Before we get started, a reminder that this is not a recommendation or endorsement to buy any tokens mentioned in this tutorial.
Today, I’ll share a familiar farm aggregator from a newer protocol called Yield Yak, launched on the Avalanche smart contracts platform.
Whether or not Avalanche should be compared with other L1 blockchains like Ethereum, Terra, or Solana, isn’t something I’m here to debate. What I can share is that Avalanche offers permissionless finance applications (aka open finance without the guarantee of the same degree of decentralization). You can also conveniently use MetaMask to interact with Avalanche DeFi applications, and your wallet addresses on Ethereum are the same addresses as on Avalanche.
Having launched its main net in September 2020, Avalanche is an EVM-compatible blockchain with smart contracts. Avalanche is self-described as:
“The fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol.”
Avalanche recently kicked off a program called Avalanche Rush, with $180M in rewards to attract blue-chip DeFi applications and yield farmers. Avalanche has mentioned already committing $20M in AVAX for Aave users, $15M in AVAX for SushiSwap users, and $7M in AVAX for Curve users. More names have been announced like Paraswap and many more are expected.
Amid this rush of protocols to be added to Avalanche, there’s been a combination of new rewards incentivizing yield farmers on Avalanche protocol as well a spike in DeFi activity and token prices related to Avalanche. The result of this is the juicy yield for any farmer willing to risk capital in these new and more veteran DeFi protocols on Avalanche. Btw, by “veteran” I mean more than a few months so please investigate any Avalanche protocol before jumping into a farm. The whole landscape is in its early stages of development.
How to Earn Up to 10,000% APY with Yield Yak on Avalanche
In today’s opportunity, I’ll show how I can earn as high as 10,000% APY (and maybe higher) with Yield Yak. Yield Yak is like Yearn.Finance on Ethereum, except imagine if Yearn could frequently sell rewards from yield farms with cheap gas fees, to continually auto-compound farming positions.
Yield Yak auto-compounds yield farm rewards by:
- Pooling deposits from Yield Yak users (LPs, single tokens, or lending positions) to socialize the costs of compounding
- Farming the earned rewards (ie AVAX or PNG)
- Taking profits and reinvesting the rewards, which compounds Yield Yak deposits
To get a sense of how much larger rewards can be when you automate taking profits and compounding the position more frequently, compare the Simple APY with the Compound APY below. In some cases, it’s 6-10X more yield.
I will show how I can use Yield Yak to find opportunities with tokens I hold or want exposure to and then how to get started with my “yield farm on auto-pilot.”
Please also be aware of a few major risks.
- Smart contract risk on Yield Yak and any other protocol involved in the farm, which includes AMM protocols like Trader Joe or lending protocols like Benqi.
- Oracle failure could contribute to a loss of funds.
- Pegged assets can de-peg.
- The quoted APYs fluctuate a lot and in some cases are incorrect on the Yield Yak…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
