Horizon Weekly Highlights

[LlamaRisk]

This week, Horizon’s TVL increased to $628.3m, with over $209.8m in net borrows and $340.7m in stablecoin supply.

Highlights

• TVL has increased to $628 million, with a total stablecoin supply of $341 million and net borrowings standing at $210 million. RLUSD and USCC remain the dominant supplied assets, driven mainly by previously opened positions and ongoing incentive programs.
• The incentive programs for RLUSD supply and USDC borrow markets continue to be active, albeit with a capped APR of 4.5% for RLUSD after the renewal.

Incentivize Program

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 $2,956, which effectively reduces the borrowing cost by approximately 3.5%.
• RLUSD: The new lending-focused campaign has began, distributing $24,104 in daily rewards, capped at a 4.5% APR.

Utilization Report

In the nineteen weeks following Horizon’s market activation, the total borrowed amount increased to $209.8m, driven by the opening of new USDC and RLUSD borrowing positions with USCC as the primary collateral asset.

Source: LlamaRisk, January 9, 2025

Parameter changes during this period

• RLUSD: The supply cap was raised to 216.5m on 6 January and then again to 221.5m on 7 January, immediately filled by large suppliers.

Supply (stablecoins)

The total stablecoin supply on Horizon increased by 9.8% to $340.7m, growth driven by a rise in the supply of both RLUSD and USDC. This Growth followed a 2x increase in the RLUSD supply cap.

• RLUSD: The supply increased by 10% from $201.5m to $221.5m.
• USDC: The supply increased by 20.3% from $33m to $39.7m.
• GHO: The supply hasn’t changed and currently stands at $79.5m, managed by the GHO Steward.

Source: LlamaRisk, January 9, 2025

Supply (RWAs)

The total supply of RWAs increased by 7.9%, holding $2876 million. The increase in supply was driven solely by the expansion of USCC positions, while supply across other assets was broadly unchanged to modestly lower.

The changes in individual RWA supplies were as follows:

• USCC: Supply decreased by 9.5%, from $266.3m to $278.5m.
• JTRSY: Supply remained at zero with no assets supplied.
• USTB: Supply hasn’t changed and currently stands at $392.5k.
• JAAA: Supply hasn’t changed and currently sits at $2.5m.
• USYC: Supply remained at zero with no assets supplied.
• VBILL: Supply decreased by 2.3%, from $6.4M to $6.25M

Source: LlamaRisk, January 9, 2025

Borrow

Total net borrowing on Horizon increased by 5.6% to $209.8m, driven by new demand for borrowing USDC and RLUSD stablecoins.

• USDC: Net borrows increased by 18.8%, from $26.1m to $31m.
• RLUSD: Net borrows increased by 5.7%, from $126.3m to $133.5m.
• GHO: Net borrows haven’t changed and currently sit at $45.3m.

Source: LlamaRisk, January 9, 2025

Stablecoin Utilization

This week, GHO utilization remained flat, while USDC and RLUSD experienced a slight decline over the period, primarily due to new stablecoin supply inflows.

Source: LlamaRisk, January 9, 2025

Stablecoin Supply Rates

The fourteenth incentive campaign is now live, with the RLUSD supply APY post-incentives being lower, reflecting reduced effective incentives. Overall rate conditions remain stable, with no material spillover observed in USDC markets.

Source: LlamaRisk, January 9, 2025

Stablecoin Borrow Rates

USDC and RLUSD borrowing rates held steady over the week, showing limited volatility and no meaningful trend, as additional stablecoin supply was matched with incremental borrows.

Source: LlamaRisk, January 9, 2025

Profitability heatmaps for leverage looping

USCC and USTB yields both declined over the period, with USCC falling to 4.4% and USTB slipping to 3.59%. Yields remain within a contained range, suggesting limited impact on the broader rate environment.

USCC

Source: LlamaRisk, January 9, 2025

Source: LlamaRisk, January 9, 2025

USTB

Source: LlamaRisk, January 9, 2025

Source: LlamaRisk, January 9, 2025

[LlamaRisk]

This week, Horizon’s TVL decreased to $604.3m, with over $193.2m in net borrows and $341.6m in stablecoin supply.

Highlights

• TVL has decreased to $604.3 million, with a total stablecoin supply of $341.6 million and net borrowings standing at $193.2 million. RLUSD and USCC remain the dominant supplied assets, driven mainly by previously opened positions and ongoing incentive programs.
• The incentive programs for RLUSD supply and USDC borrow markets continue to be active, albeit with a capped APR of 4.5% for RLUSD after the renewal.
• A large borrower has executed a $25M GHO debt repayment, withdrawing the USCC collateral shortly after, triggering a notable decline in total borrows.

Incentive Programs

Incentive programs on Horizon stimulate liquidity supply and borrowing activity, with active campaigns for USDC and RLUSD.

