Executive Summary
DAI cycled back into WATCH at $4.60B mcap while USDT printed -$3.87B across three sessions; spUSDT and WTGXX absorbed the rotation. PSI midpoint slid to 95.1, BEDROCK held for a 65th day.
The Weekly Risk Leaderboard puts DAI back into WATCH on a CALM-to-WATCH transition scored 18 with $4.60B in mcap and pool balance drift as the driver, its second crossing in five days per the May 29 digest. PSI midpoint slid to 95.1 from the prior week's 96.1, still parked in BEDROCK for what the May 28 digest called its 65th consecutive day, with a 94.1 floor on May 31. The dominant band did not shift; the cushion above WATCH thinned by a full point.
USDT did the heavy lifting in the supply column, posting -$1.39B on June 1, -$1.24B on May 31, and -$1.24B on May 30, a cumulative $3.87B drawdown across three consecutive sessions. Blacklist activity ran in parallel: 110 events worth $23.38M, headlined by a $12.61M USDC freeze on Ethereum on May 30 and a $3.22M USDT Tron blacklist on May 29. Both totals came in lighter than the prior week's 133 events and $27.51M, but the directional pull on USDT supply did not.
Capital did not flee, it rotated. spUSDT printed $1.29B back-to-back on May 27 and May 28, a sum equal to its full market cap per the May 27 digest, and WisdomTree's WTGXX added $958M from a standing start. sUSDS lifted +9 on liquidity score at $6.21B mcap on May 27, and USDf clawed back +13 on June 1 after shedding 15 points on May 31. The yield-bearing layer absorbed roughly what Tether released.
Aggregate mcap fell 0.85% to $349.48B, with active depeg observations down to 82 from 97 and unique signals collapsing to 14 from 24. Grade transitions slowed to 29 from 40; the marquee downgrade was bUSD0 C-to-D at $504.21M mcap on June 1, the only grade event large enough for the weekly board. The Bank Run Gauge midpoint improved to -4.6 from -7.8, even after dipping to -17.4 on May 26.
The structural read centers on liquidity across $14.9B, not pegs. The June 1 digest flagged USDS, PYUSD, and RLUSD shedding 8, 8, and 10 points respectively, a synchronized depth contraction rather than a single failure. pmUSD's chronic 1500 to 2200 bps wedge stayed in the suppressed bucket all week at $77M mcap, exactly where a chronic mid-cap belongs. Next week's tape decides whether USDA finally trips the 225 bps trigger the dailies tracked from 175 on May 27 to its quiet June 1 sit, and whether the four-pool erosion broadens past $14.9B.