[Weekly] Market Return on StableCoin-based Strategies（10 Jan 2022)

We provide a weekly update of the platforms we track, based on the strategies discussed in Serenity Fund’s Overview of Stablecoin Investments and the periodical updates.

(Note: Yields derived from mining reward tokens are based on the prices of tokens on 10 Jan. Yields that are cumulative, e.g. Uniswap and Compound’s basic earnings and Binance funding rates, and are actual yields over last week, compounded weekly to derive the APY.)

Quick analysis on 10 Jan:

• Risk Free Rate: 2.82%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was lower than last week’s 3.09%. There was a major correction last week in the market prices with BTC and ETH breaking recently bottoms and the market sentiment was very bearish.
• Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 10%, lower than last week’s 13%, in line with the bearing market sentiment. Prices of CRV and CVX have declined generally in line with the market, leading to a lower yield of all Convex pools.
• Other Stablecoin Platforms: the yields vary from 7% ~ 26%, and averaged 14%, marginally higher than last week’s 13%. Frax’s pool topped this category this week again, as Frax is delivering a ve- staking system, similar to that of Curve; this helped to increase the demand for FRS and pushing yield higher. The higher average return was also due to our change of MIM’s yield from Curve’s pool to Convex pool, as Abracadabra is incentivising Convex pools via Votium now. So we believe the yield from Convex for MIM is a more accurate reflection of its yield.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategies are delivering 4% to 41% yield now. Fixed Forex’s EUR pool in Yearn has continued to top this category, as Mirror Protocol’s yield is lowered due to a weak MIR. Innovation around EUR as the new stablecoin base currency continued, reflecting demand from Europe in the cryptocurrency market.
• Uniswap/Alpha: Uniswap earnings were still not strong last week, for half stablecoin, half ETH pairs, more signs of a weak Uniswap dominance and in general a bearish DeFi market.
• Binance Coin-Margined Funding Rate: funding rates remained low but all positive last week.

The above summary is a snapshot of what the market looks like over the last week and as of Monday. This is by no means the portfolio of any of Serenity Fund. Neither is the above table meant to be a ranking table nor to be exhaustive. There are various other defi protocols and products that can offer different risk and return exposures. Follow our Twitter below to have more timely and detailed information on the defi market.

(Serenity Team, 10 Jan 2022, Twitter: https://twitter.com/SerenityFund)