What is Yield Yak?

What is Yield Yak?

What is Yield Yak?

…and how do you make money on it?

Dapps & Protocols

·

13 min

What is Yield Yak?

…and how do you make money on it?

Dapps & Protocols

·

13 min

What is Yield Yak?

…and how do you make money on it?

Dapps & Protocols

·

13 min

What is Yield Yak?

…and how do you make money on it?

Dapps & Protocols

·

13 min

What is Yield Yak?

Have you been wandering the vast landscape of DeFi protocols, searching for the holy grail of high yield liquidity pools, only to end up with sore thumbs and a lighter wallet? Fear not, my friends, for Yield Yak is here to guide you to greener pastures (or, should I say, snowier ones?) on the Avalanche blockchain.

With Yield Yak, you can forget about rationing your food to pay for gas fees. Avalanche's lightning-fast and cheap transactions will make you feel like you're getting away with highway robbery. And as for finding the highest paying liquidity pools? Leave that to Yield Yak. It's like having a GPS for DeFi profits – just hop on, follow the Yak's lead, and watch your wallet fill up faster than a snowdrift in the Rockies. So saddle up and join the race for DeFi riches, because with Yield Yak, the sky's the limit.


Yield Yak mainly derives its value form from compounding the yields on your behalf. But this is just a small part of what Yield Yak is capable to do. The protocol has been designed to be a one-stop-shop for everything DeFi on Avalanche. Users have a host of features for their crypto, from the mundane swaps to liquid staking. 

To explain Yield Yak, it is important to mention that liquidity provision comes with two incentives: transaction fees, and the protocol's native token. Usually, DeFi protocols reward LPs with the protocol's native token, which can be staked or offered as liquidity in other pools. But here comes the problem: the APY gained from farming tokens is sitting idle until the user decides to reinvest it into the liquidity pool. This process is called "compounding," and it's how decent gains are turned into mega gains over time.

At this point, you may be wondering what's so revolutionary about this concept? Indeed, compounding is just a simple strategy to increase your portfolio – if only it wasn't so tedious. Think about it, applying compounding to 10 or more assets takes time and costs fees with every withdrawal and deposit. And Yield Yak does exactly that!

Yield Yak protocol has simplified the compounding process to the point where the user simply has to press a single button – no KYC required. In exchange for this service, the protocol charges a small fee that goes into the development and code maintenance.

Fees collected by Yield Yak are Yak Fee Collector, a special treasury wallet which allows anyone to see the protocol revenue and how the fees are distributed. Fees are collected mostly in WAVAX, although it may come in the form of other coins as well. These altcoins are then converted to WAVAX by the admin account. 


The treasury is managed by committee with funds held in a separately controlled multisig and other contracts and accounts. Because Yield Yak is basically a set of smart contracts, the team is directly responsible for safeguarding the protocol against hacks and exploits.

Yield Yak is decentralized, meaning that the protocol is governed by the team in collaboration with the YAK token holders. YAK token holders can vote on changing the protocol parameters and how the protocol treasury is spent. Yield Yak relies on multisig to protect the treasury from rogue actors and hacks. It is a popular security mechanism that is used by DeFi protocols. As of 2023, Yield Yak has never been hacked. 

How does Yield Yak work?

Yield Yak has made a name for itself as the de facto platform for auto-compounding on Avalanche. Thanks to this feature, Yield Yak has grown to become one of the biggest DeFi protocols on Avalanche. Aside from auto-compounding, Yield Yak has incorporated features such as swaps and liquid staking. Let's see how each of these components work!

Yield Yak Auto-Compound

The auto-compound feature on Yield Yak occurs multiple times per day and involves depositing users' reward token into the liquidity pools they participate in. The power of this feature lies in doing the auto-compound with a single deposit rather than each users' separate deposit. Funds are pooled together, resulting in a single fee.

For example, a farmer stakes $100 of LP tokens into a farm. The farmer receives rewards worth 0.10 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.

While Avalanche fees make it feasible to do the compounding manually, the actual process is time consuming. Imagine withdrawing your LP position along with the generated yield, and reinvesting the aggregated funds back into the pool. Now think of manually compounding 3-4 assets, multiple times a month. 


