Colony will provide liquidity support to the protocol, paving the way for the amplification of its TVL and increased capacity for its strategy vaults. Colony Provides Liquidity Support to Steadefi

Introducing Steadefi – the cutting-edge automated yield strategy vault protocol that’s tailor-made for the Avalanche and Arbitrum ecosystems. Steadefi offers a powerful solution for yield seekers to boost their passive earnings through closed-loop undercollateralized leverage. With automated position and risk management, Steadefi ensures increased capital efficiency for its users. Experience complete transparency with our strategies. Our comprehensive Profit and Loss (PnL) metrics, clear charts, and detailed user guidance provide investors with all the information they need.

• Steadefi’s Offering:

Steadefi users can choose between two options: risk-off lending and risk-on yield seeking.

• For risk-off users, innovative (and isolated) lending pools present a straightforward path to consistent yields. By lending funds to the strategy vaults, users not only earn steady returns but also share in the profits generated by the borrowing vaults.
• On the risk-on side, users can opt for 3x leveraged delta-0 (“Neutral”) and 3x leveraged delta-1 (“Long”) vaults. These vaults incorporate automated yield compounding and rebalancing, allowing users to pursue higher yields while effectively managing risk.

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Depositing

DeltaPrime is Avalanche’s first trustless, undercollateralized borrowing platform, as well as a significant advance in web3. Like other trustless borrowing systems, you may deposit your assets in liquidity pools and lend them to borrowers. DeltaPrime members not required to deposit extra collateral. This maximizes capital efficiency for both depositors and borrowers.

The APY on depositing is dependent on how much of a pool is being used. $100K in the pool, with $80K borrowed has a higher interest rate than $100K in the pool with $40K borrowed.

The challenge

DeltaPrime’s flexible interest rate is a powerful tool for managing the utilization of the pool over the long term. However, at launch, it can also present a unique challenge. Let’s look at an example:

Investor A deposits the first $50K. With no borrowers, the interest rate stays at 0%. Investor B comes in and borrows $45K, and suddenly the interest rate jumps to 63%. Investor C deposits $30K, and the rate drops down again to 3%. As you can see, without sufficient liquidity in the pools, each interaction with the pool can hugely impact the interest rate. This makes it difficult for all parties to accurately predict returns and effectively manage risk.

This is why it’s so important to have a good amount of liquidity in the pool right from the start, on January 10th. This will assist stabilize the interest rate. What they need is a fren that has enough liquidity to stabilize the rate, and who is willing to provide this for a longer period of time, supporting a successful DeltaPrime launch.

Colony is connecting with the appropriate people to provide value throughout the chain. Colony Partnership with DeltaPrime after meaningful discussions. DeltaPrime’s launch liquidity will come from Colony. DeltaPrime will provide Colony $PRIME tokens as a bonus APR. Investors that stake $CLY will get these tokens as $PRIME.

For Prime account holders this partnership means that there will be borrowable liquidity in the pool, straight from launch; stabilizing interest rates for every user.

What changes

• Prime account holders can borrow and invest in larger quantities immediately at launch
• Interest rates will be stabilized, even for some of the larger pool actions
• $CLY stakers receive bonus $PRIME, for making this partnership possible
• The first $PRIME ends up in the community’s hands, exactly where it needs to be

DeltaPrime and Colony are currently exploring the possibility of safely integrating this token into the DeltaPrime ecosystem in a way that the asset would hold borrowing power.

About DeltaPrime

Providing secure undercollateralized loans, redistributing assets with a focus on maximum capital efficiency. Being built on the strong foundation of the Avalanche network, Prime users are ensured of fast and reliable transactions for their most important investments.

Website | Twitter

About Colony

Colony deploys capital within Avalanche on early stages projects, provides liquidity to DeFi protocols, validates networks through stacking capabilities and will maintain an Index on top Avalanche projects

Website | Twitter

SOURCE: https://medium.com/@Delta_Prime/colony-deltaprime-5a5f0840ccae

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CAI is the benchmark index for investors looking to get exposure to the Avalanche ecosystem. It is made up of the native token (AVAX) and the major apps in the industry. Degis protects CAI Price Protection, as the Avalanche’s native protection procedure.

Degis Price Protection model

Price Protection is Degis’ next-generation token price protection in this quickly changing crypto environment. Price Protection employs tokens to represent freely tradeable protections. Otherwise, the author of the protection token may recover the staked collateral.

In the protection time, users may choose to be a creator, buyer/seller, or provider depending on their knowledge and projection of the token price. Creators may stake stablecoin to mint protection tokens and keep or sell them in AMM. Providers may deposit token pairings into the swap pool and mine and harvest LP tokens.

How to use Price Protection?

Suppose CAI protection will be available on September 28th.

Using their default time period, the protection will expire on Oct 15th, 2022.

Basic Information:

Type: CAI Protection

Trigger Price: $90 (assume)

Expiry Date: 2022–10–15

Think about it…

If you spend $900 buying 10 CAI at the price of $90 and use it to provide liquidity.

If the price on 2022–10–15 is higher than the original price ($90), you can earn from both price benefit and LP mining rewards, which is the best situation.

