sta… The actual borrow rate is above 100% annualized, remember IPOR is a mid-market rate

From the IPOR Index screener we can see little change in the USDT pool compositions, only the borrow rate has increased.

There are several whales playing the USDC re-peg

https://twitter.com/ipor_rates/status/1634449079546650624?s=20

Right now is a good time to be level headed and think several steps into the future. What we know is that two US banks have failed- Silvergate and SIVB. Silvergate hurts crypto markets, SIVB hurts everybody.

a🧵 First let's look at the exposure to SIVB in USDC. Circle has posted that it has $3.3 billion in cash at SIVB backing USDC. That's 8.2% of the cash reserve so in case of a total loss that would mark USDC down to $0.918.

Imagine you let banks lend to people who can't afford mortgages so the bankers can get bonuses, then step in to bail out those banks Imagine you printed $25 trillion since then to stimulate economies, also giving contrarians a reason to search for alternatives

What's the big deal about IPOR?

How does bringing a $450 trillion TradFi market to DeFi help the industry as a whole mature, bring liquidity, and build long-term utility?

The importance of benchmarks, the IRD market, and protocol growth
a 🧵

1/n 2/n
First, the interest rate derivatives market is comically large. We're talking over 400X larger than the entire market cap of all cryptos.

https://twitter.com/ipor_io/status/1628001917409394689?s=20