Yield Yak is capable of generating higher returns for two simple reasons: higher compound rate and a bigger LP position.

The compound rate is determined by the user. Yield Yak is capable of optimizing profits, BUT it only automates the scanning process and the transactions – the user has to manually press the "REINVEST BUTTON" in order to initiate compounding. This gives the user a higher degree of autonomy and control. 


To be clear: the Reinvest Button can be clicked by anyone in the pool. Even if you don't press the button, someone else will, and every pool participant gets the reward. 

In order to get the most out of Yield Yak's auto-compounding feature, users should reinvest their yields as often as they can. This action takes all the funds from the liquidity pool, converts them into LP tokens, and reinvests them back into the pool. This compounds deposits for everyone in the farm.

It is important to note that every time the reinvesting occurs, 5% of the rewards go into the Yield Yak Treasury, 3% goes to the one who pressed the button, and the remaining tokens are deposited back into the pool.

Let's say the pool has accumulated 100 X tokens in pending rewards, and you are the lucky person to click the button before everyone else. This gives you 3% of the rewards accumulated by then. Meanwhile, the Yield Yak LP position has grown bigger, which means more returns for everyone.


By offering 3% of the rewards, Yield Yak incentivizes depositors to collectively monitor the LP position, and increase the compound rate. As the LP position increases, Yield Yak pools are positioned to capture more LP fees across the Avalanche ecosystem. Such is the power of auto-compounding!

Yield Yak DEX and Swap

As previously mentioned, Yield Yak is more than just an auto-compound feature. The protocol also incorporates a DEX and a Swap dapp where users can provide liquidity and exchange tokens. 

Users who simply want to provide liquidity can explore a variety of Avalanche-native assets. With a simple user-interface, yield farming has never been easier. Just connect your wallet, choose the assets to farm and there you go!

Yak Swap was built to be the best swapping engine on Avalanche. Yak Swap compares the prices available on most DEXs and finds out the best one for you. Even if the token pair has limited liquidity, Yak Swap is able to find the best route, taking price slippage into account.

Yield Yak Liquid Staking

Recently, Yield Yak has partnered with Geode to facilitate liquid staking on the Avalanche network. Geode will provide the trustless liquid staking product with dynamic withdrawals via Yield Yak’s user interface.

The idea is that AVAX staked is locked for a fixed duration, effectively taking out tokens out of circulation. Liquid staking represents a way to stake tokens and receive a tradable (liquid) version of token that can further be utilized like a normal token. 


Currently, around 60% of all circulating AVAX is locked on the P-Chain which secures the Avalanche network. Validators and delegators earn AVAX rewards in exchange for staking (for a minimum of two weeks).

Users who stake via Yield Yak receive a new token, yyAVAX, which is an Avalanche C-Chain representation of staked AVAX on P-Chain. yyAVAX holders will accrue the staking yield just by holding the token.  

How to make money on Yield Yak?

Making money on Yield Yak relies mainly on its auto-compound feature. The best part is that you can start out small and work your way up to a bigger portfolio. This is a passive strategy that works while managing multiple assets on the Avalanche blockchain. It's not complicated at all, and you are free to withdraw your tokens anytime.

It is important to take account of the risks, namely impermanent loss. One way in which you can reduce your exposure to impermanent loss is to provide liquidity for pairs where the relative price of each asset remains fairly constant. For example, a stablecoin pair like DAI-USDT would give you very little exposure to impermanent loss. The downside of these pools however, is, you gain no benefit from price increase, the number of these pools are fewer and the returns may not be as attractive as other pools.

At the end of the day, auto-compounding with Yield Yak is a low risk–medium reward strategy. The key factors are the size of your deposit, the liquidity pools, and the time you are willing to commit. 

Yield Yak Auto-Compound

Before we can talk about auto-compounding, you need to open an LP position on Yield Yak. Once you have opened the position, the auto-invest feature becomes available. This is an optional feature, as you can enjoy the APY from your initial deposit. 