• USDC: The new borrowing campaign has begun, offering daily rewards of $3,065, which effectively reduces the borrowing cost by approximately 3.5% APY.
• RLUSD: The new lending-focused campaign has begun, distributing $23,570 in daily rewards, capped at a 4.4% APR.

Utilization Report

In the twenty weeks following Horizon’s market activation, the total borrowed amount decreased to $193.2m, primarily driven by the repayment of the largest GHO borrowing position on January 14th.

Source: LlamaRisk, January 16, 2025

Parameter changes during this period

During this week, no parameter changes were proposed nor executed.

Supply (stablecoins)

The total stablecoin supply on Horizon has varied minimally and is currently valued at $341.3m.

• RLUSD: The supply hasn’t changed and currently stands at $221.5m.
• USDC: The supply increased by 2% from $39.7m to $40.5m.
• GHO: The supply hasn’t changed and currently stands at $79.5m, managed by the GHO Steward.

Source: LlamaRisk, January 16, 2025

Supply (RWAs)

The total supply of RWAs decreased by 8.6%, holding $262.8 million. The USCC decrease in supply was driven primarily by a single 3M ($34.30 M) USCC withdrawal that occurred on January 14th, while supply across other assets remained unchanged.

The changes in individual RWA supplies were as follows:

• USCC: Supply decreased by 8.9%, from $278.5m to $253.6m.
• JTRSY: Supply remained at zero.
• USTB: Supply hasn’t changed and currently stands at $392.5k.
• 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, January 16, 2025

Borrow

Total net borrowing on Horizon decreased by 7.6% to $193.2m, driven primarily by a single GHO debt repayment that occurred on January 14th.

• USDC: Net borrows increased by 3.5%, from $31m to $32.1m.
• RLUSD: Net borrows increased by 5.5%, from $133.5m to $140.9m.
• GHO: Net borrows decreased by 55.4% from $45.3m to $20.21m.

Source: LlamaRisk, January 16, 2025

Stablecoin Utilization

This week, utilization for USDC and RLUSD remained within normal ranges, while GHO experienced a significant drop-down following a recent debt repayment.

Source: LlamaRisk, January 16, 2025

Stablecoin Supply Rates

The fifteenth supply incentive campaign for RLUSD is now live, with no major changes observed during this week. Overall rate conditions remain stable across the board.

Source: LlamaRisk, January 16, 2025

Stablecoin Borrow Rates

Borrowing rates for USDC and RLUSD remained stable throughout the week, characterized by minimal volatility and a lack of directional movement.

Source: LlamaRisk, January 16, 2025

Profitability heatmaps for leverage looping

USCC yields climbed from 3.6% to 5.06% APY by the end of the week, while USTB yields trended lower to 3.54%. The diverging yield movement, specifically for USCC, has caused the aforementioned large repayments of USCC-backed debt.

USCC

Source: LlamaRisk, January 16, 2025

Source: LlamaRisk, January 16, 2025

USTB

Source: LlamaRisk, January 16, 2025

Source: LlamaRisk, January 16, 2025

[LlamaRisk]

This week, Horizon’s TVL decreased to $571.1m, with over $172.6m in net borrows and $338.1m in stablecoin supply.

Highlights

• TVL has decreased to $571.1 million, with a total stablecoin supply of $338.1 million and net borrowings standing at $172.6 million. RLUSD and USCC remain the dominant supplied assets.
• The incentive programs for RLUSD supply and USDC borrow markets continue to be active, albeit with a capped APR of 4.25% for RLUSD after the renewal.

Incentive Programs

Incentive programs on Horizon stimulate liquidity supply and borrowing activity, with active campaigns for USDC and RLUSD.

• USDC: The new borrowing campaign has begun, offering daily rewards of $2,482, which effectively reduces the borrowing cost by approximately 3.5% APY.
• RLUSD: The new lending-focused campaign has begun, distributing $22,729 in daily rewards, capped at a 4.25% APR.

Utilization Report

In the twenty-one weeks following Horizon’s market activation, the total borrowed amount decreased to $172.6m, driven by the lower yield on USCC, which encouraged the unwinding of outstanding positions.

Source: LlamaRisk, January 23, 2025

Parameter changes during this period

During this week, no parameter changes were proposed nor executed.

Supply (stablecoins)

Stablecoin supply on Horizon has held firm at $338.1m. We noted a spike in activity from a sole user executing large RLUSD withdrawals, filled rapidly by new suppliers without impacting the total supply significantly.

• RLUSD: The supply hasn’t changed and currently stands at $221.2m.
• USDC: The supply decreased by 7.7% from $40.5m to $37.4m.
• GHO: The supply hasn’t changed and currently stands at $79.5m, managed by the GHO Stewards.

