[Weekly] Market Return on StableCoin-based Strategies（3 Jan 2022)

Happy new year, everyone!

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 3 Jan. 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 3 Jan:

• Risk Free Rate: 3.09%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was a lot higher than last week’s 3.22%. Market was turbulent last week and the risk free rate came down a bit, as more funds were withdrawn from risky investments to savings.
• Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 13%, lower than last week’s 14%, as a result of the balance of more funds seeking safe harbour during year end and a strong $CVX and $CRV.
• Other Stablecoin Platforms: the yields vary from 6% ~ 23%, and averaged 13%, marginally lower than last week’s 14%. Frax’s pool topped this category this week again. We have added back TrueFi to replace AlChemix, which has a declining yield. Abracadabra’s MIM is now becoming a popular stablecoin and its yield will be more than 5.7% (depositing into Curve) if they are deposited into Convex or other platforms.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategies are delivering 9% to 69% yield now. Fixed Forex’s EUR pool in Yearn has continued to top this category.
• Uniswap/Alpha: Uniswap earnings were still not strong last week, for half stablecoin, half ETH pairs, more signs of a weak Uniswap dominance and in general a weak DeFi 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, 3 Jan 2022, Twitter: https://twitter.com/SerenityFund)