To open an LP position on Yield Yak, follow these steps:

1. Open the Yield Yak app

2. Navigate to the "Yak Pools" at the top of the window

3. Select the pool of your choice

4. Input the amount of tokens you wish to deposit

5. Approve the transaction

6. Click "Deposit"

Congrats! You have opened your first LP position on Yield Yak. Now, you can watch your yields grow in real-time. If you want to use the reinvest feature, the next step is to deposit the LP tokens in the Yield Yak farm. To sort the Yak Farms click on "All pools" and type "Yield Yak" in the search filter.

If you want to use Yield Yak exclusively for the auto-compound feature make sure to check the Yak pools first and see if your asset is supported.

Yield Yak Staking

Staking on Yield Yak involves locking up your YAK tokens in order to share the protocol transaction fees. The estimated daily rewards are calculated in real-time, which gives you the option to assess your earnings.


To stake YAK, follow these steps:

1. Open the Yield Yak app

2. Navigate to the "Earn" button at the top of the window and click "Stake YAK"

3. Select the pool of your choice

4. Input the amount of tokens you wish to deposit

5. Approve the transaction

6. Click "Deposit"

Yield Yak Liquid Staking

Liquid staking is a great way to unlock more utility from your staked AVAX. You get the staking yield and a tradable token – two in one! In exchange for staking AVAX with Yield Yak, users receive yyAVAX on a 1:1 ratio. Put simply, yyAVAX is the interest-bearing version of AVAX. Simply holding yyAVAX means that yyAVAX is accruing value.


To stake AVAX, follow these steps:

1. Open the Yield Yak app

2. Navigate to the "Liquid Staking" button at the top of the window

3. Click on the "Get yyAVAX" button

4. Input the amount of AVAX to stake

5. Approve the transaction

6. Click "Deposit"

With your newly minted yyAVAX tokens, you can now farm them, or trade them like a normal token. 

10% from the Avalanche P-Chain staking rewards are taken in fees. Half of these go to the Eden Network for their Validator Network & Yield Generation services. The other half goes to Yield Yak to use to build adoption and incentivize DeFi utility for yyAVAX in the Avalanche ecosystem.

Price Prediction for YAK — Can it hit $1000?

Buying and hodling YAK — the native token of Yield Yak— is one way of potentially making money on Yield Yak.

By looking at its current price, it’s natural to think about the chance of YAK hitting $1000 per token. This can happen sooner, or way in the future, and is determined by a couple of ever changing factors.

Let’s examine the potential growth of the YAK token by analyzing its tokenomics. YAK’s current market cap sits comfortably at ${MARKET_CAP}. With {CIRCULATING_SUPPLY} YAK tokens being in circulation today, that means a price of {PRICE} per YAK.

How did we come to that calculation? It’s quite easy, the price of a YAK token is equal to its current market cap divided by the number of tokens in circulation. Dividing ${MARKET_CAP} by {CIRCULATING_SUPPLY} gives us a result of {PRICE} for each YAK coin. 

By changing the order in the simple formula above we can use it to calculate other things as well. This helps us a lot because we can deduce the market cap of YAK at different token prices. Then, we can use the result to compare it to the current state of the network and see what would be required for YAK to hit that price.

At a price of $1000 per token, that means the current market cap of YAK would equal ${{CIRCULATING_SUPPLY} * 1000}. Remember that we arrived at this number by multiplying the amount of circulating tokens by $1000.

Now let’s shift our attention to the fully diluted market cap.

Some blockchains may have their tokenomics built in a way that only a small percentage of tokens are circulating at the beginning. This can be misleading because we don’t have the full picture and only take into account the current number of coins released in the market.

The fully diluted market cap represents the total value of a coin if all tokens were in circulation. YAK’s whole supply of tokens is {MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} YAK which means that no more coins above that number will ever be created.

These tokens are not created at the discretion of a specific entity. They are created automatically by the network to reward different actors that keep it secure.

How does this impact the price of YAK? Taking into account the current price of a YAK token, that would result in a fully diluted market cap of ${MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY * PRICE}. YAK coins that have been burned are not taken into consideration because they have been permanently removed from circulation.