Source: LlamaRisk, January 23, 2025

Supply (RWAs)

The total supply of RWAs decreased by 11.3%, holding $233 million. USCC supply decreased as yields on the asset declined, weakening return incentives and prompting participants to reduce exposure and withdraw supply.

The changes in individual RWA supplies were as follows:

• USCC: Supply decreased by 11.8%, from $253.6m to $223.8m.
• 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, January 23, 2025

Borrow

Total net borrowing on Horizon decreased by 10.6% to $172.6m, driven primarily by a drop in USCC yields and a subsequent reduction in borrowing demand against it.

• USDC: Net borrows decreased by 19%, from $32.1m to $26m.
• RLUSD: Net borrows decreased by 10.3%, from $140.9m to $126.5m.
• GHO: Net borrows haven’t changed and currently sit at $20.22m.

Source: LlamaRisk, January 23, 2025

Stablecoin Utilization

For this week, utilization levels for USDC, RLUSD, and GHO remained stable with no significant fluctuations, though USDC continues to show a slight downward trend.

Source: LlamaRisk, January 23, 2025

Stablecoin Supply Rates

The sixteenth supply incentive campaign for RLUSD is now live, with no major changes observed during this week. Overall rate conditions remain stable across the board.

Source: LlamaRisk, January 23, 2025

Stablecoin Borrow Rates

Borrowing rates for USDC and RLUSD remained stable throughout the week, characterized by minimal volatility and a lack of directional movement.

Source: LlamaRisk, January 23, 2025

Profitability heatmaps for leverage looping

Both USTB and USCC experienced a decline in yields, prompting additional USCC-backed position closures as the relative yield advantage narrowed. The USCC yield sits at 4.0%, while USTB has edged down to 3.47%.

USCC

Source: LlamaRisk, January 23, 2025

Source: LlamaRisk, January 23, 2025

USTB

Source: LlamaRisk, January 23, 2025

Source: LlamaRisk, January 23, 2025

[LlamaRisk]

This week, Horizon’s TVL decreased to $550.3m, with over $151.1m in net borrows and $334.6m in stablecoin supply.

Highlights

• TVL has decreased to $550.3 million, with a total stablecoin supply of $334.6 million and net borrowings standing at $151.1 million. RLUSD and USCC remain the dominant supplied assets.
• The incentive programs for RLUSD supply and USDC borrow markets continue to be active, albeit with a capped APR of 4.25% for RLUSD after the renewal.
• During this week, USDC’s base rate was lowered to 5%, reducing borrowing costs for users.

Incentive Programs

Incentive programs on Horizon stimulate liquidity supply and borrowing activity, with active campaigns for USDC and RLUSD.

• USDC: The new borrowing campaign has begun, offering daily rewards of $2,258, which effectively reduces the borrowing cost by approximately 3.2% APY.
• RLUSD: The new lending-focused campaign has begun, distributing $22,676 in daily rewards, capped at a 4.25% APR.

Utilization Report

In the twenty-two weeks following Horizon’s market activation, total borrowed outstanding declined to $151.1m, driven primarily by a single address repaying an additional $10m of GHO debt on 28 Jan (tx1 and tx2), which materially reduced aggregate borrow balances.

Source: LlamaRisk, January 30, 2025

Parameter changes during this period

• USDC: The baseVariableBorrowRate was reduced from 2.5% to 2.0% on 29 Jan.

Supply (stablecoins)

Stablecoin supply on Horizon decreased by 1.1% to $334.6m. Most of the supply withdrawals this week were concentrated among USDC suppliers, while RLUSD and GHO supply levels remained broadly unchanged.

• RLUSD: The supply remained stable at $220.8m.
• USDC: The supply decreased by 9% from $37.4m to $34.2m.
• GHO: The supply hasn’t changed and currently stands at $79.5m, managed by the GHO Stewards.

Source: LlamaRisk, January 30, 2025

Supply (RWAs)

The total supply of RWAs decreased by 3.3%, holding $225.4 million. USCC supply continued to decline over the week, while VBILL supply recorded a notable increase.

The changes in individual RWA supplies were as follows:

• USCC: Supply decreased by 9.2%, from $223.8m to $203.3m.
• 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 increased by 53.6%, from $6.25m to $9.6m.

Source: LlamaRisk, January 30, 2025

Borrow

Total net borrowing on Horizon decreased by 12.5% to $151.1m, driven by repayments of outstanding GHO debt, which materially reduced overall market borrow balances.

• USDC: Net borrows remained stable at $25.9m.
• RLUSD: Net borrows decreased by 9%, from $126.5m to $115.1m.
• GHO: Net borrows decreased by 50.2%, from $20.22m to $10.1m.

