[Weekly] Market Return on StableCoin-based Strategies (18 Jan 2021)

  • Again, if you have purchased BTC, or ETH, or LINK and hedged the full amount in a CEX like Binance or Huobi, your yield is from 60% to 70%. This week’s champion goes to YFIUSDT, again. (Note on the above point: individuals might have to look at this slightly differently: if you only have one asset class, you have to use the Coin-future funding rates, which are lower. We have a portfolio and therefore we have access capital, so in practice we use USDT-future funding rates.)
  • 1inch’s yield (Mining Rewards + Basic Yield from trading commissions) are consistently higher than yields of Uniswap. We have been looking at 50% to 80% total yields from 1inch’s ETH-stablecons pairs (with exception of ETH-USDC lower for a few days). A strong 1inch token further makes the yield better. The market seems to read that 1inch is undervalued, as a viable competitor of Uniswap. You can refer to our version of analysis here: 1Inch, MooniSwap and Chi GasToken — Would the Triple Challenge to Uniswap work?
  • Curve’s pools were also strong last week, as CRV reached new highs. It was due to a collaboration between and Synthetix, which potentially offer slippage free transactions — by ways of swapping virtual assets over Synthetix. This is interpreted as a major change to AMMs (not only Uniswap but all AMMs).
  • Frax Finance was delivering over 100% yield last week, due to a strong FXS. Its forks started to surface as well. We will be looking further into this.
  • Mythil Cash and its forks prevail as well. We think algo-stablecoins (defined as stablecoins adjusting supply and demand based on a bond) are risky and do not advise to go into it, unless you are looking at very short-term gains and prepared with the unpegging risks.
  • Curve has added Lido Finance’s stETH of a new pool, and the yield was reasonably good last week, although the first ETH pool, sETH, is catching up now with a rising CRV.



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The Serenity Fund

The Serenity Fund

Zero market risk and stable return - risk neutralised cryptocurrency fund.