CAI Partnership with Yield Yak to Boost Yields

CAI Partnership with Yield Yak to Boost Yields, Colony and Phuture are excited to announce an official collaboration with Yield Yak.

To increase yields on CAI, the Colony Avalanche Index, Yield Yak has long been a top autocompounder on Avalanche and a crucial supporter of DeFi inside the ecosystem. Naturally, they sought to increase the rewards their consumers could access while investing in the index by integrating Yield Yak’s yield-generating protocol into our future product CAI

How will CAI utilize Yield Yak?

 CAI minimizes that by depositing a portion of each asset into yield bearing vaults on Yield Yak.

As investors mint and burn CAI, it changes the quantity of assets held by the index, so CAI will periodically refresh the balances it holds on Yield Yak to ensure it is adhering to its target percentage.

Having funds available outside of Yield Yak allows CAI to easily support redemptions and rebalancing without withdrawing from Yield Yak. This improves gas costs for users and ensures CAI maintains a consistent APR on the assets it manages.

The yield bearing vaults that CAI will utilize must adhere to several key standards:

• Temporary loss doesn’t affect returns.
• The protocol that is used to generate yield must pass our security check.
• Leverage must be low risk by lending and borrowing the same asset.
• Funds held by the vault must always be redeemable without lockups.

Once a vault has passed all the above criteria, it becomes whitelisted for use on CAI. At launch, each asset will support exactly one Yield Yak vault, but in the future they intend to support multiple vaults for each asset to diversify CAI’s exposure to any one vault

About Yieldyak

Yield Yak makes numbers go up. Ape into new autocompounder farms with quick releases and high yields. Swap on Yak for the best prices on trades with zero aggregator fees. Sit back and just earn, including big APYs on stablecoin farms.