Yield Yak is one of the most famous and hyped projects in the AvalancheRush program. Here is everything you need to know about the decentralized finance (DeFi) platform.
Table of Contents
What is Yield Yak?
Yield Yak is a simple tool for increasing yield from DeFi farming on the Avalanche network. Yield Yak is a community-driven initiative. Its community has created and maintained the market’s best, most affordable, and most diversified auto-compounder.
Yield Yak is generally self-sufficient. Its community aids development by compounding incentives, proposing new techniques, and recommending crucial configuration improvements. Yield Yak farms may function continuously without the intervention of a team.
How does Yield Yak function?
Yield farm rewards are auto-compounded on the Yield Yak platform.
- Each farm is a collection of deposits made by Yield Yak users.
- Farms receive reward tokens (such as $PNG).
- Farms reinvest all profits, thereby increasing everyone’s contributions.
The extremely high frequency of Yield Yak compounding benefits all depositors.
Yield Yak works with Farming Aggregator and DEX Aggregator to connect and provide liquidity for the whole ecosystem:
- DEX Aggregator: Assists users in finding the fairest price while swapping. Prices are organized rationally from top to bottom.
- Yield Aggregator: an automatic function of Yield Yak that maximizes profits while supplying liquidity, i.e., Yield Yak lets farmers earn more profit by initial pooling assets, and the rewards earners gain re-supply liquidity. It’s similar to compound interest in that everything happens automatically.
- The Yield Aggregator function. It connects to the ecosystem’s pools of AMM exchanges and then returns to Yield Yak, diversifying liquidity pairings.
Yield Yak’s strategy is also smart; if more projects in the Avalanche ecosystem expand and more projects in collaboration with Yield Yak grow, the project will grow exponentially.
Furthermore, Yield Yak allows users to trade tokens, offering lucrative incentives. The reward, in this case, is AVAX, not Yield Yak token (YAK), as this will not enhance the supply of decent price support for YAK.
The YAK Token
According to Yield Yak’s whitepaper, the initiative established its cryptocurrency; the YAK token is expected to fund the whole yield mechanism of the project. The YAK is the project’s native utility token, and it is used for the following:
- Investing in the protocol;
- Rewarding participants within the project; and
- Making money for the project;
These project utilities support the creation of a solid operational framework, indicating that the project is self-sufficient. The community provides rewards while presenting new tactics, providing crucial configuration changes, and contributing to growth.
Currently, YAK has a total of 10,000,000,000 tokens in supply.
Token Use Case
The Yield Yak project’s Token is YAK, and it has the following Utility:
Governance: You may participate in platform governance by Staking YAK.
Native Income: Stake YAK to receive a portion of the platform’s revenue.
Sustainable Incentives: Forms of reward will use the platform’s earnings to purchase back YAK rather than Mint adding tokens.
Save time and increase your yield
Many Defi systems reward users with tokens (farming rewards). Farmers that claim their incentives frequently and compound their deposits increase their farming yield and rewards. However, most farmers fail to achieve optimal returns for two reasons:
· Prohibitive gas costs while compounding and claiming farming rewards
· High time commitment when compounding frequently
Yield Yak increases yield for all farmers by pooling assets and sharing compounding expenses. This implies more frequent compounding, which occurs automatically.
How do I start using Yield Yak?
Before you begin using Yield Yak, you will require the following:
- AVAX in your MetaMask account on the Avalanche C-Chain subnet
Can I go bankrupt?
Yes, Yield Yak should only be used with money you can afford to risk. Conduct your research if you invest in any crypto-related platform.
Yield Yak smart contracts have not been audited. Yield Yak is reliant on unaudited smart contracts from other platforms. Users of Yield Yak will be affected if the other platforms lose money.
Reduce the Variation in Reward Asset Prices
Most of the Popular Yield Yak farms multiply every few minutes or hours. Reward tokens are swapped for deposit tokens on behalf of all pool participants multiple times daily. This gives users a blended price exposure to reward assets.
Consider the following example: A farmer invests $50 in LP tokens on a farm. Each day, the farmer receives a prize of 0.05 AVAX. That means that by waiting for days or weeks, the farmer only creates enough value from claimed prizes to cover petrol expenses.
During this period, as the farmer waits for the rewards to be worth compounding and claiming, they face the risk of shifting reward asset prices.
Farmers who adopt Yield Yak instead will earn the average price for incentives throughout the term while their deposits continue to compound.
Why Invest In Yield Yak?
Yield Yak is one of the top ten largest TVL platforms in the Avalanche ecosystem.
As a result, Yield Yak will have the edge over competing platforms regarding users. This is great news because when an ecosystem grows, the capital flow tends to move to the top platforms first, with much liquidity pouring into Yield Yak (if the current position is maintained).
Another aspect of Yield Yak is that the platform’s Pool Farming is aggregated from practically all other projects on the AVAX system. As a result, Yield Yak has the benefit of having a vast quantity of TVL and an extremely diverse Pool Farming liquidity source in the Yield Aggregator array on AVAX.
Fees are paid from reward tokens each time a farm is compounded.
The fee is typically between 5 and 10% of the incentive tokens. The fee is flexible and alters in response to network conditions to maximize benefits. There are three types of fees:
Reinvest reward – awarded to the reinvestor who hits the button
Admin charge – paid to network
Developer fee – given to the developer who created the strategy.
Yield Yak does not charge any deposit or withdrawal fees (although the underlying farms may).
The Reinvest button
Is it necessary for me to press the reinvest button?
No, someone else will press it for you to obtain the prize.
How does it function?
The reinvest button converts all the pending rewards in a pool to farm assets. It then reinvests them into the pool, compounding all farm member deposits. A variable reward incentivizes the user to press the reinvest button first.
Whoever is the first to hit the button receives the award, and all deposits are compounded.
If you have a transaction failure after hitting the reinvest button, it is often due to one of two factors:
You submitted a transaction even if the token reward exceeded the minimum threshold. However, the (gas) fee is relatively modest. (~0.03 AVAX).
The transaction requires more gas than the preset limit for reinvestment. You may need to increase the gas limit manually. Failure to do so may result in losing your entire default gas limit.
Yield Yak is available at Trader Pangolin, Joe‘s, and Lydia Finance. Popular Yield Yak trading pairings in the market include YAK/USD, YAK/AUD, YAK/CAD, YAK/INR, YAK/CAD, and YAK/PHP.
What is the highest trading price for Yield Yak?
Yield Yak’s traded at its all-time high price of $16,319.34 on September 23, 2021. (about 1 year).
What is the lowest trading price for Yield Yak?
Yield Yak’s all-time low price was $186.58 on November 28, 2022. (3 days).