[Weekly] Market Return on StableCoin-based Strategies（16 August 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 16 August. 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 16 August:
- Risk Free Rate: 4.14%. Market rose a lot last week and the yields were generally higher than the past few weeks. Risk free rate, representing the safe yield from Compound, Aave and Curve, inched up from last week’s 4.14%。
- Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 17%, higher than last week’s 15%, due to a rising CRV as a result of the rising market. Convex is still leading and cvxCVR has maintained.
- Other Stablecoin Platforms: the yields vary from 10% ~ 43%, and averaged 20%, increased from 17% last week. Wasabi topped this category this week, as it’s migrating to its V2 farms. Abracadabra (MIM stablecoin) also had a good yield close to 30%.
- Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 23% to 186% yield now. We have removed Ruler Protocol until there’s further clarity on its liquidity mining program via Order Book. This week’s top, also the global top, goes to Polyquity. We believe its high yield is temporary as there was a sudden exit of some large funds and its PUSD-USDC pool was small. The penalty rate of 4.52% is the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum, narrowed from last week’s 4.81%.
- Uniswap/Alpha: Uniswap earnings turned positive, for half stablecoin, half ETH pairs. This is due to funding cost turned positive (giving a yield for short).
- Compound Leveraged Yield: from this week onwards, we are removing this strategy from our weekly, as we have no more exposure in this category and the yields were relatively low.
- Binance Coin-Margined Funding Rate: refunding rates are positive, as market turned bullish.
(Serenity Team, 16 August 2021, Twitter: https://twitter.com/SerenityFund)