We analyze the significance of the MCR% decline on recent outflows from the Capital Pool, along with what’s being done to potentially curb that outflow and expectations going forward.
- The Capital Pool has experienced an outflow of almost 30k ETH since October 1st.
- We believe it’s unlikely that MCR hits 100% because it’s a momentum play, and MCR decline has effectively stopped.
- This situation has no effect on the ability of the protocol to function as intended.
- Investing Capital Pool assets will actually have a more meaningful impact than people think.