CIP #11 - Single Asset Indexes with diversified yield bearing on Avalanche

Cook Improvement Proposal #11

CIP #: 11

Title: Single Asset Indexes with diversified yield bearing on Avalanche

Status: Proposed

Discussion link: https://gov.cook.finance/t/avalanche-single-asset-indexes/

Created: 1/18/2022

Executive Summary

To add three Single Asset Indexes with diversified yield bearing. The three assets should be USDT.e, USDC.e and AVAX.

Problem Statement

There are many yield farming vaults for USDT.e, USDC.e and AVAX on yield yak, however, the APY can vary quite a bit. Also single vaults have inherent single vault risk that could be mitigated by diversifying to additional yield bearing platforms.

Proposed Solution

Overview

Create a single asset with a diversified yield bearing for USDT.e USDC.e and AVAX. The index is composed by the same deposit token but put into multiple yield yak farming vaults.

Rationale

Making a single asset yield bearing index with diversified farming vault can stabilize the yield farming APY and mitigate single vault risk. In the meantime, the yield bearing single asset index makes it easy for investors to understand and use.

Specification

To request that the Cook core team implement three Single Asset Diversified Strategy Yield Bearing Index, which are USDT.e USDC.e and AVAX.

USDT.e index should be composed by yield yak Benqi strategy (70% allocation) and yield yak Banker Joe strategy (30%)

USDC.e index should be composed by yield yak Benqi strategy (30% allocation), yield yak Banker Joe strategy (30%), yield yak Aave strategy (30% allocation) and yield yak Blizz strategy (10%)

AVAX index should be composed by yield yak Benqi strategy (40% allocation), yield yak Aave strategy (40% allocation) , yield yak Blizz strategy (10%) and yield yak Banker Joe strategy (10%)

4 Likes

fully agree with this proposal, happy to see Single Asset Indexes with diversified yield bearing on Avalanche

4 Likes

“diversified farming vault can stabilize the yield farming APY and mitigate single vault risk” and we need it, I am, supporting this proposal

3 Likes

so happy that CIP 11 is being taken into consideration, let’s get it passed, fingers crossed.

2 Likes

Yes these yield bearing ones are going to be good

1 Like

Can’t wait to have more Avalanche indexes.

1 Like

Single Asset Indexes with diversified yield bearing on Avalanche will be an awesome concept due to the crypto market being highly volatile lately.
I will be glad if this concept is implemented as soon as possible.

1 Like