[Weekly] Market Return on StableCoin-based Strategies（21 Feb 2022)
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 21 Feb. 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 21 Feb:
- Risk Free Rate: 1.60%. Risk free rate, representing the safe yield from Compound, Aave and Curve, fruther declined from last week’s 1.69%. Market continued to decline, and as a result, more funds are parked into stablecoins, lowering the overall risk-free returns.
- Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 5.5%, lower than last week’s 6%. A declining CRV price is the reason for it mostly and there was a lack of innovation in the De-Fi space in general recently, so most funds are back to the traditional platforms.
- Other Stablecoin Platforms: the yields vary from 6% ~ 26%, and averaged 12%, same as last week’s 12%. Vesper Finance’s DAI (aggressive) vault has generated 25% annualised ROI over the last three days, as displayed in its website, but with no further details on the specific strategy. Maple Finance’s vaults have performed well in the declining market; its yield is good but you have to lock the principal for 90 days.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from negative to 119% now. Mirror Prorocol’s vaults continued to top the ROI rate, despite MIR price was weak in its rebound. Mirror’s high yield (on Ethereum) was due to a decline in total TVL in each vault, and this happened since Jan this year or even earlier. Mirror has also discontinued its IAU vault, so we have replaced that with iUSO-UST (oil) vault for tracking purposes. We are still of the review that UST is less safe than other fully or over-collateralised stablecoins; UST is also less diversified in terms of utility compared to its peers from the same algothrism stablecoins like FRAX. Therefore, a higher premium is justifiable for UST-denominated products.
- Uniswap/Alpha: Uniswap earnings were average last week as well, for half stablecoin, half ETH pairs, as the market was quiet and largely pessimistic.
- Binance Coin-Margined Funding Rate: funding rates were mostly positive with BNB being negative last week. A prolonged period of low but positive funding rates are typical, in our observation, for heralding a slowly declining 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, 21 Feb 2022, Twitter: https://twitter.com/SerenityFund)