[Weekly] Market Return on StableCoin-based Strategies(18 Apr 2022)

  • 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.

--

--

--

Zero risk and 20% return - risk neutralised cryptocurrency fund.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

[Strategy Paper] Overview of Stablecoin Investments

[Company Watch] Liquity, the Challenger of MakerDao

Ethereum Classic (ETC) is currently being 51% attacked

CoinEx | Website UI Fully Updated: Improved Visual and Trading Experiences for Users

What you should know about the new Bitcoin ETF?

Six Easy Steps On How To Buy Altcoins On Altbase

[Company Watch] Harvest Finance, the Passive Defi Fund Earning the Risk-Takers’ Money

friesDAO

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
The Serenity Fund

The Serenity Fund

Zero risk and 20% return - risk neutralised cryptocurrency fund.

More from Medium

[Weekly] Market Return on StableCoin-based Strategies(11 Apr 2022)

The best and easiest way to manage your Aave v3 position

Is decentralized finance dead ? From DeFi 1.0 to now

Increase LP interest rates from 2% to 18% — How Advias Protocol Works