A look at price risk-free yield strategies

Quick Take

  • In the crypto markets, both on centralized and decentralized markets, stablecoin yields are high compared to traditional markets. 
  • This is mainly due to a supply constraint for crypto dollars and a bull market — with BTC price up 374.9% in the past year.
  • Funding rate arbitrage has the highest yield in centralized markets. Yield farms related to the AMM protocol Curve have the highest return for decentralized ones.
Bitcoin’s price has continuously risen for the past six months. On October 1st, BTC was at ~$10,600 to over $51,000 today — a 380% increase. As a product of this run, the demand for stablecoin-denominated debt for leverage has increased appreciably. For stablecoins (or constructions of synthetic USD positions), the yields are extraordinarily high compared […]

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