[Weekly] Market Return on StableCoin-based Strategies(26 September 2022)

  • Risk Free Rate: 0.70%. Risk free rate, representing the safe yields from Compound (USDC), Aave (USDC) and Curve (3-pool), was marginally lower than last week’s 0.72%. There was further decline in terms of prices after Fed has expressed a strong stance over rate hikes, and this affected the market confidence for both crypto and non-crypto investments.
  • Curve/Yearn/Convex: 2.4%. The Curve/Yearn Large-Cap Benchmark Rate is marginally lower than last week’s 2.5%, in line with the decline in reward token prices. Compared to last week, TVLs of 3pool rebounded significantly.
  • Other Stablecoin Platforms: the yields vary from 3% ~ 11%, and averaged 6.3%, higher than last week’s 5.7%. Higher yield in uncollateralised lending pools such as Truefi and Maple pushed the yields higher. Some surprise from Gro Protocol (likely due to one-time fees) contributed to the higher average yield as well. The fundamentals remain unchanged and the yields are generally low, in line with the market sentiment.
  • Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 3% to 11% now. EUR and gold both had new lows due to a strong USD, and this had impact on quasi-stable products like xaut-3crv, which has a lower yield and also its principal value had shrunk. EVM protocols have improved returns, as the merger of Ethereum seems to be smooth and more activities are taking place now.
  • Uniswap V2: Uniswap earnings were average, for half stablecoin, half ETH pairs, as the market calmed down despite pessimism still being the mood.
  • Binance Coin-Margined Funding Rate: funding rates were a mix and positive and negative last week, with DeFi tokens taking some advantage, but the selling press on ETH remained.

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The Serenity Fund

The Serenity Fund

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