Yield Yak Treasury Update

Published on: 08.11.2021

When they first launched the YieldYak $YAK token they outlined their strategy tocreate an opinionated treasury which takes a generally bullish stance on the Avalanche ecosystem. Today’s update touches on how it is performing and provides some insights into the treasury’s future direction. Treasury assets are spread across multiple wallets, which anyone can track.

Being bullish on the Avalanche ecosystem has been good. The treasury is in a healthy and thriving position. The funds will be used mainly to support Yield Yak’s growth in the coming months and ensuring a healthy treasury through any market conditions.

Treasury currently valued at $13M.
Protocol TVL is over $450M. YAK fully diluted market cap is under $60M.
Treasury owns 1,890 YAK, which accounts for ~80% of treasury.
Plans include continued support of native ecosystem projects and investing in full time team for Yield Yak

Treasury has paid for ongoing audit by CoinFabrik

Using the Yak Treasury to Support Native Avalanche Projects

YY’s position in the ecosystem has given the team and contributors the privilege of supporting fellow native Avalanche Ecosystem projects with early investment, advice, support and partnerships. The treasury has been investing, supporting, and partnering with new projects in various stages over the past months. In some cases the Yak Treasury has accepted the opportunity to invest in early-stage projects. In these cases, Yak Treasury follows on with liquidity provision and other useful activities.

Here’s a quick summary of early-stage investments below; these assets will in due course be transferred to treasury accounts as they unlock and/or vest.

785,714 $OH Oh! Finance tokens
250,000 $JOE Trader Joe tokens
166,667 $CLY Colony Lab, token has not yet launched
250,000 Platypus tokens, token has not yet launchedThis equates to an ~$900K in assets not visible in on-chain treasury wallets.

Using the Yak Treasury to Support Yield Yak’s Growth

The Yield Yak community have shown a desire for adding full-time roles to the team, which the treasury intends to support. The treasury committee will support Yield Yak’s growth, including adding full-time team members and other significant costs like ongoing audits.

The treasury committee also recently contributed 50M mYAK as part of the #YakRush: Banker Joe promotion which was successful in attracting $225M deposited into Yield Yak Banker Joe lending strategies between October 13 and October 27. This promotion has had a clearly positive impact on TVL…

Yield Yak TVL, Before Yak Rush (Defi Llama)

Looking Ahead

While the Treasury is as healthy as it’s ever been, they should also manage risk. The treasury intends to increase its proportion of assets in stablecoins using future revenues. This action is intended to support Yield Yak’s growth should market conditions change, even over an extended period of time.

Finally, the idle $YAK assets should be put to work. Expect upcoming announcements on how the committee plans to activate these holdings to help build Yield Yak’s bright future.

Dylan — Yield Yak Comms — on behalf of Treasury Committee