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

  • Risk Free Rate: 2.81%. Market was down last week, but risk free rate, representing the safe yield from Compound, Aave and Curve, were similar to the previous week’s 2.87%。
  • Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 9%, same as last week. Convex is still leading, despite heavy pressure on $CRV. We also note that cvxCRV has moved away from $CRV for over 5% since last Friday, indicating a preference for liquidity over yield.
  • Other Stablecoin Platforms: the yields vary from 8% ~ 20%, and averaged 14%, declined marginally from 15% of last week. Stabilize Finance topped this category this week. We will be making a further adjustment of the composite platforms this week or next, as some the platforms yield continued to decline below the yield of Curve majors, making the risk not justifiable.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 10% to 30% plus yield now, a drop from last week. Mirror’s iSLV-UST pool topping this category and also globally, but it’s declining as well. The penalty rate of 2.63% is the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum. We will be adding Polyquity next week.
  • Uniswap/Alpha: Uniswap earnings were moderate last week at the rate of 15%, for half stablecoin, half ETH pairs. Alpha Homora did slightly better due to a hike in platform rewards last week.
  • Compound Leveraged Yield: at 70% leverage, the total return from this strategy is about 16% plus last week. Note that this strategy can also be used to hedge USDT exposure.
  • Binance Coin-Margined Funding Rate: refunding rates varied across coins are mostly negative, indicating a bearing market sentiment.

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The Serenity Fund

The Serenity Fund

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