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

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 5 July. 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 5 July:

  • Risk Free Rate: 3.27%. We have introduced a conceptual risk free rate for De-Fi, for benchmarking purpose. For the calculation, please refer to this article. Generally, the market was stable last week, and the yields remained stable.
  • Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 11%, same as 11% last week. Convex is still leading.
  • Other Stablecoin Platforms: the yields vary from 9% ~ 27%, and averaged 15%, same as last week. Washbi Finance still topped this category.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 20% to 40% plus yield now, with Mirror’s iAU-UST pool topping this category and also globally. The penalty rate of 7.38% is the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum.
  • Uniswap/Alpha: Uniswap earnings were moderate last week at the rate of 20%, for half stablecoin, half ETH pairs. ETH-WBTC pair was negative due to funding cost.
  • Compound Leveraged Yield: at 70% leverage, the total return from this strategy is about 10% plus last week. Note that this strategy can also be used to hedge USDT exposure.
  • Binance Coin-Margined Funding Rate: refunding rates varied across coins are mostly negative, as the market sentiment was low.

(Serenity Team, 5 July 2021, Twitter: https://twitter.com/SerenityFund)