One wallet moved $676M from Sky's savings vault into Aave in under 12 minutes on Nov 6.
On paper it was an easy trade. sUSDS paid 3.80%. Aave's $USDC pool on Ethereum was 95% borrowed and paying 5.82%.
Then the deposit itself cut Aave's rate to 2.38%.
~Two hours later Aave raised the pool's borrow cap from $2.27B to $2.60B
~Borrowed USDC went from $2.24B to $2.57B, 99% of the new cap
~The rate is back to 3.28%, still below what the wallet left
~Its sUSDS balance was identical on June 1 and Oct 28
That last line is the interesting one.
sUSDS has paid less than a 3-month T-bill (now 4.00%) every day since June 1, and its deposits fell from $5.88B to $3.94B.
This wallet sat through all of it and only moved for a 2pp spread.
My read is big onchain dollars follow the spread, not the brand. And on Aave, USDC demand looks capped, not weak.
But this is one wallet, we don't know whose, and these rates move every block.
Does Sky lift its savings rate back above T-bills, or let deposits keep leaving?
On paper it was an easy trade. sUSDS paid 3.80%. Aave's $USDC pool on Ethereum was 95% borrowed and paying 5.82%.
Then the deposit itself cut Aave's rate to 2.38%.
~Two hours later Aave raised the pool's borrow cap from $2.27B to $2.60B
~Borrowed USDC went from $2.24B to $2.57B, 99% of the new cap
~The rate is back to 3.28%, still below what the wallet left
~Its sUSDS balance was identical on June 1 and Oct 28
That last line is the interesting one.
sUSDS has paid less than a 3-month T-bill (now 4.00%) every day since June 1, and its deposits fell from $5.88B to $3.94B.
This wallet sat through all of it and only moved for a 2pp spread.
My read is big onchain dollars follow the spread, not the brand. And on Aave, USDC demand looks capped, not weak.
But this is one wallet, we don't know whose, and these rates move every block.
Does Sky lift its savings rate back above T-bills, or let deposits keep leaving?
