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Yield Yak, what is it?

Août 12, 2021
4.88 (812 votes)

Yield Yak, what is it? The efficient system that delivers more output and saves time. Autocompound on Avalanche.

Yield Yak

Yield Yak, earn more yield. Tools for defi users on $AVAX.

Here is auto-compounds farm rewards. Working together, small fish can farm like big whales.

Yield Yak, what is it?

Autocompounder
This project is an easy-to-use tool for getting more out of defensive farming on the Avalanche network.

Community-driven
This concept is a community-driven project. Our community has built and maintained the best, cheapest and most diverse autocompounder on the market.

Self-sustaining
Yield Yak is largely self-sustaining. Our community compounds rewards, suggests new strategies, proposes key configuration updates and contributes to development. Yield Yak farms can run forever, without the team’s involvement.

How does Yield Yak work?

Auto-compounds yield farm rewards.

  • Each farm is a pool of deposits from Yield Yak users
  • Farms earn reward tokens (like $PNG)
  • Farms reinvest all rewards, compounding everyone’s deposits

Yiel Yak, why use it? What are its advantages?

Save Time and Earn More Yield

Many DeFi protocols pay rewards to users in the form of tokens (farming rewards). Farmers who claim rewards often and compound their deposits maximize their rewards and farming yield. However, most farmers do not reach an optimal level of returns for two reasons:

  • Prohibitive gas costs to claim and compound farming rewards
  • High time commitment to frequently compound

This concept helps all farmers earn more yield by pooling assets and socializing the costs of compounding. This means much more frequent compounding, which happens automatically.

Reduce Variance on Reward Asset Prices

Popular farms compound every few minutes or hours. Reward tokens are converted into deposit tokens on behalf of all users in the pool many times per day, providing users with a blended price exposure to reward assets.

Consider an example: A farmer stakes $50 of LP tokens into a farm. The farmer receives rewards worth 0.05 AVAX per day. That means, on average, the farmer only generates enough value from claimed rewards to pay the gas costs by waiting for days or weeks.

During this period where the farmer is waiting for the rewards to be worth claiming and compounding, they are at risk of the reward asset price shifting.

Farmers who use Yield Yak instead, will earn the average price for rewards over the period while enjoying compounding effects on their deposits.

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