[Weekly] Market Return on StableCoin-based Strategies (10 May 2021)

  • We have updated the overview strategy paper to address each category. It’s published on Medium and Twitter.
  • We have standardised all ROI to APY, thus renaming the spreadsheet to “APY Calculations”. All returns are based on the APY info provided by the platforms, or otherwise compounded WEEKLY, if only APR is provided.
  • We have changed the source of Binance COIN Futures Funding Rate to be COIN-margined (previously USDT-margined, as it’s part of Uniswap hedging strategy). Now it’s an independent strategy.
  • We have added averages for Curve/Yearn strategy and Other Stablecoin Platforms strategy. As they are actually not strategies, so we provide an average in case one wishes to diversify.
  • Overview: ETH seems to be the only coin rising last week, so whilst market is bullish, a lot of attention was given to meme-coins. De-Fi platforms were lurkwarm, so the yields were not too different. As a side note, we are of the view that the recent hype was driven by MakerDAO raising DAI cap — this is essentially increasing M1 level of monetary supply of cryptocurrency world. And as it’s linearly increasing, so the hype will last for a while. Good for all, and good for De-Fi.
  • Curve/Yearn: earnings inched a bit higher than last week as CRV increased. The Curve/Yearn Large-Cap Benchmark Rate is now 28%, vs 27% last week. Curve is now making its LP tokens as collaterals for lending, e.g. In Unit Protocol, and there the stablecoins in circulation will be increased further — this is more like M2 in monetary policy term.
  • Other Stablecoin Platforms: the yields vary from 20% ~ 60%, and averaged 40%. We have added Liquity’s Stability Vault and Wasabi from this week onwards, making the total to be 10 now.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: yields are diverse. Mirror Protocol are now over 100%, after we have adjusted its APR displayed in the official website to be APY (compound weekly). Ruler has come down significantly due to a droppying price of RULER.
  • Uniswap/Alpha: Uniswap earnings were hot last week, at about 50% to 90%. This is partially due to adjusting the APR to APY; and the funding rates last week were higher too. Leveraged Alpha Homora, the yield on USDC-ETH pair was 160% now. However, impermanent loss was hugh last week as well, due to the rising ETH.
  • Compound Leveraged Yield: at 70% leverage, the total return from this strategy is about 30% last week.
  • Binance Coin-Margined Funding Rate: we have amended the spreadsheet to include COIN-margined funding rate, making it an independent strategy. BNB topped last week’s gains with 60% APY.

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The Serenity Fund

The Serenity Fund

Zero market risk and stable return - risk neutralised cryptocurrency fund.