This week, Horizon’s TVL decreased to $447.7m, with $94.8m in net borrows and $314.5m in stablecoin supply.
Highlights
- TVL has decreased to $447.7 million, with a total stablecoin supply of $314.5 million and net borrowings standing at $94.8 million. This is primarily due to ongoing lower yields for carry trades and, more generally, in the DeFi ecosystem. RLUSD and USCC remain the dominant supplied assets.
- The incentive programs for the RLUSD supply and USDC borrow markets remain active, albeit with capped APRs of 4.25% for RLUSD and 1.75% for USDC.
Incentive Programs
Incentive programs on Horizon stimulate liquidity supply and borrowing activity, with active campaigns for USDC and RLUSD.
- USDC: The borrowing campaign remains active, offering daily rewards of $515.67, effectively reducing the borrowing cost by 1.75% APY.
- RLUSD: The new lending-focused campaign has begun, distributing $21104 in daily rewards, capped at a 4.25% APR.
Utilization Report
In the twenty-fifth week since Horizon’s market launch, total outstanding debt fell to $94.8m. This decline was largely driven by the steady withdrawal of USCC assets, resulting in the centralization of the remaining USCC supply among a few major holders.
Source: LlamaRisk, February 20, 2026
Parameter changes during this period
- USDC: The
baseVariableBorrowRatewas reduced from 2.0% to 1.5% on 18 Feb to adjust to broader rates seen on Aave V3 core market.
Supply (stablecoins)
Stablecoin supply decreased by 6.3%, holding $314.5m. Overall stablecoin supply levels were notably impacted this week, driven primarily by significant USDC withdrawals from various large entities.
- RLUSD: The supply decreased by 2.2%, from $219m to $214.2m.
- USDC: The supply decreased by 44%, from $37.1m to $20.8m.
- GHO: The supply hasn’t changed and currently stands at $79.5m, managed by the GHO Stewards.
Source: LlamaRisk, February 20, 2026
Supply (RWAs)
The total supply of RWAs decreased by 18.8%, holding $133.2 million. The RWA supply decreased this week, with the majority of the decline driven by USCC holders withdrawing their collateral.
The changes in individual RWA supplies were as follows:
- USCC: Supply decreased by 20%, from $154.9m to $124.1m.
- JTRSY: Supply remained at zero.
- USTB: Supply hasn’t changed and currently stands at $393k.
- JAAA: Supply hasn’t changed and currently sits at $2.5m.
- USYC: Supply remained at zero.
- VBILL: Supply hasn’t changed and currently sits at $6.25m.
Source: LlamaRisk, February 20, 2026
Borrow
Total net borrowing on Horizon decreased by 16.5% to $94.8m, driven primarily by large repayments of RLUSD and USDC, with a notable $5.27m repayment of USDC debt on February 19th.
- USDC: Net borrows decreased by 55.3%, from $24.4m to $10.9m.
- RLUSD: Net borrows decreased by 6%, $89m to $83.9m.
- GHO: Net borrows have been fully repaid and currently sit at zero.
Source: LlamaRisk, February 20, 2026
Stablecoin Utilization
This week, RLUSD utilization remained stable, while a large $6.62M USDC withdrawal on February 19th caused a sudden spike in USDC utilization. Meanwhile, GHO currently sits at 0% utilization.
Source: LlamaRisk, February 20, 2026
Stablecoin Supply Rates
With the launch of the twenty supply incentive campaign, RLUSD supply rates remained stable over the week. Meanwhile, USDC saw a temporary spike in supply rates after borrowing costs increased.
Source: LlamaRisk, February 20, 2026
Stablecoin Borrow Rates
While RLUSD borrowing rates remained stable this week, USDC experienced a high, temporary spike driven by a sudden surge in utilization.
Source: LlamaRisk, February 20, 2026
Profitability heatmaps for leverage looping
Yields on RWA assets in Horizon declined this week, with both Superstate assets now below 4%. USTB fell to 3.45%, and USCC declined to 3.92%, leaving a minimal spread between the two assets.
The continuous decline of USCC yield comes from a reduction in yields from crypto CME futures, specifically the notably low yields we see for ETH CME futures (1.37%) and the negative yields on SOL CME futures (-6.94%).
USCC
Source: LlamaRisk, February 20, 2026
Source: LlamaRisk, February 20, 2026
USTB
Source: LlamaRisk, February 20, 2026
Source: LlamaRisk, February 20, 2026