This week, Horizon’s TVL decreased to $445.6m, with $98.6m in net borrows and $303.8m in stablecoin supply.
Highlights
- TVL has decreased to $445.6 million, with a total stablecoin supply of $303.8 million and net borrowings standing at $98.6 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 3.53% for RLUSD and 1.75% for USDC.
- Over the past week, on-chain metrics indicated renewed traction and growing demand for JAAA, driven primarily by its more favorable yields compared to other RWAs.
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 $667.9, effectively reducing the borrowing cost by 1.75% APY.
- RLUSD: The new lending-focused campaign has begun, distributing $18,290 in daily rewards, capped at a 3.53% APR.
Utilization Report
In the twenty-sixth week since Horizon’s market launch, total outstanding debt increased to $98.6m. This recovery was largely driven by the recent opening of a $2.8m USDC/JAAA position by a new borrower.
Source: LlamaRisk, February 27, 2026
Parameter changes during this period
- JAAA: The supply cap was increased to 20m ($20.55m in dollar terms) on February 26th to accommodate the growing demand for JAAA from various LPs.
Supply (stablecoins)
Stablecoin supply decreased by 3.5%, holding $303.8m. Overall stablecoin supply continued to decline this week, mostly driven by RLUSD withdrawals as declining incentives and utilization caused the supply rate on Horizon to underperform the Core market (4.43% on Horizon vs. 4.73% on Core).
- RLUSD: The supply decreased by 4.1%, from $214.2m to $205.4m.
- USDC: The supply decreased by 9.4%, from $20.8m to $18.84m.
- GHO: The supply hasn’t changed and currently stands at $79.5m, managed by the GHO Stewards.
Source: LlamaRisk, February 27, 2026
Supply (RWAs)
The total supply of RWAs increased by 6.5%, holding $141.8 million. The RWA supply saw a boost over the week, driven solely by a new $8.52m JAAA supply from a single institutional investor ($2.81m on Feb 26 and $5.71m on Feb 27). This represents the first JAAA supply in five months, signaling a broader shift in demand from a wider range of investors attracted to private credit.
The changes in individual RWA supplies were as follows:
- USCC: Supply remained stable and currently sits at $123.4m.
- JTRSY: Supply remained at zero.
- USTB: Supply hasn’t changed and currently stands at $393k.
- JAAA: Supply increased by 370%, from $2.5m to $11.76m.
- USYC: Supply remained at zero.
- VBILL: Supply hasn’t changed and currently sits at $6.25m.
Source: LlamaRisk, February 27, 2026
Borrow
Total net borrowing on Horizon increased by 4.1% to $98.6m, mostly driven by a large single borrow of $2.81m USDC on February 26th against newly supplied JAAA collateral.
- USDC: Net borrows increased by 29.4%, from $10.9m to $14.1m.
- RLUSD: Net borrows increased by 1%, from $83.9m to $84.6m.
- GHO: Net borrows have been fully repaid and currently sit at zero.
Source: LlamaRisk, February 27, 2026
Stablecoin Utilization
This week, supply rates for RLUSD and GHO remained almost unchanged, while USDC saw a sudden spike in utilization driven by an increase in borrowing demand from February 26th.
Source: LlamaRisk, February 27, 2026
Stablecoin Supply Rates
With the launch of the twentieth supply incentive campaign, the RLUSD rate has been diluted following Ripple’s withdrawal from the campaign, though it still remains higher than Aave Core rates. Meanwhile, an increase in USDC utilization drove its borrow rate higher, resulting in a temporary spike in supply rates and widening the spread between RLUSD and USDC.
Source: LlamaRisk, February 27, 2026
Stablecoin Borrow Rates
The RLUSD borrow rates remained stable over the week. Meanwhile, an increase in USDC utilization drove its borrow rate higher, widening the spread between RLUSD and USDC rates.
Source: LlamaRisk, February 27, 2026
Profitability heatmaps for leverage looping
Yields on RWA assets in Horizon remained modest this week. USTB fell to 3.46%, while USCC yields at 4.36% after experiencing short drops below 3%. In contrast, JAAA sustained a higher 4.71% yield and lower volatility, as its longer-duration private credit structure resists the rapid carry trade fluctuations typical of other RWA assets (Superstate USCC).
When factoring in maximum leverage, potential profits currently stand at 11.89% for USTB (at 8.33x), 10.96% for USCC (at 6.67x), and 14.94% for JAAA (at 5.26x).
JAAA: The sharp drop in JAAA yield last October was influenced by Federal Reserve rate cuts.
USTB: Yields have trended lower alongside a decline in underlying U.S. Treasury rates, with the current level down to 3.63%. The move reflects a risk-off shift in positioning amid increased economic unpredictability amid evolving tariff policies, and broader geopolitical tensions.
USCC: Superstate Crypto-Carry strategies have continued to see downward pressure on yield, consistent with weaker carry available in listed crypto derivatives. Implied yields have softened across key derivative contracts, including CME SOL Future MAR26 (4.21%), CME ETH Future MAR26 (5.55%), CME XRP Future MAR26 (3.60%), and FalconX SOL Future MAR26 (0.15%).
JAAA
Source: LlamaRisk, February 27, 2026
Source: LlamaRisk, February 27, 2026
USCC
Source: LlamaRisk, February 27, 2026
Source: LlamaRisk, February 27, 2026
USTB
Source: LlamaRisk, February 27, 2026
Source: LlamaRisk, February 27, 2026