[Weekly] Market Return on StableCoin-based Strategies（18 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 18 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 18 Apr:
- Risk Free Rate: 2.37%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was higher than last week’s 2.10%. This was due to a higher than usual trading fee income from Curve, which might be related to the Beanstalk hack.
- Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 9.0%, higher than last week’s 7.5%. This is again due to a higher than usual protocol income from Aave pool in Curve, possibly related to the hack. Excluding Aave, the average yield this week was 5.2%, lower than that from last week’s 6.2%, in line with a declining market. We also noticed that the TVL of all the listed pools increased moderately, contributing to the lowering of yields as well.
- Other Stablecoin Platforms: the yields vary from 4% ~20%, and averaged 9%, lower than last week’s 11%. The yields continued to come down as platform token prices declined further this week. Gro Protocol’s PWRD-3CRV topped this category this week with about 20% yield from its own website; if you choose to deposit the same pool tokens into Convex, the yield can be marginally higher now.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 3% to 55% now. Mirror Prorocol’s USO (oil) vault continued to top this category, despite coming down from its peak of over 100% several weeks back. USDN and EURN did not de-peg now, but the Back-up ratio is merely 116% now (USDN in circulation over the market capital of WAVES token in reserve for backing up), indicating USDN risk is higher than before. Cross-chain penalties are affected by the irregular one-time fee income from the Beanstalk hack to Aave protocols, and therefore might not be accurate this week.
- Uniswap/Alpha: Uniswap earnings were low last week as well, for half stablecoin, half ETH pairs, as the market is turning pessimistic again.
- Binance Coin-Margined Funding Rate: funding rates were mostly negative or low except for UNI, in line with general market sentiment.
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, 18 Apr 2022, Twitter: https://twitter.com/SerenityFund )