Decoding the Liquid Loans Analytics (Weekly Highlights)

Liquid Loans launched on December 1st, 2023.

Right out of the gates, billions of PLS was locked up and millions of USDL was minted.

This running blog post will summarize and analyze the stats from the protocol.

Weeks #18-20 (April 1st-21st)

Borrowing

• 866 Billion PLS worth 67.8 Million USD is currently collateralized across 668 vaults
• 5.41% of the Non-OA supply is PLS is locked with the protocol
• Total collateral ratio is 396%
• Current supply of USDL is 17.11 Million

Stability Pool & Liquidations

• The Stability Pool holds 15 Million USDL and has been earning 166% APR since launch
• Stability Providers have earned 588 Billion LOAN tokens since launch
• Only 3 liquidations in the past 21 days

LOAN Token

• 960 Billion LOAN tokens are currently staked.
• 13985 USDL was paid to the LOAN Stakers during this time from borrowing fees
• Over 35 Million PLS was paid to the LOAN Stakers over this time period

Key Takeaways

• Redemptions has become nearly negligible. As a consequence, many users are electing a lower collateral ratio, making them more capital efficient.
• Both Total Vaults and Total PLS locked have increased, but due to a decrease in the price of PLS we have not seen an increase in TVL.

Weeks #16,17 (March 17th-31st)

Borrowing

• 831 Billion PLS worth 90 million USD is currently collateralized across 668 vaults
• Over 5% of the total NON-OA supply of PLS is locked within the Liquid Loans protocol.
• Total collateral ratio is fluctuating around 500%
• The current supply of USDL is roughly 16 million

Stability Pool & Liquidations

• Roughly 18 million USDL is staked in the Stability Pool (90% of the total supply)
• The APR of the Stability Pool is over 180%
• 427 Billion LOAN tokens have been distributed to the Stability Providers
• 439 Million PLS was distributed to the Stability Pool during this time

LOAN Token

• 3.7 Million USD worth of LOAN tokens are staked within the Staking Pool
• 16% of the total future supply of LOAN token is staked
• 129,000 USDL was paid to the Staking Pool during this time
• 120 Million PLS was paid to the Staking Pool from redemption fees

Takeaways and Analysis

• Due to redemption volume slowing down, the total collateral ratio of the ecosystem has fallen, making it more capital efficient.
• The Stability Pool APR continues to rise making it an extremely attractive alternative to savings accounts.
• The LOAN Staking Pool continues to earn 10s of thousands of USD worth of PLS and USDL per week.

Week #15 (March 10th-16th, 2024)

Borrowing

• 938 Billion PLS worth 124 Million USD is currently collateralize across 712 open vaults
• Almost 6% of the Non-OA supply of PLS is collateralized within the Liquid Loans Protocol
• The current supply of USDL is 18.8 Million
• The Total Collateral Ratio of the Protocol is 660% PLS value to USDL value

Stability Pool & Liquidations

• 17.4 Million USDL is staked in the Stability Pool (92% of the total supply).
• The APR of the Stability Pool is sitting at a shocking 165%
• 427 Billion LOAN Tokens have been distributed to the Stability Pool since the launch of the protocol
• 4.3 billion PLS was distributed to the Stability Pool from 1 liquidation event

LOAN Token

• Over 838 Billion LOAN Tokens are staked in the LOAN Staking Pool and are earning over 83% APR.
• The current staked LOAN token is over 10% of the total supply of current and future LOAN token
• LOAN Stakers earned over 86,000 USDL and over 864 Million PLS last week

Takeaways and Analysis

• Redemptions have slowed substantially, and many users are decreasing their collateral ratios and making their vaults more capital efficient.
• The Stability Pool APR rose last week and remains one of the best opportunities for stablecoin yield in all of DeFi

Weeks #12-14 (January 17th-March 9th, 2024)

Borrowing

• 990 Billion PLS worth over 160 million USD is currently collateralized across 950 vaults.
• A whopping 6.97% of non-OA supply PLS is inside the protocol
• The current supply of USDL is 30.5 Million
• The TCR of the protocol is over 700%

Stability Pool & Liquidations

• Over 92% of the USDL in existence is staked in the Stability Pool
• The Stability Pool APR is rising and is above 110%
• Liquidations have all but ceased since the individual collateral ratios have been rising
• Over 370 Billion LOAN token have been distributed to Stability Providers

LOAN Token

• Over 780 Billion LOAN Token is staked within the Staking Pool and is worth over 7 Million USD
• The Staking Pool is making over 65% APR

Weeks #9-11 (January 28th-February 16th, 2024)

Borrowing

• 1.15 Trillion PLS worth 170 Million USD is currently collateralized across 1078 individual vaults
• A whopping 7.21% of the non-OA supply of PLS is locked in the Liquid Loans protocol
• The current supply of USDL is 32.25 Million and rising
• The total collateral ratio of the protocol is at an extremely healthy 520% PLS to USDL value.

