[Weekly] Market Return on StableCoin-based Strategies（11 Apr 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 11 Apr. 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 11 Apr:
- Risk Free Rate: 2.10%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was lower than last week’s 2.40%. The market turned south for most of the week, from the mini-bull run two weeks before.
- Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 7.5%, lower than last week’s 7.8%. This is in line with the downward correction. Further, from this week onwards, we are adding the Curve TVL for pools in this category, for tracking fund flows.
- Other Stablecoin Platforms: the yields vary from 5% ~19%, and averaged 11%, lower than last week’s 13%. We have replaced Idle’s pool with Gro’s incentived pool. Gro Protocol’s PWRD-3CRV pool is currently yielding 19% (compounded weekly) and topped this category. Gro issues a stablecoin fund with senior tranche PWRD token and junior tranche VAULT token. Other platforms have seen declining yields generally, in line with the market sentiment.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from negative to 76% now. Mirror Prorocol’s USO (oil) vault continued to top this category. The yield of Mirror protocol products have priced in UST risk, synthetic asset risk, and commodity risk (oil and silver) on top of conventional DeFi risks, and therefore the yield is high. The yield for EURN was higher than other EUR products, as the fear of depegging is still looming. Despite that USDN and EURN have both restored peg (at 0.98 now), the underlying concerns are not address (refer to our Twitter for more details).
- Uniswap/Alpha: Uniswap earnings were low last week as well, for half stablecoin, half ETH pairs, as trading volume subdued after a short bull-run.
- Binance Coin-Margined Funding Rate: funding rates were mostly positive but low, as the market participants are mostly taking a cautious approach now.
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, 11 Apr 2022, Twitter: https://twitter.com/SerenityFund )