CIP #11 - 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%)