Stability Pool & Liquidations

• 95.5% of USDL in existence is staked in the Stability Pool and is earning 97% APR.
• Total liquidated vaults has slowed down significantly and remains at 80.
• Total PLS distributed to the Stability Pool was under 1 Billion for the last 3 weeks.
• 340 Billion LOAN token has been distributed to the Stability Providers since the launch of the protocol.

LOAN Token

• 714 Billion LOAN token is staked in the Staking Pool. It is worth 8.9 Million USD and is earning roughly 52% APR.
• Roughly 100,000 USDL was distributed to the Staking Pool for issuance fees over the past 3 weeks.
• Roughly 300 Million PLS was distributed to the Staking Pool during this same time frame.

Takeaways and Analysis

• The vaults within Liquid Loans continue to gain a greater share of the total non-OA supply of PLS, along with a rising PLS price. Will we see TVL within Liquid Loans reach 200 M by the end of next week?
• The vast majority of USDL in existence is parked in the Stability Pool, suggesting that there are opportunities to earn yield elsewhere with less competition.

Week #8 (January 20th-27th, 2024)

Borrowing

• 1.05 Trillion PLS worth 126 Million USD is collateralized across 1027 vaults
• 6.6% of the total supply of PLS excluding the OA is collateralized
• The current supply of USDL is 28.7 Million
• The total collateral ratio of the protocol is 441%

Stability Pool & Liquidations

• 96% of the total USDL is staked in the Stability Pool earning 105% APR
• Total liquidated vaults is still just 80

LOAN Token

• 658 Billion LOAN token is staked earnign 63.78% APR
• The LOAN/PLS liquidity pool on PulseX has the #17 most volume on PulseChain

Week #7 (January 13th-19th, 2024)

Borrowing

• 1 Trillion PLS worth 120.6 M USD is collateralized across 982 vaults
• The current supply of USDL is 27.94 Million
• The total collateral ratio of the protocol is 431%

USDL/PLS Pair

• The current liquidity of the PLS/USDL pair on PulseX v2 is 954k
• Volume has ranged from 1m-3m daily
• The pair has dropped to the 15th most liquid on PulseChain and the 4th most liquid stablecoin

Stability Pool & Liquidations

• 26.4 Million USDL is staked in the Stability Pool, making up 94.6% of the total supply
• Stability Pool APR is 115%
• Total liquidated vaults is 80
• 1.9 Billion PLS was distributed to the Stability Pool this week
• 232 Billion LOAN token has been rewarded to the Stability Pool so far

LOAN Token

• The price of LOAN token bottomed at 0.0000068 and currently sits at 0.0000175, roughly a 2.5X from the low point.
• 628 Billion LOAN token are staked earning an APR of 52.6%
• 716 Million PLS was distributed to the LOAN Staking Pool this week from redemption fees
• 104,000 USDL was distributed to the LOAN Staking Pool this week from borrowing fees.

Takeaways

• The total collateral ratio is at 432% because many users are trying to avoid redemption.
• Redemptions are so frequent right now because many users are using the redemption function as the most cost effective way to convert USDL to PLS
• If more users provided LP on the USDL/PLS pair, there would be one less factor encouraging excess redemptions and the total collateral ratio of Liquid Loans would move to a more capital efficient position.

Week # 6 (January 5th-January 12th, 2024)

Borrowing

• 1 TRILLION PLS worth 83 Million USD is collateralized across 1006 vaults
• The current supply of USDL is 28.74 Million
• The total collateral ratio of the protocol is 288%

USDL/PLS Pair

• The current liquidity for the PLS/USDL pair is 1.7 Million USD, a significant pull back from over 6 Million the day prior
• Volume through the pair has not decreased to the same degree, increasing fees for the liquidity providers
• The pair has dropped to the 11th most liquid pool on PulseChain and the fourth most liquid stablecoin on PulseChain

Stability Pool & Liquidations

• 26.5 Million USDL is staked in the Stability Pool, representing over 92% of the total supply
• The APR of the Stability Pool is 112%
• 78 total vaults have been liquidated
• 1.89 Billion PLS has been absorbed by the Stability Pool from liquidations
• 193.4 Billion LOAN token has been issued to the Stability Pool since launch

