CIP #14 - Avalanche Ecosystem Yield Bearing Index Update

Status: Proposed Discussion link: https://gov.cook.finance/t/avalanche-ecosystem-yield-bearing-index-update/ Created:1/31/22

Executive Summary

Remove wMEMO from YB-AEI

Problem Statement

There were some major negative discoveries about wMEMO. Many people from the community expressed the opinion that they do not want indexes that have wMEMO because of these discoveries.

Proposed Solution

Overview

Create a new yield bearing Avalanche Ecosystem index on Avalanche without wMEMO. Delist old YB-AEI

Rationale

Responding to community requests and to make sure index compositions are kept at the highest quality

Specification

Implement a new yield bearing Avalanche Ecosystem index on Avalanche. The Yield bearing Avalanche Ecosystem index includes AVAX, JOE, QI, YAK and PNG and the allocation should follow their market cap. Additionally AVAX, JOE, QI, YAK and PNG should be deposited into Yield Yak for yield farming to generate additional APY.

Delist the old YB-AEI a week after listing of new YB-AEI

On the date of delisting, the old YB-AEI will be accessible only to their token holders and they will have options to keep them or the option to redeem the index back to underlying tokens.

Stop index staking rewards for the old YB-AEI and in turn open index staking for the new YB-AEI a week after new YB-AEI launch.