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

  • Risk Free Rate: 0.70%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was higher as last week’s 0.67%, as the market continued to rise over most of the last week. The bearish sentiment was subdued and there was enthusiasm about what’s going to happen, revived NFT markets, ETH 2.0 and a few more concepts.
  • Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 3.5%, lower than last week’s 4.7%. Whilst the rewards tokens have a higher price in line with the market rebound, the incentives from Iron Bank pool were terminated this week, dragging down the yield significantly. TVL for most pools were slightly less than before, and half of the funds fled out of the Iron Bank pool.
  • Other Stablecoin Platforms: the yields vary from 2% ~ 22%, and averaged 8%, slightly lower than last week’s 9%. Abracadabra’s MIM pool continued to lead this category this week. Liquidity issues in Maple and Truefi did not improve much — liquidity is still tight, despite the yields being amongst the highest. Frax and D3 pool had very low yields as protocols behind these pools are now cautious about incentives, e.g. Fei Protocol has stopped incentives totally.
  • Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 2% to 17% now. Euro dropped below $1 last week and gold price has reached a lower level than before Russia-Ukrain war. Yields from these alternative assets are slightly better than last week. IbEUR pool on Convex has much higher yield (over 40% as is) now but the pool size is yet small and plus ibEUR is trading at a slight discount as well. All MAI related pools on Polygon and also Fantom are still delivering good yields, thanks to a higher Qi price.
  • Uniswap/Alpha: Uniswap earnings were reasonably good last week, for half stablecoin, half ETH pairs, as market seems to be awakening from a month-long bearish market.
  • Binance Coin-Margined Funding Rate: funding rates were positive for BTC, ETH and defi tokens, but very negative for others.



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 market risk and stable return - risk neutralised cryptocurrency fund.