[Weekly] Market Return on StableCoin-based Strategies（5 September 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 5 September. 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 September:
- Risk Free Rate: 0.66%. Risk free rate, representing the safe yields from Compound (USDC), Aave (USDC) and Curve (3-pool), was marginally lower than last week’s 0.68%. Last week, the market was quiet and prices went up slightly overall.
- Curve/Yearn/Convex: 3.6%. The Curve/Yearn Large-Cap Benchmark Rate is slightly lower than last week’s 3.8%. This was the result of lower yield from Iron Bank pool, therefore reducing the average yield. The yield from other pools generally improved due to a better CRV and CVX prices.
- Other Stablecoin Platforms: the yields vary from 3% ~ 12%, and averaged 6.8%, lower than last week’s 7.0%. TrueFi’s USDC Pool continued to top this week. There’s little to comment on this week, as the market is quiet. Gas price was as low as 1 gwei during some hours over last weekend. It seems that the market is patiently waiting for a fe major events this month, one of most important ones being the Merger. Fed’s rate hike anticipation also has a bearing in the market sentiments.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 3% to 16% now. ibEUR continued to deliver good yields for its pairs with agEUR and sEUR, and remained a global top this week. Gold and EUR prices remained weak, due to a bleak economic forecast globally. EVM chain protocols have not outperformed Ethereum in terms of yield for a long time.
- Uniswap/Alpha: Uniswap earnings remained average, for half stablecoin, half ETH pairs, in line with the market sentiment. Patience is important this month.
- Binance Coin-Margined Funding Rate: funding rates were all negative except for UNI, as its price came back over 10% last week.
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, 5 September 2022, Twitter: https://twitter.com/SerenityFund )