[Weekly] Market Return on StableCoin-based Strategies（23 August 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 23 August. 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 23 August:
- Risk Free Rate: 5.73%. Risk free rates increased significantly this week, due mainly to a much higher prevailing supplying interest for USDC on Aave. Risk free rate, representing the safe yield from Compound, Aave and Curve, was up from last week’s 4.14%。
- Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 17%, same as last week’s 17%. On one hand, CRV price has increased substantially, on the other hand, more liquidity has come back to mining. Convex is still leading and cvxCVR has maintained.
- Other Stablecoin Platforms: the yields vary from 7% ~ 30%, and averaged 18%, decreased from 20% last week. Wasabi topped this category this week, despite its yield was down from last week, as more funds moved in as its v2 stabilized.
- Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 26% to 51% yield now. Mirror Protocol came back to top, as Polyquity’s yield stabilized with more liquidity into its new stablecoin V2 pool on Sushiswap.The penalty rate of 0.08% is the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum, narrowed from last week’s 4.52%. This is largely due to the level of transaction on Aave poly on Ethereum and this is more like to be temporary.
- Uniswap/Alpha: Uniswap earnings turned positive, for half stablecoin, half ETH pairs. This is due to funding cost turned positive (giving a yield for short) and continued to go higher as market sentiment turned bullish.
- Binance Coin-Margined Funding Rate: funding rates are positive, as market turned bullish.
(Serenity Team, 23 August 2021, Twitter: https://twitter.com/SerenityFund)