[Weekly] Market Return on StableCoin-based Strategies(25 Oct 2021)

  • Risk Free Rate: 5.86%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was slightly lower from last week’s 6.13%. This is still quite high as we are in a bullish market; otherwise during summer this year, risk free rate was around 2%-3%.
  • Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 20%, higher than last week’s 15%. This was due to a very strong CVX and CRV recently.
  • Other Stablecoin Platforms: the yields vary from 11% ~ 33%, and averaged 20%, up from last week’s 19%. Frax Finance’s liquidity pool on Uniswap V3 topped this category. There was a general rise in the yields but not as fast as BTC and ETHs, as the alt-coins (mostly platform tokens here) typically lag mainstream coins in a bull market.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 15% to 68% yield now. This week, the yield from Mirror Protocol’s silver-UST pair contiued to top. The penalty rate for Polygon is 8.78% (the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum, down from last week’s 12.33%) and 3.24% for Arbitrum (the difference of Curve 3pool on Ethereum and Curve 2pool on Arbitrum, up from 1.14% last week).
  • Uniswap/Alpha: Uniswap earnings were back to normal last week, for half stablecoin, half ETH pairs. Impernament loss was lower as ETH hovered around the top area and trading volume was decent.
  • Binance Coin-Margined Funding Rate: funding rates are generally over 20%, as a result of a rising market and BTC breaking ATH. Only BNB’s fund rates accumulative over last week was negative, which only turned positive in the past few days but remained largely negative over the week.

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The Serenity Fund

The Serenity Fund

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