[Weekly] Market Return on StableCoin-based Strategies（31 Jan 2022)

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 31 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 31 Jan:

• Risk Free Rate: 2.14%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was comparable to last week’s 2.12%. Market did not rebound too much from the crash the week before, but stabilized.
• Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 7%, comparable to last week’s 7%. Incentive tokens’ prices did not change much over last week, so the level of yields remained similar to that of last week.
• Other Stablecoin Platforms: the yields vary from 5% ~ 41%, and averaged 14%, higher than last week’s 11%. This is due to the saga around Abracadra and Frog Nation, where some distrust issue was debated in the communities. Whilst the mechanism of MIM is not affected, capital fled out of MIM-related products, thus pushing the yield higher for those stayed put. Barring Abracadabra, the average yield from this category would have been 11.5%, comparable to that of last week.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategies are delivering 4% to 28% yield now. EURN products came to top this week, with Neutrino’s EUR pool on Convex delivering 28% yield. There are higher yields for MIM or UST related products in other protocols, e.g. there’s a systematic increase in the yield of all MIM pairs’ yields across most AMMs, like TraderJoe. However, we believe the Abracadabra distrust issue will be temporary and the yields will adjust to normal levels.
• Uniswap/Alpha: Uniswap earnings were weak last week as well, for half stablecoin, half ETH pairs, and this is typically the case in a lukewarm market.
• Binance Coin-Margined Funding Rate: funding rates were mostly negative last week, reflecting a disinclination to hold long positions market-wide.

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, 31 Jan 2022, Twitter: https://twitter.com/SerenityFund)