[Weekly] Market Return on StableCoin-based Strategies (19 April 2021)

We provide a weekly update of the platforms we track, based on the Serenity Fund’s original strategy on investment of stablecoins, and its subsequent updates, most importantly the March Update. The chart below summarises the returns on investment of stablecoins:

(Note: Yields derived from mining reward tokens are based on the prices of tokens on 19 April. Yields that are cumulative, e.g. Uniswap and Compound’s basic earnings and Binance funding rates, are actual yields over the last week annualised.)

Quick analysis on 19 April:

  • Over last weekend, the market dropped significantly. Whilst it did not impact the value of stablecoins, it did affect the yields of stablecoin investment strategies. As such, we saw an overall drop of yields cross board of about 20% from the previous few weeks.
  • Curve and Yearn rates are about 17% to 32% now, Yearn has the benefit of compounding more frequently due to its size advantage and offered higher yields in the event of a declining CRV price.
  • Other stablecoin platforms saw declines in earnings into the range of 20% to 30%.
  • Exotic (non-USD) strategies yields were around 70% to 110% now, down 10% to 20% from the week before. However, as the yields are still high, they do not look too bad. Top pool goes to Cover Protocol’s BADGER, thanks to a more stable BADGER price.
  • A volatile market is always good for liquidity providers. We saw overall yield increase on Uniswap liquidity providing. Funding rates were higher during earlier part of the week, so the average return for the week were high.

Last week, we have also covered a few more platforms, mainly focusing on the investment of ETH-denominated products, in line with our launch of the ETH denominated product. Follow us to get more details on this!

(Serenity Team, 19 April 2021, Twitter: https://twitter.com/SerenityFund)