[Serenity] Weekly Stablecoin Alpha - 10 Nov 2023

Our weekly now covers the alpha in the stablecoin industry and an overview of the investment yields in the industry. For details on how to read the Stablecoin Yield Overview, please refer to this article.

Featured High Yield Pools

Selection criteria: TVL over 50k

• Aerodrome DOLA-USDbC

  • 44% and $7.0m

  • DOLA by Inverse Protocol continues to do well on Aerodrome, and with the surge in $AERO prices, the yield is now 44%.

    

• Aura R-sDAI

  • Aura Finance, the booster for Balancer, has not been in our attention for a while due to a weak BAL. This pool has 20% yield and contains sDAI by MakerDAO/Spark and R Stablecoin by Raft, a LSDFi protocol.

    

• Silo USDC Silos on Arbitrum

  • STIP by Arbitrum has begun! Silo Finance has received STIP from Arbitrum DAO and now distributes to its borrowers and lenders of various silos. The yield is not 13% to 17% for over $1m silos, but you can loop a bit to enhance the yield, e.g. Borrowing ETH for ARB silo to deposit into wstETH silo.

    

Stablecoin Yield Overview

For the definition details of each category, please refer to our article.

In-Depth Thread or Article Summary

• Aave Emergence Freeze of Stablecoins

  • Aave has frozen its stablecoins pools due to a bug on stable borrowing rate discovered by white-hats. The protocol is undergoing some governance vote and will resume in a few days time.

    

    

• Europe Regulators Passed Preliminary Deal on Allowing Non-Bank Firms Accessing SEPA

  • The EU institutions have reached a provisional deal on instant payments during yesterday's trilogue negotiation. As part of this deal, non-bank payment institutions (e.g. e-money institutions, including future regulated stablecoin issuers aka e-money token issuers) will be granted direct access to central bank payment systems (e.g. SEPA). Circle CEO Jeremy noted that this is positive for stablecoin issuers.

    

• Bank of English Established Framework for Use of Stablecoins for Payments

  • The Bank of England (BOE), in collaboration with the Financial Conduct Authority (FCA), has unveiled a framework for overseeing the stablecoin cryptocurrency market within the United Kingdom.

    

Serenity Team

10 Nov 2023

Disclaimer

The information provided on this document and the referenced sources do not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the content as such. The author of the document makes no representation or warranty as to the accuracy and or timelines of the information contained herein. A qualified professional should be consulted before making any financial decisions.