[Weekly] Market Return on StableCoin-based Strategies (7 June 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 7 June. 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 7 June:

  • Overview: Market has stabilized and inched up a bit from the 5.19 shock. So yields have picked up, but only for large platforms. Small projects are still struggling. Selling pressures on platform tokens are high, and we believe we are in a stage when “buying yield” should be the main theme.
  • Curve/Yearn: The Curve/Yearn Large-Cap Benchmark Rate is now 16%, vs 13% last week, as CRV rose a fair bit. Convex has tripled its TVL (please see our coverage of Convex in an earlier article) and the yields came down marginally.
  • Other Stablecoin Platforms: the yields vary from 9% ~ 52%, and averaged 25%, comparable to last week. Washbi Finance and Truefi are delivering good yields. We will be replacing some platforms with newer ones like Alchemix (see our article) or platforms on Polygon (please refer to our overview article on Polygon yield farming here).
  • Other (non-USD stablecoin) platforms, aka Exotic Strategies: Mirror Protocol are coming back slowly, and made top pool of the week in our list. Yields from Ruler are pretty average now.
  • Uniswap/Alpha: Uniswap earnings were moderate last week. Leveraged Alpha Homora, the yield on USDC-ETH pair is now 50%.
  • Compound Leveraged Yield: at 70% leverage, the total return from this strategy is about 10% to 20% last week. Note that this strategy can also be used to hedge USDT exposure.
  • Binance Coin-Margined Funding Rate: refunding rates generally stabilized to be around 0.01% per 8 hours, as the market was quiet last week. Gas prices were also low, almost reaching single digit recently.

(Serenity Team, 7 June 2021, Twitter: https://twitter.com/SerenityFund)