[Weekly] Market Return on StableCoin-based Strategies (26 April 2021)

We provide a weekly update of the platforms we track, based on the Serenity Fund’s original strategy on investment of stablecoins, and its subsequent updates, most importantly the March Update. The chart below summarises the returns on investment of stablecoins:

(Note: Yields derived from mining reward tokens are based on the prices of tokens on 19 April. Yields that are cumulative, e.g. Uniswap and Compound’s basic earnings and Binance funding rates, are actual yields over the last week annualised.)

Quick analysis on 26 April:

  • Overview: There was another dip in the later part of last week and but earlier today, we saw ETH rebounded back to over $2400, comparable to a week back. Over platform tokens were catching up ETH as well, but not as fast, so the yield rates at the time of this article were lower about 20% to 30% than last week in general.
  • Curve/Yearn: Curve’s CRV, in particular, was below the last few weeks’ average. One of the main reasons being EPS, Ellipsis’ platform token dropped significantly over the last few weeks. As EPS represents another stream of income to CRV, so the price of CRV is affected as well. As a result, the current Curve and Yearn’s yields are at 10% to 20% plus, lower than the previous few weeks.
  • Other Stablecoin Platforms: the yields vary from 10% to 30%, largely depending on the prices of platform tokens. Vesper continued to be strong as yield was highest amongst the existing platforms. We have added a new platform, Stabilize Finance, which offers UST pool and mixed pool of major stablecoins. Details on the mechanism of this platform can be found in the relevant section in this article here. We have included the more aggressive pool of UST, with current yield at 67%, but the more conservative pool of major stablecoins also offers 40% APR.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: yields were around 50% to 90% now, down 20% from the week before. Yearn’s EUR pool was doing much better than previous weeks. Mirror Protocol’s gold and silver products were higher than the Ruler/Cover dual. We expect Ruler Protocol to innovate with more products after the end of its trial month, and look forward to higher yield products from this platform soon.
  • Uniswap/Alpha: as market dips more more trading volumes, Uniswap pairs gave better yields last week. Leveraged Alpha Homora, the yield on USDC-ETH pair was 88% now. Funding costs were average last week.
  • Compound Leveraged Yield: as more rewards were allocated to USDC, the yields were over 30% last week. In addition, AAVE has launched a version in Polygon chain with MATIC token as incentives. On Binance Smart Chain, Klend is duplicating Compound. This strategy can be applied to both cases. The yields are higher but there’re also risks associated with new chains.

We are finalising the strategies for ETH denominated products and more details will be released this week. We continue to add more platforms to the section of Other Platforms and Exotic Strategies. In addition, we will start to explore other chains like Binance Smart Chain and Polygon, as more capital and platforms are migrating over.

(Serenity Team, 26 April 2021, Twitter: https://twitter.com/SerenityFund)