Sep 13, 2021
2 min read
[Weekly] Market Return on StableCoin-based Strategies（13 Sept 2021)
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 13 Sept. 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 13 Sept:
- Risk Free Rate: 5.34%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was higher than last week’s 4.22%, due mainly to the higher USDC supplying rate on Aave. This affects positively a few other conservative yield management platforms as well, such as Vesper Finance.
- Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 14%, down from last week’s 18%, in line with the declining market. Convex is still leading, which has been one or two months, and cvxCVR has maintained. The liquidity pool rewards of cvxCRV-CRV has higher yield than staking CRV with Convex Finance, but the gap narrowed.
- Other Stablecoin Platforms: the yields vary from 9% ~ 24%, and averaged 17%, down from last week’s 17%. WasabiX topped this category this week. We note that when there’s a bullish market, the range of yields would expand, but would quickly narrow as market cools down. This reflects a relatively efficient market as funds seeking higher yields and resulting into an even yield across similar risk classes.
- Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 17% to 57% yield now. Mirror Protocol maintained its status on the top. The penalty rate of 3.31% is the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum, went up from last week’s 2.35%.
- Uniswap/Alpha: Uniswap earnings were back to mid-teens, for half stablecoin, half ETH pairs. Market is stabilizing after trends relating to EIP1559 and NFTs subdue.
- Binance Coin-Margined Funding Rate: funding rates are positive, but were lower compared to the week before.
(Serenity Team, 13 Sept 2021, Twitter: https://twitter.com/SerenityFund)
