[Weekly] Market Return on StableCoin-based Strategies（27 Dec 2021)

We provide a weekly update of the platforms we track, based on the strategies discussed in Serenity Fund’s Overview of Stablecoin Investments and the periodical updates.

(Note: Yields derived from mining reward tokens are based on the prices of tokens on 27 Dec. Yields that are cumulative, e.g. Uniswap and Compound’s basic earnings and Binance funding rates, and are actual yields over last week, compounded weekly to derive the APY.)

Quick analysis on 27 Dec:

• Risk Free Rate: 3.22%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was a lot higher than last week’s 2.74%. Over the past week the market moved up significantly, with ETH breaking $4000 again and Defi protocols moving up 10%-20% in general.
• Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 14%, higher than last week’s 11%, due to a major correction of $CRV. $CVX also inched up due to announcement of launch of Frax Finance markets. Yearn has made major moves as well with an intention of making a Curve-like staking program.
• Other Stablecoin Platforms: the yields vary from 6% ~ 23%, and averaged 14%, marginally higher than last week’s 13%. mStable’s pool topped this category this week again. After Fei Protocol’s merger with Rari Protocol, $TRIBE price went up a bit as holders were generally positive about this merger. Vesper’s new initiatives like Earning Pool and Aggressive Pool did not generate much TVL for the protocol, but as a result the yields remained decent (not reflected in the above table). Idle Finance has launched a tranching product and our analysis will follow this week.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategies are delivering 5% to 48% yield now. Fixed Forex’s EUR pool in Yearn has topped this category.
• Uniswap/Alpha: Uniswap earnings were still not strong last week, for half stablecoin, half ETH pairs, despite there being an upward move in the market.
• Binance Coin-Margined Funding Rate: funding rates remained low but all positive last week.

The above summary is a snapshot of what the market looks like over the last week and as of Monday. This is by no means the portfolio of any of Serenity Fund. Neither is the above table meant to be a ranking table nor to be exhaustive. There are various other defi protocols and products that can offer different risk and return exposures. Follow our Twitter below to have more timely and detailed information on the defi market.

(Serenity Team, 27 Dec 2021, Twitter: https://twitter.com/SerenityFund)