Source: LlamaRisk, January 30, 2025

Stablecoin Utilization

This week, RLUSD utilization remained broadly stable. USDC utilization ticked up modestly over the period, while GHO experienced a sharp step-down, driven by the repayment of the largest borrowing position on 29 Jan, which materially reduced outstanding debt and utilization.

Source: LlamaRisk, January 30, 2025

Stablecoin Supply Rates

The seventeenth supply incentive campaign for RLUSD is now live, with no major changes observed during this week. Overall rate conditions remain stable across the board.

Source: LlamaRisk, January 30, 2025

Stablecoin Borrow Rates

Borrowing rates for USDC and RLUSD were largely stable over the week. USDC borrow rates edged higher as short-lived utilization spikes, while RLUSD remained comparatively stable with limited volatility.

Source: LlamaRisk, January 30, 2025

Profitability heatmaps for leverage looping

USTB yields have remained broadly stable at around 3.4%. In contrast, USCC saw a sharp yield spike, climbing to roughly 5.3%, widening the relative yield advantage.

USCC

Source: LlamaRisk, January 30, 2025

Source: LlamaRisk, January 30, 2025

USTB

Source: LlamaRisk, January 30, 2025

Source: LlamaRisk, January 30, 2025

[LlamaRisk]

This week, Horizon’s TVL decreased to $501.3m, with over $122.5m in net borrows and $334.6m in stablecoin supply.

Highlights

• TVL has decreased to $501.3 million, with a total stablecoin supply of $334.6 million and net borrowings standing at $122.5 million. 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 3.2% for USDC.
• This week, we saw a large decline in RWA supply, with approximately $45 million USCC withdrawn from the Horizon market.

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 $1,753, effectively reducing the borrowing cost to approximately 3.2% APY.
• RLUSD: The new lending-focused campaign has begun, distributing $22,429 in daily rewards, capped at a 4.25% APR.

Utilization Report

In the twenty-three weeks following Horizon’s market activation, total borrowed outstanding declined to $122.5m, driven primarily by a large withdrawal of USCC assets (see “RWA Supply” section) and top suppliers closing their stablecoin debt positions.

Source: LlamaRisk, February 6, 2025

Parameter changes during this period

This week, no parameter changes were proposed or implemented.

Supply (stablecoins)

Stablecoin supply hasn’t changed and is currently estimated at $334.6m. Overall stablecoin supply levels remained broadly unchanged this week, with RLUSD maintaining its position as the largest.

• RLUSD: The supply hasn’t changed and currently stands at $220.5m.
• USDC: The supply hasn’t changed and currently stands at $34.6m.
• GHO: The supply hasn’t changed and currently stands at $79.5m, managed by the GHO Stewards.

Source: LlamaRisk, February 6, 2025

Supply (RWAs)

The total supply of RWAs decreased by 26%, holding $166.7 million. USCC experienced one of the largest supply declines in its history this week, with 45.4M USCC withdrawn by large suppliers (ex., tx1 and tx2). Similarly, VBILL saw a reduction in supply, driven by a single user withdrawing their position.

The changes in individual RWA supplies were as follows:

• USCC: Supply decreased by 22.5%, from $203.3m to $157.6m.
• 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 decreased by 34.9%, from $9.6m to $6.25m.

Source: LlamaRisk, February 6, 2025

Borrow

Total net borrowing on Horizon decreased by 18.9% to $122.5m, driven by repayments of RLUSD debt by large borrowers as they closed their USCC-backed debt positions.

• USDC: Net borrows decreased by 14.7%, from $25.9m to $22.1m.
• RLUSD: Net borrows decreased by 21.5%, from $115.1m to $90.3m.
• GHO: Net borrows haven’t changed and currently sit at $10.1m.

Source: LlamaRisk, February 6, 2025

Stablecoin Utilization

This week, utilization for both RLUSD and USDC declined due to borrower repayments, while GHO utilization remained broadly stable.

Source: LlamaRisk, February 6, 2025

Stablecoin Supply Rates

The eighteenth RLUSD supply incentive campaign is now live. Supply rates declined slightly this week due to cheaper borrowing costs for stablecoins, with RLUSD supply incentives decreasing to 4.33%.

Source: LlamaRisk, February 6, 2025

Stablecoin Borrow Rates

Borrowing rates for both USDC and RLUSD declined over the week, driven by a noticeable drop in utilization as market participants repaid outstanding debt.

Source: LlamaRisk, February 6, 2025

Profitability heatmaps for leverage looping

Yields for RWA assets on Horizon shifted this week. USTB remained broadly stable, currently sitting at 3.44%, while USCC yields declined to 4.7%, narrowing the spread between the two assets.

USCC

Source: LlamaRisk, February 6, 2025

Source: LlamaRisk, February 6, 2025

USTB

Source: LlamaRisk, February 6, 2025

Source: LlamaRisk, February 6, 2025