[Weekly] Market Return on StableCoin-based Strategies (5 April 2021)

  • Curve and Yearn returns have stabilized this week, as CRV price was stable round $3, after the Ellipsis Finance hype has faded. The yields of Yearn vaults continued to come down, making smaller vaults like CRV-AAVE’s boost impact more significant.
  • Other stablecoin platforms are delivering about 30% on average, with Vesper being the highest, due to a strong VSP price. mStable has launched new products similar to the concept of Curve’s 3pool metapool, paring mUSD against other stablecoins. Currently there’re only BUSD and GUSD pairs with mUSD. As these are exchange backed stablecoins, we generally think they are reasonably safe. These vaults are offering 40% APY, before applying boost by locking MTA tokens.
  • Exotic (non-USD) strategies yields were around 80% to 100% now. This week’s top earning pool is Cover Protocol’s BOR insurance liquidity providing pool, with APY close to 200% for most of the time of the week.
  • Our traditional strategy of Uniswap Liquidity Providing and Hedging on Binance were still the safe choice, when the market was volatile. Uniswap’s ETH-USDT (hedged) yield was 44% last week. A higher funding rate over last week also boosted the yield. This affects Alpha Homora’s yield in a similar way, as Alpha Homora is a smart contract version of our Uniswap strategy (e.g. borrowing ETH and hedging). Alpha’s return is higher than Uniswap, due to its additional rewards of ALPHA tokens.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
The Serenity Fund

The Serenity Fund

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