[Weekly] Market Return on StableCoin-based Strategies(14 Feb 2022)

The Serenity Research
3 min readFeb 14, 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 14 Feb. 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 14 Feb:

  • Risk Free Rate: 1.69%. Risk free rate, representing the safe yield from Compound, Aave and Curve, fruther declined from last week’s 1.99%. Generally, the market turned south again and triggered fear of a bearish market. More funds are seeking safe harbor in stablecons.
  • Curve/Yearn/Convex: The Curve/Yearn Large-Cap Benchmark Rate is now 6%, lower than last week’s 7%. This is mainly due to the decline in the prices of CRV and CVX mainly, as the market was declining in general. Curve’s 3Pool earning have remained at sub 1% level for a very long period of time, reflecting a strong demand for stablecoins (3CRV is indirectly bought to pair with other stablecoins in Curve).
  • Other Stablecoin Platforms: the yields vary from 5% ~ 19%, and averaged 12%, lower than last week’s 13%. Frax’s pool came to top, as the implementation of vdFXS is coming close and it is positive on the price of FXS. The yield range of this category continued to converge, as funds seeking the same level of risks reach a more equilibrium state.
  • Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from negative to 27% now. Mirror Prorocol’s SLV product conitnued to top; and it’s rather a matter of other platforms are not delivering very high yields. We still think Terra’s stablecoin UST is of higher risks compared to over-collateralised stablecoins and would demand a higher premium for holding UST-denominated products like those in Mirror Protocol. TraderJoe’s USDC-USDC.e pool has 5% plus yield now, but is negative after taking into account the cross-chain penalty. Our cross-chain penalty is calculated as the yield difference between Curve’s AAVE pool on Ethereum and on Avalanche.
  • Uniswap/Alpha: Uniswap earnings were weak last week as well, for half stablecoin, half ETH pairs, as trading volume was not high despite a rising market. This is also reflected by a low level of gas fees.
  • Binance Coin-Margined Funding Rate: funding rates were a mix of positive and negative last week, due to a mixed sentiments of future market directions.

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, 14 Feb 2022, Twitter: https://twitter.com/SerenityFund)



The Serenity Research

Zero market risk and stable return - risk neutralised cryptocurrency fund.

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