[Weekly] Market Return on StableCoin-based Strategies (3 May 2021)

We provide a weekly update of the platforms we track, based on the Serenity Fund’s original strategy on investment of stablecoins, and its subsequent updates, most importantly the March Update. The chart below summarises the returns on investment of stablecoins:

(Note: Yields derived from mining reward tokens are based on the prices of tokens on 3 May. Yields that are cumulative, e.g. Uniswap and Compound’s basic earnings and Binance funding rates, are actual yields over the last week annualised.)

Quick analysis on 3 May:

  • Overview: Market was on the rise with ETH hitting all-time-high recently and defi tokens more or less benefited from the market sentiment. On the other hand, a lower gas price incentised investments. This week’s yield is slightly higher than last week in general.
  • Curve/Yearn: Curve’s CRV rebounded to be over $3 and the yields of Curve and Yearn thus came back to the 20% ~ 30% range. We have changed the BUSD v1 pool to v2 and replaced y-pool with Ironbank vault. We have also include an average for the 5 pools (excluding 3pool itself), to reflect Curve/Yearn earnings with large-cap stablecoins (USDT, USDC, DAI, sUSD and BUSD). We name it Curve/Yearn Large-Cap Benchmark Rate, currently at 27%.
  • Other Stablecoin Platforms: the yields vary from 20% ~ 50%, largely due to the rising prices of platform tokens. Stabilize UST pool topped this category. We have added xSigma and TrueFi from this week onwards. Do note that some platforms have additional fees and lock-ups, or you can choose to boost the yields. Follow our Twitter or Medium to get updated.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: yields were around 50% to 100% now. Yearn’s EUR continued to deliver yield and Mirror Protocol were as steady as always. Cover Protocol’s BADGER pool topped due to a rising token price. Cover is also launching v2 next week and we will update accordingly then.
  • Uniswap/Alpha: Uniswap earnings back to normal, at about 20% to 30%. Leveraged Alpha Homora, the yield on USDC-ETH pair was 64% now. Funding costs were average last week. Do not compare the yield from this strategy to others, as impermanent loss estimate is point-of-time and not continuous, it only depends on when you exit the pool.
  • Compound Leveraged Yield: at 70% leverage, the total return from this strategy is about 20% last week.

As the defi space is getting complicated, we will be summarising again our core strategies in this week’s articles. Do follow up to find out more.

(Serenity Team, 3 May 2021, Twitter: https://twitter.com/SerenityFund)