[Weekly] Market Return on StableCoin-based Strategies（11 July 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 July. 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 July:
- Risk Free Rate: 0.67%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was higher as last week’s 0.52%, as a result of the market rebounding. The market stabilized as no more unexpected bad news came out; but there was also no incentive to be aggressive.
- Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 4.7%, higher than last week’s 4.4%. This is in line with a massive rebound of CRV and CVX prices. TVLs from most pools inched up a bit.
- Other Stablecoin Platforms: the yields vary from 1% ~ 20%, and averaged 9%, slightly higher than last week’s 8%. Abracadabra’s MIM pool (with incentives from Convex, as a result of bribes) continued to lead this category this week. We have recently published a research paper on MIM to cover this protocol. D3 pool (alUSD, Fei and Frax) is delivering good yield too.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 2% to 13% now. Euro and gold continued to decline but their yields came back a bit, as liquidity exited these pools. Overcollateralised stablecoins, MIM and MAI, are providing yields over 10%, probably the highest during this period of time.
- Uniswap/Alpha: Uniswap earnings were weak last week, for half stablecoin, half ETH pairs, as trading volume did not pick up much despite market calmed down.
- Binance Coin-Margined Funding Rate: funding rates were still all negative except for ETH, probably one of the safest places to park funds 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 July 2022, Twitter: https://twitter.com/SerenityFund )