[Weekly] Market Return on StableCoin-based Strategies(30 May 2022)

  • Risk Free Rate: 1.04%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was the same as last week’s 1.04%. Market has stopped declining, but remained weak. There was not much enthusiasm in defi farming, nor trading.
  • Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 4.9%, marginally lower than last week’s 5.0%. There was not much change in the large pools, so the yield came down even further. Curve has started adjusting down USDT related pools to reduce the backing for USDT, by lowering the A ratios in these pools. As a result, in these pools trading will behave more like Uniswap; some pools showed negative trading yield as a result of this change.
  • Other Stablecoin Platforms: the yields vary from 2% ~ 12%, and averaged 8%, lower than last week’s 9%. TrueFi’s BUSD pool topped this week, and Gro Protocol and Fei Protocol were closely after this. We have observed over the last 18 months that even at the worst times, there were still means to earn a relatively same 10% to 12% yield, reflecting a general risk premium for DeFi.
  • Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 3% to 12% now. EUR pools still topped this week but incentives are disappearing fast. Abracadabra’s incentives on Arbitrum came back to normal levels. A few more EVM platform DeFi protocols have surfaced and been delivering decent yields. We will be adding them to the list over time.
  • Uniswap/Alpha: Uniswap earnings were low last week as well, for half stablecoin, half ETH pairs, as the market did not display much interest in trading in all aspects.
  • Binance Coin-Margined Funding Rate: funding rates were severely negative, except for ETH and BTC, in line with the cautious stance of market participants.

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The Serenity Fund

The Serenity Fund

Zero market risk and stable return - risk neutralised cryptocurrency fund.