[Weekly] Market Return on StableCoin-based Strategies（7 November 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 November. 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 November:
- Risk Free Rate: 0.98%. Risk free rate, representing the safe yields from Compound (USDC), Aave (USDC) and Curve (3-pool), was higher than last week’s 0.90%. The rise in the rates was a result of higher interests from Aava and Compound.
- Curve/Yearn/Convex: 2.8%. The Curve/Yearn Large-Cap Benchmark Rate is slightly lower than last week’s 2.9%. There was a strong comeback of CRV and CVX over last week, pushing the yield higher, but the lending rates of Iron Bank were not as high as the week before, so lowering the yield. There was little movement in TVL in most pools.
- Other Stablecoin Platforms: the yields vary from 3% ~ 13%, and averaged 6.3%, lower than last week’s 7.1%. MIM pool in Convex topped this week, probably due to some MIM being burnt in the mid of the Alameda v.s. Binance saga. FTT, Alemada’s affiliated company FTX exchange’s platform token, is the largest collateral of MIM. To be cautious, we should avoid this pool for the time being. TrueFi and Maple continued to maintain higher yields.
- Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 2% to 14% now. EUR pools are still good and the EUR price seemed to stabilized after a drastic interest rate hike. EVM chains have moderate yields, except for Optimism.
- Uniswap V2: Uniswap earnings continued to be low, for half stablecoin, half ETH pairs. Trading volume was not large over the entire week.
- Binance Coin-Margined Funding Rate: funding rates were mostly positive except for BNB, similar to the week before.
- Research Report: we have a released a new report on Overview of Stablecoin Investment, summarising the status of stablecoin investments. If you are interested, please visit our website or Twitter for a FREE copy.
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 November 2022, Twitter: https://twitter.com/SerenityFund )