[Weekly] Market Return on StableCoin-based Strategies（12 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 12 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 12 September:

• Risk Free Rate: 0.58%. Risk free rate, representing the safe yields from Compound (USDC), Aave (USDC) and Curve (3-pool), was marginally lower than last week’s 0.66%. The market was generally quiet still last week and trading volume was generally low. This week ETH 2.0 merger is expected to take place and the market is cautious in anticipating what’s going to happen.
• Curve/Yearn/Convex: 3.5%. The Curve/Yearn Large-Cap Benchmark Rate is slightly lower than last week’s 3.6%. Compared to last week, TVLs of 3pool and sUSD declided more than 10%. Coupled with slight rebound of CRV and CVX prices, the average yield in this category was higher for most pools. Iron Bank pool’s yield further lowered, resulting in a slightly lowered overall yield.
• Other Stablecoin Platforms: the yields vary from 3% ~ 10%, and averaged 6.5%, lower than last week’s 6.8%. The overall yield of this category came down slightly, as the rewards token prices came down, probably as investors choose to hold ETH or major coins in line of the Merger. Abracadabra’s MIM pool on Convex came to top this week, with yield marginally above 10%.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 5% to 22% now. ibEUR continued to deliver good yields for its pairs with agEUR and sEUR, and remained a global top this week with over 20% yield. Optimism protocols remain as a good choice, as the OP incentives are still ongoing and some pools are offering reasonable yield. For example, sUSD-3CRV pool on Curve Optimism is offering 8% now.
• Uniswap V2: Uniswap earnings were low, for half stablecoin, half ETH pairs, in line with the market sentiment.
• Binance Coin-Margined Funding Rate: funding rates were a mix and positive and negative last week, with a wide range, i.e. UNI at positive 8% and ETH at negative 15%.

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, 12 September 2022, Twitter: https://twitter.com/SerenityFund )