[Weekly] Market Return on StableCoin-based Strategies（4 Apr 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 4 Apr. 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 4 Apr:
- Risk Free Rate: 2.40%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was significantly higher than last week’s 2.18%. Market continued to rebound and driving all yields to be higher.
- Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 7.8%, higher than last week’s 7.6%. The prices corrections of CRV and CVX have slowed down and the yields were moderately better than the week before. Incentives from Votium came back to a record high level and this spurred the growth momentum of CVX in the long run.
- Other Stablecoin Platforms: the yields vary from 6% ~21%, and averaged 13%, higher than last week’s 11%. Vesper’s USDC Aggressive Strategy topped this category this week. Other platforms have generally displayed some improvements in yields due to rising prices.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 1% to 70% now. Mirror Prorocol’s USO (oil) vault continued to top this category; we expect this to continue for a while. The yield for EURN was significantly higher than other EUR products, as Neutrino EUR, a Waves Protocol product, has temporarily gone under-peg at 0.92 cent for one EUR. The yield reflects the risk premium the market is asking for a potential depeg. So is the sister product Neutrino USD. There are not many new projects on Ethereum recently nor on other major EVM chains we cover here; there are new farms on new and reletive smaller chaims like Oasis or Astar, but their reliability cannot yet be measured.
- Uniswap/Alpha: Uniswap earnings were average last week as well, for half stablecoin, half ETH pairs, as trading volume recovered to some extent, hoping for a new bull run.
- Binance Coin-Margined Funding Rate: funding rates were mostly positive, as the confidence level of the market continued to improve.
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, 4 Apr 2022, Twitter: https://twitter.com/SerenityFund )