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

• Risk Free Rate: 1.74%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was higher than last week’s 1.49%. This is due mainly to the rise of Compound and Aave lending rates.
• Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 4.4%, marginally lower than last week’s 4.5%. CRV and CVX prices continued to decline, so did many other platform tokens. There’s less confidence in the market now about DeFi protocols, as there’s little innovation, the fear of a sustained war and the looming concern of interest rate hike.
• Other Stablecoin Platforms: the yields vary from 5% ~ 17%, and averaged 10%, lower than last week’s 11%. Maple Finance’s Maven 11 vault topped this category this week; its yield is good but you have to lock the principal for 90 days. Fantom chain yields have dropped significantly over the weekend, due to the claimed exit by Andrew Cronje’s claimed exit from the space completely.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 5% to 106% now. Mirror Prorocol’s USO (oil) vault topped this category will over 100% APY, as MIR price increased substantially. We also observe that recently the yields of major protocols on other chains came down to the 10% level, making them comparable to medium-sized established platforms on Ethereum.
• Uniswap/Alpha: Uniswap earnings were average last week as well, for half stablecoin, half ETH pairs, as trade subdue and the market was on the watch. Gas fee was very low for the whole of last week.
• Binance Coin-Margined Funding Rate: funding rates were mostly single-digit positive, except for BNB, confirming our view that the market is cautious.

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, 7 Mar 2022, Twitter: https://twitter.com/SerenityFund)