Sahar Cake 🍰

Building vaults on @yieldyak_

[Sahar Cake 🍰 @Block_Cake]

New milestone for aiAVAX 🔺

259,000 WAVAX deposited, earning 9.5% APY (net of fees) over the past year.

Powered by @yieldyak_ 🐃

[Yield Yak 🐃 🥛 @yieldyak_]

A proposal has been put forward by Core Contributor @ravageur77 which, if approved, would lead to an orderly sunset of the Yield Yak protocol later this year. Below is the full proposal for transparency.

Protocol operations continue as per usual during this process.
__________________

Proposal for an Orderly Sunset of Yield Yak

TL;DR

- We propose an orderly sunset of the Yield Yak protocol. If agreed on, the Treasury (minus winddown costs) will be dispersed to YAK holders.  Claim #1 would  begin in early November,  followed by a second and final claim in December.

- All Vaults and Farms would move to withdrawal only by November.  Vaults will be maintained and remain yield-bearing until December, after which deposits in underlying Vaults (aiAVAX, aiUSD, aiBTC, etc.) will no longer earn yield.

- Yield Yak’s front-end will be supported until at least Q2 2027, after which any withdrawals would need to be made via Block Explorer

- The Treasury is currently valued at ~$290,000 USD that will remain yield-bearing until the claim period.  The Treasury is currently in a mix of USDC and AVAX, but would be consolidated into AVAX prior to the claim.  YAK holders would burn YAK to receive AVAX during the treasury distribution.

- The Treasury has pulled all of its liquidity for YAK liquidity ahead of this proposal.

REASONING

Launched in the defi summer of 2021, Yield Yak has had an incredible run as one the longest running community-rooted defi protocols on Avalanche. The protocol survived multiple bear markets, and experienced incredible highs, notably YAK being the most valuable airdrop in Avalanche’s history, and reaching $750 Million in Deposits back in late ‘21.  Yak Swap, our 100% free swap aggregator, has turned over billions in swap volume. And for the majority of the protocol's existence, Yield Yak has returned 100% of fees to YAK holders.   However, the protocol has struggled to grow in the past 18 months, notably:

- Chain expansion proved difficult to acquire new users and ultimately unsuccessful

- We failed to convince Avalanche institutional partners (DATs, among others) or the Foundation to support Yield Yak's flagship vaults (notably aiAVAX, despite its position as the highest yield AVAX vault in the ecosystem).  Our fee generation has relied on organic support from the community.

- The regulatory outlook for curated vaults isn’t promising, putting smaller protocols like ours in a potentially increasingly vulnerable position from a risk POV.

- $YAK holders currently receive 30% of revenue.  It has been considered to move this to 0% and 100% to Treasury to bridge the gap between burn & revenue, but this felt unfair to YAK holders with no clear growth drivers in the pipeline.

Ultimately, it feels like the right time to sunset the protocol and also in the best interest of YAK holders as opposed to a slow drain of the Treasury.

SPECIFICS

Treasury

- Burn is currently $9.5K/month, but this is after already making reductions in recent months to bridge the gap with revenue.

- Treasury revenue sits at approx. ~$5K/month

- Treasury is currently made up of 3 assets: $AVAX (in aiAVAX),  $USDC (in aiUSD), and a Pharaoh xPHAR position which stems from an original investment Contributors made back in 2023. What is proposed is that the AVAX and USDC will be consolidated into AVAX, which would be currently valued at ~$290K. The xPHAR position will be transferred to the remaining Team Operations / Contributors to compensate for winddown costs.  In this way the Treasury dispersion can be simplified into one single token, without needing to liquidate and burn half of the value of the xPHAR position. 

Timeline should this proposal go forward.

Late October:

- Deposits are disabled on all Vaults and Farms

- Revenue configured to go 100% to Treasury (so they can be collected to distribute to YAK holders in Claim #2; see below)

Early November:

Claim #1 goes live.  This claim will be calculated as “Current Treasury Assets divided by YAK in distribution minus certain specific wallets (including the Treasury).  The Claim will be live for 30 days from the point of creation.  Any unclaimed assets will be distributed in Claim #2 to users who partook in Claim #1.

Early December:

- Remaining Contributor salaries are halted

- Vaults deposits will stop earning users yield

- Claim #2  goes live. This claim will be for unclaimed assets from Claim #1 + Revenue earned by the Treasury during Claim 1. Eligible wallets for Claim #2 will be wallets who participate in Claim #1.

Not before Q2 2027: Yield Yak front-end may no longer be supported, in which case withdrawals would need be made via Block explorer

aiBTC Stream Finance Impacted Users: 
Contributors will facilitate any aiBTC compensation from the Stream Finance incident should a resolution come to pass in the future.

Next Steps
Community questions & discussion, followed by a DAO vote on Snapshot
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[Yield Yak 🐃 🥛 @yieldyak_]

Our flagship aiAVAX vault has been opportunistically grabbing cheap $sAVAX off the market this past week….which means the carry trade has been ripping…which means depositors earned 14% in the last 7 days. 🫡

[Yield Yak 🐃 🥛 @yieldyak_]

sAVAX rate update just dropped which means it's a good time to check-in on aiAVAX performance.

