[Weekly] Market Return on StableCoin-based Strategies(4 July 2022)

  • Risk Free Rate: 0.52%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was lower as last week’s 0.62%. Last week , the market declined, with Bitcoin going down to below 20k level, and caused some market turbulence and fears. However, there’s no more bad news in the market; the decline last week was more of a matter of sentiments.
  • Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 4.4%, lower than last week’s 5.3%. This is in line with the dip in CRV and CVX prices. TVLs did not move much, except for that the higher yield of Iron Bank pool appealed to some investors and its TVL went up quite a lot.
  • Other Stablecoin Platforms: the yields vary from 1% ~ 16%, and averaged 8%, slightly lower than last week’s 9%. Abracadabra’s MIM pool (with incentives from Convex, as a result of bribes) leads this category this week. We have recently published a research paper on MIM to cover this protocol. TrueFi and Maple still did not have liquidity as loan repayments are slow and there’s no new liquidity, as the borrowers’ profiles are not public info for investors to make judgements. Maple’s first pool manager, Orthogonal Trading, issued a default notice to one of its borrowers, Babel Finance, and warned the lenders of 3–5% loss of the principal. Liquity continues to deliver decent yield and LUSD is still at a premium.
  • Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 2% to 16% now. EURO fiat and gold prices both declined marginally over last week, and this affected the prices of their crypto version as well. Overcollateralised stablecoins, MIM and MAI, are delivering higher yields in this period of time, as investors deem these are risky and demand a premium. Comparatively, pure USDC pools on EVM chains are making yields of 5% or less.
  • Uniswap/Alpha: Uniswap earnings were average last week as, for half stablecoin, half ETH pairs, as there’s no good news but there was no bad new neither.
  • Binance Coin-Margined Funding Rate: funding rates were still all negative, but similar to the week before, the funding rates for BTC and ETH were negative single digits, as market participants still prefer these to store value, or what is left of it, during this turbulent time.



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The Serenity Fund

The Serenity Fund

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