[Weekly] Market Return on StableCoin-based Strategies（13 Dec 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 13 Dec. 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 13 Dec:

• Risk Free Rate: 2.98%. Risk free rate, representing the safe yield from Compound, Aave and Curve, was lower than last week’s 3.29%. Market was turbulent over the last week and it affected the risk appetite in general. A selling price on the tokens marginally affected the rate as well.
• Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 11%, marginally higer last week’s 10%, as the market was still in fear a major correction. The price of CVX played an important role on this.
• Other Stablecoin Platforms: the yields vary from 6% ~ 28%, and averaged 14%, same as last week’s 14%. Frax Finance’s liquidity pool on Uniswap V3 (FRAX/DAI) continued to lead this category. Old platforms like mStable and Fei became better choices as newer platforms have declining prices of their tokens, affecting mining yields.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategies are delivering 9% to 39% yield now. Mirror Protocol came back to top this week, with MIR price recovering steadily.
• Uniswap/Alpha: Uniswap earnings were week last week, for half stablecoin, half ETH pairs. This is expected in a shaky market.
• Binance Coin-Margined Funding Rate: funding rates were low, and BNB was negative in the down market.

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, 13 Dec 2021, Twitter: https://twitter.com/SerenityFund)