This week, Horizon’s TVL decreased to $368m, with $110.4m in net borrows and $218.6m in stablecoin supply.
Highlights
- TVL has decreased to $368 million, with a total stablecoin supply of $218.6 million and net borrowings standing at $110.4 million. The Horizon market declined this week amid ongoing global events and worsening macroeconomic conditions. RLUSD and USCC remain the dominant supplied assets.
- The incentive programs for the RLUSD supply and USDC borrow markets remain active, albeit with capped APYs of 3.5% for RLUSD and 1.75% for USDC.
- New USTB inflows mark a significant reversal after nearly six months of market inactivity, with $19.45 million entering the Horizon market over the week.
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 $433.1, effectively reducing the borrowing cost by 1.75% APY.
- RLUSD: The new lending-focused campaign has begun, distributing $12,662 in daily rewards, capped at a 3.5% APY.
Utilization Report
In the thirty weeks since Horizon’s market launch, total outstanding debt stands at $110.4m. Over the past week, borrowing levels remained largely stable as new USTB-backed GHO borrowing entered the market shortly after the repayment of a large JAAA-backed debt from Resolv (see section “Borrow“).
Source: LlamaRisk, March 27th, 2026
Parameter changes during this period
This week, no parameter changes were proposed or implemented.
Supply (stablecoins)
Stablecoin supply decreased by 4.9%, holding $229.8m. Overall stablecoin supply decreased due to withdrawals of RLUSD and USDC, driven by the decline in RLUSD’s incentives (which dropped from 2.97% to 2.8%) and persistent low utilization across both markets, at 57.73% for USDC and 52.68% for RLUSD. In contrast, GHO supply remained stable throughout the week.
- RLUSD: The supply decreased by 5.9%, from $178.5m to $167.9m.
- USDC: The supply decreased by 4.8%, from $16.7m to $15.9m.
- GHO: The supply hasn’t changed and currently stands at $34.6m.
Source: LlamaRisk, March 27th, 2026
Supply (RWAs)
The total supply of RWAs decreased by 1.5%, holding $149.4 million. Growth was largely neutralized as $19.45 million in USTB was supplied across four transactions by just two investors, helping counterbalance a $22.2 million JAAA withdrawal from Resolv following the March 22 exploit. Specifically, a single user supplied $5 million in USTB on March 26, while a second user followed with three consecutive transactions ($5m, $5m, and $4.45m) on March 27, totaling $14.45 million in USTB. Currently, USCC’s supply remains entirely inactive.
The changes in individual RWA supplies were as follows:
- USCC: Supply hasn’t changed and currently stands at $120.7m.
- JTRSY: Supply remained at zero.
- USTB: Supply increased by 4949%, from $394k to $19.9m.
- JAAA: Supply decreased by 89.7%, from $24.8m to $2.55m.
- USYC: Supply remained at zero.
- VBILL: Supply hasn’t changed and currently stands at $6.25m.
Source: LlamaRisk, March 27th, 2026
Borrow
Total net borrowing also remained almost unchanged at $110.4 million, as flat activity was the result of a direct counterbalance between significant $16.75 million repayments of JAAA-backed debt by the Resolv protocol and new USTB-backed debt, including $12.75 million in GHO borrowings across three transactions ($4.4m, $4.4m, and $3.95m) from a single user on March 27 and an additional $4.6 million RLUSD borrow from another user on March 26.
- USDC: Net borrowings remain unchanged at $9.2m.
- RLUSD: Net borrows decreased by 8.1%, from $96.2m to $88.5m.
- GHO: Net borrows increased by 145.2%, from $5.2m to $12.8m.
Source: LlamaRisk, March 27th, 2026
Stablecoin Utilization
While RLUSD and USDC utilization haven’t changed much over the week, GHO saw a big increase in utilization due to the new $12.75 million borrowing demand on March 27, which outweighed the $5.23 million GHO repayment from the Resolv side on March 22. This surge was largely influenced by the fact that GHO remains the cheapest borrowing asset on Horizon (with a 2.79% borrow APY), offering an 18 bps discount compared to RLUSD and a 27 bps discount compared to the USDC borrow cost.
Source: LlamaRisk, March 27th, 2026
Stablecoin Supply Rates
Supply rates for USDC and RLUSD have remained almost unchanged over the week, though the RLUSD incentive APY declined from 2.97% to 2.8%. This adjustment has narrowed the current gap between the two assets to 1.72%.
Source: LlamaRisk, March 27th, 2026
Stablecoin Borrow Rates
Borrow APY also remained almost unchanged for USDC, while RLUSD borrowing rates saw a slight increase as utilization declined. This shift has solidified GHO as the cheapest borrowing asset on Horizon, with its APY currently capped at 2.79%.
Source: LlamaRisk, March 27th, 2026
Profitability heatmaps for leverage looping
RWA Yields: Yields on RWA assets in Horizon were mostly higher this week: USCC yield increased to 4.46%, USTB to 3.43%, and JAAA to 4.26%. Conversely, the VBILL yield dropped to 3.46%.
Maximum profitability: When factoring in maximum leverage, potential maximum returns currently stand at 8.12% for USTB (at 8.33x), 13.94% for USCC (at 6.67x), 8.37% for VBILL (at 8.33x), and 10.53% for JAAA (at 5.26x).
Market Overview: The CLARITY Act, introduced on March 20, includes a bipartisan yield provision proposing a ban on any arrangements “economically equivalent to interest” for passive stablecoin balances. This provision effectively threatens the pass-through model issuers use to fund user yield programs. Following the news, Circle shares fell 20% on March 24, marking their worst session since listing.
Despite the equity sell-off, stablecoin supply hit $316 billion, growing by a third over the past year as it decouples from broader crypto volatility. If the provision survives the late-April committee markup, it will likely consolidate the market, stripping emerging yield-bearing competitors of their main advantage against the USDT/USDC duopoly. While the status of DeFi-native mechanisms like Sky Savings Rate or sGHO remains unresolved, institutional bets on the payments use case continue, evidenced by Mastercard’s $1.8 billion acquisition of BVNK and PayPal’s expansion of PYUSD to 70 markets.
The private credit sector entered a period of defensive repositioning this week as major managers shifted their focus from new deal-making to portfolio management. Ares gated its $10.7 billion fund on March 25, joining Apollo, Blue Owl, and Blackstone in restricting redemptions. While the headline default rate remains under 2%, the effective default rate, including selective defaults and liability management, is currently approaching 5%.
Transmission risk is rising, as UBS estimates that 25–35% of Business Development Company (BDC) portfolios are exposed to sectors with high AI-disruption risk, such as legacy IT services and business services. With roughly $40 billion in BDC assets overlapping with public loan markets, a redemption shock in private vehicles could trigger significant forced selling in syndicated loan markets.
RWAs Performance
Source: LlamaRisk, March 27th, 2026
Source: LlamaRisk, March 27th, 2026