Last 7 days: 9.66%
Last 90 days 10.6%

Still the best single-asset avalanche-2:native vault out there 🫡

[BSCN @BSCNews]

Want to make money in the Avalanche ecosystem...?

@ElanInsights has you covered with its pro-level Income dashboard.

Sign up now: https://t.co/VvfLR5T1nU

Several major yield opportunities currently exist within the @Avax ecosystem.

@yieldyak_ is by far the winner, offering 36.48% APY on its agent-managed aiAVAX vault.

But @PharaohExchange comes in at a strong second with 16.52% APY on its BTC.B / WAVAX pool.

Both pools have TVLs of more than $1 million.

[Sahar Cake 🍰 @Block_Cake]

@yieldyak_ @aave @BenqiFinance @PharaohExchange @BlackholeDEX 🔥🔥🔥

[Yield Yak 🐃 🥛 @yieldyak_]

aiAVAX new ATH with 259,000 $AVAX deposited 👏

All being optimised while supporting DeFi across the ecosystem via lending on @aave V3 & V4, @BenqiFinance, concentrated liquidity on @PharaohExchange and @BlackholeDEX, and executing the $sAVAX carry trade when profitable 💪

[Yield Yak 🐃 🥛 @yieldyak_]

aiAVAX approaching its $AVAX ATHs 🔺

[Sahar Cake 🍰 @Block_Cake]

New for aiUSD: @aave V4 on Avalanche, deployed across both the Main and Forex spokes.

That's alongside Aave V3, @SiloFinance, @sparkfinance and @BenqiFinance, all routed from a single deposit on @yieldyak_

[Cam 🔺️ @CryptoCam22]

🐃 Yield Yak Monthly Recap #31 🐃

🧵 Catch up on @yieldyak_’s July 👇

🔺 yiUSD went live on @base

🔺 yiUSD picked up momentum, with new integrations added along the way

🔺 aiAVAX kept cooking through the sAVAX carry trade, with 7D APY hitting as high as 46%

🔺 aiAVAX added @aave V4 on @avax, making one of the top $AVAX vaults even stronger

🔺 And plenty more 👀

[Sahar Cake 🍰 @Block_Cake]

@0x_Ali3N @yieldyak_ 🔥🔥🔥

[RebornAli3N 🔺 @0x_Ali3N]

🔺 Staked $aiAVAX on @yieldyak_ has surpassed 210,000, the higest amount since February

[Sahar Cake 🍰 @Block_Cake]

yiUSD vault just added the Clearstar-curated USDC vault on Morpho to its list of strategies.

The @yieldyak_ Base USDC vault now uses three different @Morpho vaults, curated by @ClearstarLabs, @SteakhouseFi and @gauntlet_xyz

[Yield Yak 🐃 🥛 @yieldyak_]

.@blockaid_ can you please address and fix the false positive which incorrectly flags Yield Yak (https://t.co/zFxhhKKRZh) as malicious for the wallets you provide your services to including @MetaMask ?

We have been reaching out to your support team with no success. Thank you!

[Cam 🔺️ @CryptoCam22]

I’ve watched @yieldyak_ continue building through both bull and bear markets on Avalanche, and it keeps evolving.

Its intelligent vaults are already managed by an AI agent across AVAX, stablecoin and BTC strategies, with aiAVAX currently standing out.

In an ai agent world, the intelligent vault agent could work alongside other agents, giving them a yield layer for keeping idle capital productive.

With multichain reach, real revenue and only 10,000 YAK, I think the long term potential is massive.

[Sahar Cake 🍰 @Block_Cake]

yiUSD, the newest @yieldyak_ stablecoin vault on @base, has added @ArcadiaFi USDC lending to its list of strategies 🔥

[Yield Yak 🐃 🥛 @yieldyak_]

🟦 Yield Yak's flagship @base $USDC vault is now up to 6.4% APY, all generated from balancing deposits across leading protocols @Morpho, @0xfluid. and @yield 💪

[Ravageur @ravageur77]

In just a week the @yieldyak_ @base vault already heading towards being one of top-performing USDC vaults on the chain. Hat tip to the team @Block_Cake @DevNative @real_yakman who have been in the trenches every day vetting & researching the best opportunities.

[Yield Yak 🐃 🥛 @yieldyak_]

aiAVAX continues it's incredible run of late thanks to some attractive sAVAX discounts with the Carry Trade leading the way.

Vault has delivered a 46% APY to depositors in the last 7 days 🔥.

[Sahar Cake 🍰 @Block_Cake]

yiUSD update: 6.8% APY over the past 7 days on USD Ecosystem Vault, powered by @yieldyak_

Diversified across @0xfluid , @Morpho, @sparkfinance, @aave and @yield — blue-chip lending only, no leverage, no exotic collateral.

One deposit, the vault does the rest 🥛