[Weekly] Market Return on StableCoin-based Strategies（18 Oct 2021)
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 18Oct. 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 Oct:
- Risk Free Rate: 6.13%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was significantly up from last week’s 4.75%. Due to the news that SEC is going to allow Bitcoin ETF, the market was bullish again.
- Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 15%, higher than last week’s 13%. CRV and CVX as well as other defi protocol tokens were generally on the rise since last week, making the yield higher cross board.
- Other Stablecoin Platforms: the yields vary from 7% ~ 31%, and averaged 19%, down from last week’s 20%. Fei’s incentivsed FEI-3CRV pool is giving out 26.8% APR now (weekly compounded to be over 30%) and topped this category. Other platforms’ yield narrowed around 20%.
- Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 11% to 64% yield now. This week, the yield from Mirror Protocol’s silver-UST pair went back to top. The penalty rate for Polygon is 12.33% (the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum, down from last week’s 9.86%) and 1.14% for Arbitrum (the difference of Curve 3pool on Ethereum and Curve 2pool on Arbitrum, down from 1.75% last week).
- Uniswap/Alpha: Uniswap earnings were back to normal last week, for half stablecoin, half ETH pairs. Impernament loss was lower as ETH hovered around the top area and trading volume was decent.
- Binance Coin-Margined Funding Rate: funding rates are generally over 20%, as a result of a rising market, except for BNB, which had some twists about whether it’s exiting the China market.
(Serenity Team, 18 Oct 2021, Twitter: https://twitter.com/SerenityFund)