[Weekly] Market Return on StableCoin-based Strategies（26 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 26 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 26 September:

• Risk Free Rate: 0.70%. Risk free rate, representing the safe yields from Compound (USDC), Aave (USDC) and Curve (3-pool), was marginally lower than last week’s 0.72%. There was further decline in terms of prices after Fed has expressed a strong stance over rate hikes, and this affected the market confidence for both crypto and non-crypto investments.
• Curve/Yearn/Convex: 2.4%. The Curve/Yearn Large-Cap Benchmark Rate is marginally lower than last week’s 2.5%, in line with the decline in reward token prices. Compared to last week, TVLs of 3pool rebounded significantly.
• Other Stablecoin Platforms: the yields vary from 3% ~ 11%, and averaged 6.3%, higher than last week’s 5.7%. Higher yield in uncollateralised lending pools such as Truefi and Maple pushed the yields higher. Some surprise from Gro Protocol (likely due to one-time fees) contributed to the higher average yield as well. The fundamentals remain unchanged and the yields are generally low, in line with the market sentiment.
• Other (non-USD stablecoin or non-Ethereum) platforms, aka Exotic Strategies: Exotic strategy yields’ are from 3% to 11% now. EUR and gold both had new lows due to a strong USD, and this had impact on quasi-stable products like xaut-3crv, which has a lower yield and also its principal value had shrunk. EVM protocols have improved returns, as the merger of Ethereum seems to be smooth and more activities are taking place now.
• Uniswap V2: Uniswap earnings were average, for half stablecoin, half ETH pairs, as the market calmed down despite pessimism still being the mood.
• Binance Coin-Margined Funding Rate: funding rates were a mix and positive and negative last week, with DeFi tokens taking some advantage, but the selling press on ETH remained.

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