But what if the price of CAI is lower than $90 on that day? You may not necessarily make money from this operation…

Time period of Price Protection

There are 3 periods in one batch of the Price Protection. The first day is the deposit period when protection tokens are minted by the deposition of stablecoins, and the initial price of the protection token will be settled at the end. Then during the trading period, there are 14 days for users to conduct a series of actions (like create/redeem protection tokens, buy/sell protection tokens in the swap pool, provide/withdraw liquidity, etc.), users can also harvest juicy mining rewards in this period. The last 3 days before the expiry date is called the locking period, in which only liquidity providers can provide/withdraw their position in liquidity pools.

About Degis:

The next-generation all-in-one protection protocol, the first on Avalanche. They offer exhaustive protection to users and traders, offer a decentralized protection market and will ultimately bring scalable risk management to the crypto world.  etc.

Website | Twitter

About Colony

Colony deploys capital within Avalanche on early stages projects, provides liquidity to DeFi protocols, validates networks through stacking capabilities and will maintain an Index on top Avalanche projects

Website | Twitter

SOURCE:

https://degis.medium.com/degis-will-protect-cai-in-price-protection-e687c9dc3a6d

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Moremoney offers consumers attractive returns on accounts via third-party execution platforms like as Platypus Finance, BENQI, AAVE, and Yield Yak. Users may change the technique utilized on their underlying funds if a better option arises.

Moremoney’s vision is to help expand the Avalanche lending landscape, letting users borrow a first of its kind yield bearing stablecoin (MONEY), while earning a sustainable yield on their collateral.

Together, CAI and Moremoney bring some of Avalanche’s most innovative lending solutions

How it will work?

The integration of CAI/AVAX LP onto the Moremoney protocol helps enhance the index’s utility, allowing investors to deposit their LP, borrow against it and leverage.

As a result of this integration, CAI investors will be able to unlock liquidity, borrow at sound collateral ratios while continuing to earn competitive yield returns.

About Moremoney

Moremoney is a decentralized borrowing platform native to Avalanche. Users can deposit tokens on the platform and borrow the MONEY Stablecoin.

Website |Twitter

About Colony

Colony is a community-driven accelerator that will eventually become an inclusive DAO to support the expansion of the Avalanche ecosystem. powered by the $CLY governance token.

Website |Twitter

About Phuture

Phuture (PHTR) is a decentralised protocol that allows users to gain passive exposure to crypto assets. With leading index products built on Ethereum and Avalanche, Phuture is at the forefront of innovation in crypto passive investing. Phuture has a global team and community to support and grow its mission.

Website | Twitter

SOURCE:

https://medium.com/cai-colony-avalanche-ecosystem-index/cai-announces-partnership-with-moremoney-to-enable-leverage-f244e881ab7

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The index is rebalanced periodically, and its tokens and weights are determined using a strict approach. Colony Avalanche Index Methodology Explained

CAI’s methodology comprises of three key sections:

• Token inclusion criteria
  a. Project and token characteristics
  b. Token supply requirements
  c. Liquidity requirements
  d. Security requirements
• Defining asset weights
• Index maintenance

Every project’s token should have a data feed that they can access through CoinGecko and should have at least 6 months worth of pricing data. They stipulate a minimum of 6 months to ensure that the project has had sufficient time in the market.

• The project should have a token that is native to Avalanche. This excludes wrapped variants, where the underlying tokens are locked on an alt-L1.

CAI tokens should use the Avalanche network. This removes any vulnerabilities associated with ass et bridges between layer 1 blockchains.

CAI will only invest into projects that are building positive sum applications for the Avalanche ecosystem whether that is in DeFi, GameFi or another category.

• The project’s token must not have the ability to pause token transfers.

The CAI tokens shouldn’t be able to delay token transfers, since this would prevent minting, redeeming, and rebalancing. Investors must always have access to index money.

CAI’s innovative design generates return on underlying tokens via Yield Yak, mitigating passive token dilution. Yield Yak is now generating 5% of CAI’s AVAX reserve.

They prioritize liquidity above everything else, hence we never engage in lockup-based staking programs. CAI never invests in yield-bearing vaults with temporary losses, entry/exit fees, or hazardous leverage to preserve investor returns.

Liquidity requirements

• The token must be listed on a supported exchange.
• The token should have in aggregate at least $2mm of on-chain liquidity across Trader Joe and Pangolin.
• The token must have shown consistent DeFi liquidity on Avalanche

CAI can access liquidity across every major exchange on Avalanche ensuring the best possible execution and support for even the largest investment sizes.

Security requirements

• The project must have had smart contract security audits with published reports.. Alternatively, the protocol must have been operating long enough to create a consensus about its safety in the decentralised finance community.

Conclusion:

CAI’s objective is to give investors regularly managed, diversified exposure to the growth of the Avalanche ecosystem. The methodology has been put in place to protect the capital held by the index, reduce the costs of entering and exiting the index and ensuring the index is always allocating capital to the best projects the Avalanche ecosystem has to offer. If you are looking to get exposure to the Avalanche ecosystem in a responsible, well balanced manner then head over to either Phuture or Colony’s app now.

About Colony

Colony deploys capital within Avalanche on early stages projects, provides liquidity to DeFi protocols, validates networks through stacking capabilities and will maintain an Index on top Avalanche projects

Website | Twitter

SOURCE

https://medium.com/cai-colony-avalanche-ecosystem-index/cai-methodology-explained-9d0e90ce2710

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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.

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