[Weekly] Market Return on StableCoin-based Strategies（21 Mar 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 Mar. 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 Mar:
- Risk Free Rate: 1.75%. Risk free rate, representing the safe yield from Compound, Aave and Curve, declined marginally from last week’s 1.82%. Market was quite over last week, with prices recovering a few percent cross the board. Despite there was good news on war front and Fed has decided on the first interests rate hike, market participants are still cautious.
- Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 5.4%, higher than last week’s 4.7%. This is due mainly to the rising prices of CRV and CVX, which rebounded after a long period of suppression.
- Other Stablecoin Platforms: the yields vary from 6% ~15%, and averaged 9%, same as last week’s 9%. Maple Finance’s Maven 11 vault continued to top this category this week. Most platforms inched up a bit in terms of yield, due to the rising prices of platform tokens.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from negative to 80% now. Mirror Prorocol’s USO (oil) vault topped this category; its yield is coming down from over 100% APY as more fund risked on into Mirror, from $2.7m one month ago to $4.6m today . Yields from other EVM chains are average, with TraderJoe’s stablecoin farms being negative after adjusting the cross-chain risk penalty.
- Uniswap/Alpha: Uniswap earnings were low last week as well, for half stablecoin, half ETH pairs, as the market was cautious.
- Binance Coin-Margined Funding Rate: funding rates were a mix of positive and negative, as traders are holding on to their bets.
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 Mar 2022, Twitter: https://twitter.com/SerenityFund)