[Weekly] Market Return on StableCoin-based Strategies(30 August 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 30 August. 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 30 August:

  • Risk Free Rate: 4.27%. Risk free rates decreased significantly this week, as USDC lending rate on Aave went back to normal. Risk free rate, representing the safe yield from Compound, Aave and Curve, was down from last week’s 5.73%。
  • Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 13%, down from last week’s 17%. CRV price fluctuated as the market was bumpy. Convex is still leading, which has been one or two months, and cvxCVR has maintained.
  • Other Stablecoin Platforms: the yields vary from 9% ~ 33%, and averaged 19%, inched up a bit from 18% last week. Frax topped this category this week and MIM was doing great as well, since it moved to Curve’s main pool.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 11% to 61% yield now. Mirror Protocol maintained its status on the top. Polyquity’s liquidity shrank a bit but the yield was maintained. The penalty rate of 0.58% is the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum, went up from last week’s 0.08%.
  • Uniswap/Alpha: Uniswap earnings turned positive, for half stablecoin, half ETH pairs. This is due to funding cost turned positive (giving a yield for short) and continued to go higher as market sentiment turned bullish. On the other hand, implied impernament loss was low, as the market moved sideways.
  • Binance Coin-Margined Funding Rate: funding rates are positive, as market turned bullish.

(Serenity Team, 30 August 2021, Twitter: https://twitter.com/SerenityFund)