[Weekly] Market Return on StableCoin-based Strategies（28 Mar 2022)

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 21 Mar. 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 28 Mar:

• Risk Free Rate: 2.18%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was significantly higher than last week’s 1.75%. Market has rebounded over last weekend and there’s a strong sentiment that the bull market is back.
• Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 7.6%, higher than last week’s 5.4%. The price of CVX has risen substantially to over $30 over the last week, from the below $20 levels a week ago; and this had a major impact in Convex yields. CRV prices increased to a lesser extent, but also contributed to the higher yields in Curve pools and its derivatives. In addition, new products launched last week, in particular Stargate, had drained stablecoins, pushing yields higher as well.
• Other Stablecoin Platforms: the yields vary from 6% ~18%, and averaged 11%, higher than last week’s 9%. Maple Finance’s Maven 11 vault continued to top this category this week. A rising market has resulted into higher yields. Stargate, a new cross-chain service provider, has launched farming with average 20% yields on USDC and USDT pools in several major chains and amassed a TVL of over $3 billion by now. This drew capital out of other stablecoin pools in other platforms, resulting into higher yields for pools related to USDC and USDT.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 2% to 77% now. Mirror Prorocol’s USO (oil) vault continued to top this category; we expect this to continue for a while. Yield from Convex’s gold pool Xaut-3Crv keeps on declining, and so are other EUR- denominated pools. Capital flew into these pools, as they are probably the best non-USD related products in the crypto markets. Yields from EVM chains are less attractive than their Ethereum peers, taking into cross-chain penalties.
• Uniswap/Alpha: Uniswap earnings were average last week as well, for half stablecoin, half ETH pairs, as the market rebound happend only over the weekend.
• Binance Coin-Margined Funding Rate: funding rates were mostly positive, indicating a change of confidence of market participants.

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, 28 Mar 2022, Twitter: https://twitter.com/SerenityFund )