cWBTC Migration Patterns on Compound

NIGE7777 takes a closer look at the migration from cWBTC to cWBTC2

It’s officially migration season. No, we don’t mean birds flying south for the winter, but instead, Compound users migration from cWBTC to cWBTC2 in recent weeks. Thanks to NIGE7777 for answering this bounty and providing us with the data — you can see the full submission here.

We’ll start by taking a look at the supply side of these new pools. As NIGE7777 points out, the new pool grew deposits quickly. The transition from the old pool, however, has slowed over time.

That high starting growth can likely be explained by the launch of the cWBTC2 market, as NIGE7777 noted. That launch had much higher APY levels to start with, which would largely explain the growth.

When we look at the borrow side of the equation, however, we see a far faster transition. What’s more, the majority of the legacy market made their migration in the first couple of days. The APY of the borrowing side, meanwhile, is likely a continuation of old patterns, NIGE7777 pointed out, as the borrow volume transitioned rather quickly.

Thanks to NIGE7777 for solving this bounty and providing us with the data — make sure to join the Flipside Crypto Discord and subscribe to the Bounty Brief to make sure you don’t miss out on our daily bounties!