LOAN Token

• 585 Billion LOAN tokens are staked worth 11.5 Million USD
• 194,000 USDL was issued to the LOAN Staking Pool from borrowing fees
• 1.12 Billion PLS was issued to the LOAN Staking Pool from redemption fees

Takeaways

• Rising PLS and LOAN prices have led to increased total value locked, total collateral ratios, TVL in Staking Pool, and total USDL supply
• The termination of the LP Rewards Program led to a sharp decrease in total value locked in the USDL:PLS liquidity pool. Click here to learn why you shouldn't pull your liquidity, even though the LP Rewards is over.

Week #5 (December 29th-January 4th, 2024)

Borrrowing

• 957 Billion PLS worth 51 Million USD is collateralized across 1026 vaults
• The current supply of USDL is 24.5 Million
• The total collateral ratio is at 209%, still remaining healthy despite significant drawdowns in the price of PLS

USDL/PLS Pair

• The current liquidity for the PLS/USDL pair is 6.4 Million
• This makes USDL the second most liquid stablecoin on PulseChain behind Dai from Ethereum
• USDL/PLS is the 6th most liquid pair on PulseChain

Stability Pool and Liquidations

• 19 Million USDL is staked in the Stability Pool, making up 82% of the total supply
• The Stability Pool APR is 142% APR
• Total number of liquidated vaults is 77

LOAN Token

• 532 Billion LOAN Token is staked in the Staking Pool
• The APR of the Staking Pool is currently 67%

Takeaways

• Users have become more cautious with collateral ratios, as no vaults currently sit below 145% ICR. This is likely due to users wanting to avoid being redeemed against.
• The total collateral ratio of the protocol has remained healthy despite significant drawdowns in PLS yet again

Week #2 (December 8-14, 2023)

Borrowing

• 689 Billion PLS worth 37.8 Million USD is collateralized across 864 vaults
• The current supply of USDL is over 17 million
• The total collateral ratio of the protocol is at a healthy 222%

USDL/PLS Pair

• Total liquidity for the PLS:USDL pair on PulseX v2 is 7.3 Million USD
• This is the 4th most liquid pair on PulseChain
• This is the 2nd most liquid stablecoin pair of PulseChain behind PLS/DAI

Stability Pool and Liquidations

• Nearly 12.6 million USDL is staked, making up 76% of the total circulating supply
• Only 791 Million PLS was liquidated in the last 7 days, compared to 9 Billion the week prior
• Stability Pool APR fluctuated between 300-500%
• 413 Billion LOAN token was issued to the Stability Pool over the last 7 days

LOAN Token

• Over 335 Billion LOAN token is currently staked
• Staking Pool APR has fluctuated between 60-80%
• 31,00 USDL was paid to the Staking Pool from borrowing fees

Takeaways

• Individual collateral ratios appear to have risen as no single vaults is currently below 120%
• Users are becoming more understanding of how to maintain a healthy collateral ratio evidenced by a 90% decrease in size of liquidations
• Will the total value locked exceed 1 Trillion PLS before the new year?
• How will redemption affect the price of USDL as well as the yield in the LOAN Staking Pool?

Week #1 (December 1-7, 2023)

Borrowing

• 23.2 Million USD worth of PLS is currently collateralized across 637 individual vaults
• Over 10 Million USDL is currently circulating

Stability Pool & Liquidations

• Nearly 8 Million USDL is staked, making up a 80% of the total circulating USDL
• 9.3 Billion PLS has been absorbed by the Stability Pool through liquidations
• 166 B LOAN token were issued to the Stability Pool
• The APR of the Stability Pool has ranged from 600-1400% in the first week

LOAN Token

• Roughly 200 B Loan token worth 3M USD staked
• The LOAN Staking APR has ranged from 70-100%
• The Staking Pool earned 64,165 USDL from borrowing fees

Takeaways

• Liquid Loans has 3.12% (~500B of 16T) of circulating PLS locked. Surpassing Liquity (338.3k of 120.2M ETH) by 11x.
• All of this PLS has been removed temporarily as sell pressure
• A new native stablecoin has provided liquidity to PulseChain to the tune of roughly 4.8 million USD, surpassing bridged in USDT from Ethereum.
• 67 vaults were liquidated, highlighting the need for individuals to understand healthy collateral ratios
• The Liquid Loans protocol easily survived the first 10% dip in the price of PLS. The total collateral health of the ecosystem never fell below 190%