[Weekly] Market Return on StableCoin-based Strategies（29 Nov 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 29 Nov. 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 29 Nov:
- Risk Free Rate: 3.48%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was comparable to last week’s 3.52%. Last week, the market had dipped but rebounded on Monday.
- Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 12%, same as last week’s 12%. This is in line with the bumpy market but somehow CRV and CVX prices remained comparable to last week, maybe due to the yield supports of these platforms.
- Other Stablecoin Platforms: the yields vary from 10% ~ 34%, and averaged 21%, marginally down from last week’s 22%. Frax Finance’s liquidity pool on Uniswap V3 continued to lead this category, as other platforms narrowed the yields. There was a significant drop in the yield of Abracadabra, due to a falling SPELL price.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategies are delivering 4% to 97% yield now. Mirror Protocol continued to give a high yield, whilst stablecoin yield on most EVM chains came down fair bit, not only limited to those listed here. It’s hard to find a big platform on any EVM chain delivering over 30% yield.
- Uniswap/Alpha: Uniswap earnings were low last week, for half stablecoin, half ETH pairs. We believe this is a result of other EVM chains stealing market share (of trading volume and TVL).
- Binance Coin-Margined Funding Rate: funding rates remained around low teens in this bumpy market.
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, 29 Nov 2021, Twitter: https://twitter.com/SerenityFund)