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    Aave - 8. How does BTC funding affect rates?

    Create a dashboard that shows: Supply and lending rates for at least five tokens in Aave V2, and Total amount of Wrapped BTC supplied over time. Provide analysis on the volatility of rates. Measure the correlation between USDC borrow rates and total wBTC

    The Chosen Five and Rates

    • The chosen five tokens are the Top 5 tokens most popular by number of borrow transactions.

    • For the rates we look at the Stable and Variable borrow rates plus the supplier rate.

      Borrow - Stable

    • The borrow rates have been quite stable(as the name suggests) for WETH, USDC, WBTC and DAI.

      • The only exception in USDT whose borrow rate jumped from 0.11 to 0.19 on June 18, 2022.

      Borrow - Variable

    • The variable borrow rates have been quite stable(opposite to what the name suggests) for WETH, USDC, WBTC and DAI.

      • The only exception in USDT whose borrow rate jumped from 0.018 to 0.08 on June 18, 2022.

      Supplier - Variable

    • The supplier rates have been somewhat up and down for all the tokens.

    • USDT did see a jump to 0.07, but the overall trend is decreasing supplier rates.

    WBTC supplied over time

    • In the past 90 days 41.4K of $WBTC or 1.3B $USD worth of $WBTC has been supplied over time.
    • The highest WBTC supplied was Jun 13, 2022 for a total of 9.4K $WBTC or 195M $USD.
    • The amount supplied has fallen down significantly in the recent weeeks.
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    USDC borrow rates vs total wBTC supplied

    • There doesn’t seem to be any strong co-relation between the WBTC supplied and the USDC borrow rate
    • As seen on the monthly average the rates vs supplied amount has been quite off, sometimes in the same direction, but opposite direction recently.