Executive Summary
PSI touched 90.8 BEDROCK then retreated as USDC shed $914.85M into a yield war that is not over yet.
PSI opened the week at 88.7 STEADY, climbed to 90.8 BEDROCK by April 3, then retreated to 89.6 STEADY by Sunday. The 3-day BEDROCK excursion was the week's defining feature, but its brevity told the real story: the system stressed, absorbed the shock, and settled back without breaking. Total market cap added $2.18B across seven days, a 0.67% gain that masks violent rotation underneath. The Bank Run Gauge swung from minus 19.5 to plus 26.5, a 46-point range that suggests the plumbing was working harder than the headline PSI would imply.
The dominant thread was USDC hemorrhaging capital into a yield war. USDC lost roughly $914.85M over seven days while USDS, USDe, and USDf all spiked yields above double their 30-day averages. Monday's digest captured it cleanly: USDC yields hit 32.93% and capital still fled, because competitors were bidding even harder. By Thursday, "USDC Bleeds, Yields Beckon" was less headline than epitaph for a week of aggressive repricing. This is not a crisis; it is a capital auction, and the bidders are getting louder.
The counter-narrative lived in the small coins nobody watches until they detonate. GYD opened Monday as the week's sole WARNING. PGOLD lost 95% of DEX liquidity on Tuesday and another 98.5% by Saturday, effectively becoming a ghost. BRZ printed a 233 bps deviation on Saturday that drove severity scoring. USR collapsed to an F grade on day one. RLUSD shed $89M in a single session on April 2. These are not systemic risks at current scale, but 110 depeg events and 346 blacklist actions across 7 days suggest the tail is getting fatter.
Supply flows told a bifurcated story. The $2.18B net gain in total stablecoin market cap was built on inflows to yield-bearing assets, not broad expansion. PYUSD lost $123.55M on April 4 while PUSD surrendered 80% of its DEX TVL the same day. GHO's grade slipped to B but its DEX TVL doubled to $84.95M, a textbook case of deteriorating credit quality met by speculative positioning. The 38 grade transitions across the week, nearly 5.5 per day, indicate a market where ratings are not sticky.
The yield war among USDS, USDe, and USDf deserves structural attention. All three were still doubling 30-day averages by Sunday, April 6. If that pace holds, it stops being a promotion and starts being a cost of capital that somebody has to fund. The DEWS ALERT count doubling from 6 to 12 on April 2 was a midweek warning flare; by week's end it had faded, but the conditions that triggered it, aggressive yield competition paired with rapid capital rotation, have not resolved. BEDROCK left the building. The reasons it arrived have not.