[Weekly] Market Return on StableCoin-based Strategies (17 May 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 17 May. 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 17 May:

  • Overview: Market has been declining at the time we were updating the APY table, and there’s no clarity on which direction the market will head to. Although it does not impact our fund much, nonetheless it affects the yields and the frequency of operations.
  • Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 24%, vs 28% last week, as CRV was relatively stable compared to most other reward tokens. Yearn’s boost factor has come down and its net earnings are now slightly less than the major curve pools with 1.5x boost.
  • Other Stablecoin Platforms: the yields vary from 13% ~ 38%, and averaged 25%, a significant drop from last week’s 40%. This is due mainly to the declining prices of reward tokens.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: Mirror Protocol are now over 80%, after we have adjusted its APR displayed in the official website to be APY (compound weekly). Mirror Protocol’s APR are only over 60%, probably as its lowest level for the last one or two months. Ruler’s yield continued to drop.
  • Uniswap/Alpha: Uniswap earnings were great last week, with USDC-ETH and USDT-ETH hitting 80% to 100%. Leveraged Alpha Homora, the yield on USDC-ETH pair is 280% now, after converting APR to APY.
  • Compound Leveraged Yield: at 70% leverage, the total return from this strategy is about 10 to 20% last week, affected by a declining COMP price.
  • 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 34% APY.

(Serenity Team, 17 May 2021, Twitter: https://twitter.com/SerenityFund)

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