[Weekly] Market Return on StableCoin-based Strategies （1 March 2021)
In line with Serenity Fund’s strategy on investment of stablecoins, we provide a weekly update of the returns. From this week onwards, we are using a new template. This is not only a change of presentation, but also a change of our major strategy. We started with Uniswap liquidity providing and concurrently hedging the coins in Binance. As of now, this strategy only formed a small portion of our portfolio. We have more weights in Curve/Yearn, and other platforms that offer lucrative mining rewards; which are no less than providing liquidity in Uniswap. Thanks for the exuberance.
Quick analysis for the past week:
- Curve (or Yearn if you do not wish to invest in CRV to boost) gave very reasonable yield for last week, with a few pools giving more than 50% APY. We will be publishing more articles on different pools of Curve. In addition, we have an article on the cost and benefit of CRV.
- Other platforms — we include here for now KeeperDao, mStable, Idle Finance, Frax Finance and Vesper Finance — have in general lower yields compared to Curve/Yearn. Exception is Vesper, with over 70% yield.
- If you consider some exotic strategies, like gold-USD pair, EUR-USD pair, or underwriting insurance, than the yield will be higher, e.g. 100%-200%. Nonetheless, the risks are higher in all aspects as well.
- Our traditional strategy of Uniswap Liquidity Providing and Compound Leveraged Mining gave average yields now. Whilst Uniswap’s overall ROI seems to be higher, do remember this is only an estimate, as impermanent loss is point-of-time and not cumulative. So the Uniswap strategy’s actual yield depend on the time you exit.
- Last week, Binance’s funding rates were mostly flat (0.01%) or even negative, so it did not generate much yields. In future, we will further update this to be Coin-Future based funding rates, to better reflect what an individual investor can do.
(Serenity Team, 3 March 2021, Twitter: https://twitter.com/SerenityFund)