Yield Yak operates on Avalanche, Arbitrum and Mantle, and offers very quick and easy strategies for users to get started earning rewards. Functions include automated staking and compounding to maximize capital efficiency, along with the asset-managing Milk function, where certain points rewards can be picked up, while there are also on-platform staking functions and a swap aggregator.
Last week we looked at the Avalanche ecosystem and some of the top protocols where you can pick up solid yield, and this time we’ll focus on Yield Yak, another Avalanche protocol with a lot of strategies on offer.
To catch up on how to begin exploring Avalanche DeFi, including wallets, bridging, and protocols, you can take a look at the earlier guide first–How to Get Started With DeFi on Avalanche–and before we carry on, as always, be aware of the risks involved when you use DeFi protocols, which include: smart contract vulnerabilities, impermanent loss, frontend attacks, and systemic risks across crypto. For more details on farming risks, please also check the Yield Yak official documents.
What Is Yield Yak?
Operating across Avalanche, Arbitrum and Mantle, Yield Yak offers an easy-to-use interface and provides farms that execute strategies and auto-compound rewards, meaning users can deposit funds, which are then pooled with deposits from other users, and with a few clicks you can very quickly get started earning.
Strategies on Yield Yak
To get started earning on Yield Yak, connect your wallet to the app and there are then various approaches you can take advantage of. We’ll look through them with examples, but make sure to browse all the options on offer, and be aware that the details, including APYs and TVLs, are always changing, so check carefully for the latest information before making any transactions.
Yield Strategies
Click on the Yield tab, and at the moment you’ll get 42 different active yield strategies to choose from, employing a range of tokens. As an example of how to participate, let’s check the option that uses the AUSD stablecoin (issued by Agora) with Benqi (another Avalanche platform), which has a current APR of 6.8%.
Click on AUSD and you’ll then get a very straightforward interface where you can check the APR and TVL again, and you simply need to enter the amount to use and click through the deposit process, confirming transactions in your wallet as required. Additionally, there’s a Withdraw tab for when you want to remove your assets.
Additionally, this option states that it offers 1X leverage (or in other words, it’s not leveraged), but back on the Yields main page, you can search for all leveraged strategies, which allow you to automatically loop your original deposit into a larger position (check this earlier guide about Kamino on Solana for more detail about looping), so for example at the moment, the BTC.b strategy provides 3X leverage (although the APY is only 1.4%).
Milk Strategy
Yak Milk, sounds nutritious but this is actually a feature labelled as Intelligent Onchain Yield. It launched this year, and it’s designed to make sure your assets are deployed efficiently in order to maximize yield, automatically compounding rewards on a frequent basis.
Additionally, the strategies on offer here…
