[Weekly] Market Return on StableCoin-based Strategies(24 October 2022)

  • Risk Free Rate: 0.87%. Risk free rate, representing the safe yields from Compound (USDC), Aave (USDC) and Curve (3-pool), was the same last week’s 0.87%. Yield from Curve dropped slightly, but was compensated by the increase in lending yield from Aave.
  • Curve/Yearn/Convex: 2.3%. The Curve/Yearn Large-Cap Benchmark Rate is higher than last week’s 2.1%. Whilst the rates were fluctuating marginally over the last few weeks, the decline in TVL was more visible. With a strong USD and increasingly higher rates in USD-fixed deposits and municipal bonds coupons, it seems only logical to withdraw funds from the stablecoin industry to seek safer yields in USD directly. We believe if this is to continue, eventually the stablecoin yields will increase (due to less TVL, other thing being equal) to a reasonable premium over the USD risk-free rate. We have discussed this in our recent Overview of Stablecoin Investment report.
  • Other Stablecoin Platforms: the yields vary from 3% ~ 13%, and averaged 6.4%, lower than last week’s 6.7%. This week, TrueFi’s USDT pool continued to top the category. There’s no one borrowing USDT at this moment in TrueFi, so the yield is purely rewards. Whilst the yield from Maple Finance is still good, the liquidity is an issue again. New protocols like Clearpool has a dynamic interest rate which might be an solution for the liquidity issue for uncollateralised lending protocols. A positive note is that Maple has also reduced its initial locking period from 90 days to 30 days, and is working on a V2 to address the liquidity issue as well.
  • Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 4% to 18% now. There has been not much change in EUR and gold products, nor the EVMs. We do notice some new protocols been launched, and are actively monitoring them. The rise in the Mai Finance yield on polygon was due to a drop in TVL and the yield is expected to be smoothed to the average level before.
  • Uniswap V2: Uniswap earnings continued to be low, for half stablecoin, half ETH pairs, as the market continued to be quiet and there was little trading activities.
  • Binance Coin-Margined Funding Rate: funding rates were a mix of positive and negative last week. BTC and ETH are both positive, as well LINK.
  • Research Report: we have a released a new report on Overview of Stablecoin Investment, summarizing the status of stablecoin investments. If you are interested, please visit our website or Twitter for a FREE copy.



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The Serenity Fund

The Serenity Fund


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