[Weekly] Market Return on StableCoin-based Strategies(6 Sept 2021)

  • Risk Free Rate: 4.22%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was comparable to last week’s 4.27%。
  • Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 18%, up from last week’s 13%.This was due mainly to a strong CRV and also market hype about CVX. Convex is still leading, which has been one or two months, and cvxCVR has maintained. The liquidity pool rewards of cvxCRV-CRV has higher yield than staking CRV with Convex Finance.
  • Other Stablecoin Platforms: the yields vary from 11% ~ 33%, and averaged 19%, same as last week. MIM topped this category this week; our return calculation was simply staking MIM in Curve and you can get higher yield if you go with Convex.
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: Exotic strategies are delivering 18% to 78% yield now. Mirror Protocol maintained its status on the top. Yield from Polygon’s native stablecoins stabilized and remained at 20% to 30% yield level. The penalty rate of 2.35% is the difference of Curve’s Aave Pool yield on Polygon over the same pool on Ethereum, went up from last week’s 0.58%. We tend to think a few percentage is the reasonable range of risk premium on Polygon vs on Ethereum.
  • Uniswap/Alpha: Uniswap earnings were very good, for half stablecoin, half ETH pairs. This is due to funding cost turned positive (giving a yield for short) and continued to go higher as market sentiment turned bullish.
  • Binance Coin-Margined Funding Rate: funding rates are positive, as market turned bullish.

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The Serenity Fund

The Serenity Fund

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