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    Impacts of UST on STBL

    Q67. This week we saw the depeg of UST(a stablecoin built on Terra) and it sent shockwaves through all blockchain ecosystems causing the crypto market to crash. STBL is a 100% fully collateralized stablecoin created by the AlgoFi protocol. Let’s look at how the circulating supply of STBL was impacted by the events from May 8th to May 14th. Let’s look at how much STBL was borrowed and how much was repaid during the volatile week? What assets were swapped for STBL? Was there more swap volume into or out of STBL? Did we see a one-to-one swap volume with USDC? If not, why not? Were there certain trades causing this discrepancy?

    Overall

    This analysis shows the following cases:

    1. UST vs STBL Price during the crash.
    2. The STBL borrow volume and repay volume during the crash period.
    3. Swap_to STBL and Swap_from STBL volume.
    4. The assets that swapped_to and swapped_from STBL.
    5. USDC vs STBL price.

    2) The STBL borrow volume and repay volume during the crash period.

    In the following charts, we can see the volume of Repay is more than the Borrow volume from the early in the crash till May 12th. On May 11th we can see the repay volume is about 1 million and the fear of the entire market crash made users repay their STBL loans. According to STBL price that moved above 1 dollar on May 13th and 14, we see users regaining confidence in STBL and the Borrow volume had exceeded the Repay volume.

    • The Borrow volume in this period is about 1.5 million $STBL and the Repay volume is about 2.3 million $STBL.
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    1) UST Price during the crash.

    The UST crash started on May 8th.

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    3) Swap_to STBL and Swap_from STBL volume.

    The Swap volume on both sides had been almost the same during this period of time.

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    4) The assets that swapped_to and swapped_from STBL

    Here we can see the swap number for the top 20 assets on both sides.

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    5) USDC vs STBL price.

    As we saw in the tables above, the number of swaps from STBL to USDC was 1730 and the number of swaps from USDC to STBL was 1699 which they on the same level. If we look at the chart of USDC and STBL prices we notice that both of the coins are above $1 and even STBL from May 11th was higher than USDC. This situation could cause arbitrage opportunities that users to swap their STBL to USDC.

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    Conclusion

    According to these metrics can be said the performance of STBL during this crash was acceptable and despite the frightening fear of a market collapse, the users maintained their trust in STBL.