State of The Peg: Week of July 4


  • Peg is low enough to pay attention, but it could recover on its own.
  • Debt ceiling is almost within spitting distance.
  • ETH is probably the culprit, but the lower stability fee appears to increase the sensitivity of the system to price movements.
  1. Price is down

  2. Supply is up.
  3. Eth is probably the culprit.
  4. Old loan circulation is down slightly. New loan circulation has slowed back to a steady state.
  5. Secondary lending supply is up.
  6. Secondary lending borrow is up.
  7. Collateralization rose and fell with ETH price, but fell more with ETH than it rose with ETH, so CDP owners probably increased leverage.

Great to see this analysis on the forum in an easily accessible format. Is the plan to post it here every week in addition to the monetary policy presentation in the governance meeting?


No plan either direction yet, testing things out.