[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.




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The Serenity Fund

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

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