[Weekly] Market Return on StableCoin-based Strategies（20 Dec 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 20 Dec. 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 20 Dec:

• Risk Free Rate: 2.74%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was lower than last week’s 2.98%. Market turned slightly bearish last week.
• Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 11%, same as last week’s 11%, in a lukewarm market like this.
• Other Stablecoin Platforms: the yields vary from 4% ~ 24%, and averaged 13%, marginally lower than last week’s 14%. mStable’s pool topped this category this week, despite yield from Frax was also over 20%. We have replaced Maple Finance’s USDC product over Truefi, as both have a similar business of un-collaterolised lending and Maple has better yields due to incentives given. Vesper has launched its Aggressive Pools and Earn Pools, allowing you to invest stablecoins and swap earnings1 into BTC or ETH.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategies are delivering 10% to 40% yield now. Mirror Protocol maintained the lead this week, with MIR price recovering steadily.
• Uniswap/Alpha: Uniswap earnings were single digit last week, for half stablecoin, half ETH pairs. This is expected in a down market.
• Binance Coin-Margined Funding Rate: funding rates were low, and BNB was negative in the down market.

The above summary is a snapshot of what the market looks like over the last week and as of Monday. This is by no means the portfolio of any of Serenity Fund. Neither is the above table meant to be a ranking table nor to be exhaustive. There are various other defi protocols and products that can offer different risk and return exposures. Follow our Twitter below to have more timely and detailed information on the defi market.

(Serenity Team, 20 Dec 2021, Twitter: https://twitter.com/SerenityFund)