Sep 20, 2021
2 min read
[Weekly] Market Return on StableCoin-based Strategies（20 Sept 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 Sept. 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 Sept:
- Risk Free Rate: 4.14%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was lower than last week’s 5.34%, as the market sentiment was low now. There’s uncertainty in both the crypto sectors as well as the traditional financial sectors.
- Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 11%, down from last week’s 11%, in line with the declining market. The liquidity pool rewards of cvxCRV (Curve Factory pool, staked in Convex) is now having the same yield of staking CRV directly with Convex Finance, reflecting an efficient market.
- Other Stablecoin Platforms: the yields vary from 8% ~ 25%, and averaged 16%, down from last week’s 17%. Frax topped this category this week, as yields from WasabiX and MIM dropped. Larger platforms like Vesper and Truefi have lower yields, reflecting their lower risk premium. We will be making further changes to this category, with the possibility of adding Fei’ FEI-3CRV pool or Fuse pools from Rari Capital.
- Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 15% to 57% yield now. Mirror Protocol maintained its status on the top. The penalty rate of 4.14% is the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum, went up from last week’s 3.31%. The yield from Polygon platforms are now stably in the range of high-teens. We have added QiDao’s new farming pair on Quickswap this week, with a moderate yield of 18.2%.
- Uniswap/Alpha: Uniswap earnings were back to mid-teens, for half stablecoin, half ETH pairs, as market was bumpy but maintained within a range.
- Binance Coin-Margined Funding Rate: funding rates are positive, but were lower compared to the week before.
(Serenity Team, 20 Sept 2021, Twitter: https://twitter.com/SerenityFund)
