[Weekly] Market Return on StableCoin-based Strategies(22 August 2022)

  • Risk Free Rate: 0.72%. Risk free rate, representing the safe yields from Compound (USDC), Aave (USDC) and Curve (3-pool), was marginally lower than last week’s 0.75%. Last week, the market declined significantly, with ETH and other major coins declining over 20%. This is more likely to be a correction over a month-long up market; no substantially bad news on the fundamental side.
  • Curve/Yearn/Convex: 3.9%. The Curve/Yearn Large-Cap Benchmark Rate is lower than last week’s 4.6%. This is a result of declining CVX and CRV prices mainly.
  • Other Stablecoin Platforms: the yields vary from 2% ~ 13%, and averaged 6.4%, lower than last week’s 7.6%, again due mainly to declining reward token prices across the board. TrueFi’s USDC Pool continued to top this week. Liquidity for this pool for now is not a pertinent issue now; the only risk being the credit-worthiness of the borrowers now. Bastion Trading is now the largest and main borrower now.
  • Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 3% to 12% now. ibEUR continued to deliver good yields for its pairs with agEUR and sEUR, and remained a global top this week. Both Velodrome’s USDC-sUSD pool and Abracadabra’s MIM pool on Arbitrum had yields over 10%, which are rare nowadays.
  • Uniswap/Alpha: Uniswap earnings remained lukewarm and delivered average earnings, for half stablecoin, half ETH pairs. In a declining market, the impermanent loss cost is also huge.
  • Binance Coin-Margined Funding Rate: funding rates were all negative, no surprise in a market downturn.

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The Serenity Fund

The Serenity Fund

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