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

In line with Serenity Fund’s strategy on investment of stablecoins, we provide a weekly update of the returns.

Quick analysis for the past week:

• Last week, providing liquidity was a good idea, whether you did it in @UniswapProtocol or better still in @1inchExchange. The yield was 50% to 80% APY, for ETH-Stablecoin pairs. Balancer was not as much, despite its price went up as well.
• Earning funding rates last week on Binance or Huobi, coin-based futures, would give you about 30% to 40%, if you were using $ETH or $BTC.
• Compound leveraged mining would give you 20% to 30% up and down, from supplying USDT and borrowing $USDC or $DAI. Thanks to a rising $comp (at the moment of writing it fell a bit).
• @CurveFinance delivered reasonably good results. $crv were rising last week, too. Conservative pools like Compound pool, or Y pool, or 3pool, gave you 20%-30% APY; $USDN or $EUR pools could deliver 50% to 60%.
• In addition to stablecoins, you can also mine $CRV by providing $eth on Curve. sETH pool (by Synthetix) and stETH pool (by @LidoFinance would give 20% and 40% APY, respectively.

In addition, other new portals:

• We have cashed out @fraxfinance, as we had concerns over its pegging stability. Partially due to the fall of @pegscash, which we analyzed in detail in an article last week.
• We have also revisited Mirror Protocol, as it’s getting stable with strong support from the Terra (and UST) community. The issues (risk exposures) are still there, i.e. psychological pegging of synthetic assets, UST pegging, MIR volatility. But UST has been backed by a stable Terra and its community is strong and active — so in the macro environment of “buying the narratives”, we foresee Mirror Protocol to continue to deliver good yields. Whilst it has not a stablecoin pair, we consider its Gold (IAU) or Silver pair with UST comparable to stablecoins. 200% APY is what we are looking at.

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