CIP #10 - Yield Bearing Avalanche Ecosystem Index

Status: Proposed Discussion link: https://gov.cook.finance/t/avalanche-ecosystem-with-yield-bearing Created: 1/10/22

Executive Summary

To add a yield bearing Avalanche Index on Avalanche.

Problem Statement

The problem is that many of the components of the Avalanche Ecosystem Index can actually be yield bearing through yield yak or other staking pool but currently aren’t.

Proposed Solution

Overview

Create a yield bearing Avalanche Ecosystem index on Avalanche. The yield bearing Avalanche Ecosystem index should use yield farming on yield yak to make it yield bearing.

Rationale

Since many of the components of the Avalanche Ecosystem Index can be yield farming it will provide benefits to index issuers with extra APY across all the index assets.

Specification

To request that the Cook core team implement a yield bearing Avalanche Ecosystem index on Avalanche. The Yield bearing Avalanche Ecosystem index includes AVAX, JOE, QI, Time, 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 gain extra interest and Time should be staked and wrapped as wMemo to gain interest.