Whether it seems gigantic or not, the number we came to above only takes into account the current price of a YAK token. Doing the same calculation but with a price of $1000 gives us a result of ${{MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} * 1000} for the YAK protocol fully diluted market cap.

These are all crucial details to know when calculating if YAK can reach the price of $1000 per token. If the diluted market capitalization is way too high, the token has little room left to grow. Blockchains in general have no cap on the value they can reach, whether that number seems possible it’s totally up to you.

The future of YAK depends solely on its growth as a network used by tens and hundreds of millions of users.

If you’re looking to add some YAK to your portfolio, the most trusted places to get some are Binance and Coinbase.


Ultimate Web3 Automation

A lil' more goodness

What is Arrakis Finance?

Dapps & Protocols

·

26 min

What is Saber Finance?

Dapps & Protocols

·

26 min

What is Balancer?

Dapps & Protocols

·

26 min

What is Status?

Dapps & Protocols

·

26 min

What is MuesliSwap?

Dapps & Protocols

·

26 min

What is Across Protocol?

Dapps & Protocols

·

26 min

What is SushiSwap?

Dapps & Protocols

·

26 min

What is Velodrome Finance?

Dapps & Protocols

·

26 min

What is Pangolin?

Dapps & Protocols

·

26 min

What is Metal?

Dapps & Protocols

·

26 min

What is Golem?

Dapps & Protocols

·

26 min

What is Orca?

Dapps & Protocols

·

26 min

What is Compound?

Dapps & Protocols

·

26 min

What is ROOK?

Dapps & Protocols

·

26 min

What is Mango?

Dapps & Protocols

·

26 min

What is Harvest Finance?

Dapps & Protocols

·

26 min

What is Enzyme?

Dapps & Protocols

·

26 min

What is Origin Protocol?

Dapps & Protocols

·

26 min

What is Frax Finance?

Dapps & Protocols

·

26 min

What is BENQI?

Dapps & Protocols

·

26 min

What is OpenSea?

Dapps & Protocols

·

26 min

What is iExec?

Dapps & Protocols

·

26 min

What is Yearn Finance?

Dapps & Protocols

·

26 min

What is Toros Finance?

Dapps & Protocols

·

26 min

What is LooksRare?

Dapps & Protocols

·

26 min

What is Elk Finance?

Dapps & Protocols

·

26 min

What is Quickswap?

Dapps & Protocols

·

26 min

What is Pool Together?

Dapps & Protocols

·

26 min

What is Multichain (Anyswap)?

Dapps & Protocols

·

26 min

What is Thales?

Dapps & Protocols

·

26 min

What is Crabada?

Dapps & Protocols

·

26 min

What is Timeswap?

Dapps & Protocols

·

26 min

What is Abracadabra Money?

Dapps & Protocols

·

26 min

What is Sudoswap?

Dapps & Protocols

·

26 min

What is Injective Protocol?

Dapps & Protocols

·

26 min

What is Mixin?

Dapps & Protocols

·

26 min

What is 0VIX Protocol?

Dapps & Protocols

·

26 min

What is Swaap Finance?

Dapps & Protocols

·

26 min

What is BurgerCities?

Dapps & Protocols

·

26 min

What is Lyra?

Dapps & Protocols

·

26 min

What is Solend?

Dapps & Protocols

·

26 min

What is Mean Finance?

Dapps & Protocols

·

26 min

What is The Graph?

Dapps & Protocols

·

26 min

What is AAVE?

Dapps & Protocols

·

26 min

What is Gods Unchained?

Dapps & Protocols

·

26 min

What is Synthetix?

Dapps & Protocols

·

26 min

What is Gelato?

Dapps & Protocols

·

26 min

What is JustStable?

Dapps & Protocols

·

26 min

What is Aavegotchi?

Dapps & Protocols

·

26 min

What is RociFi?

Dapps & Protocols

·

26 min

What is Perpetual Protocol?

Dapps & Protocols

·

26 min

What is Linear Finance?

Dapps & Protocols

·

26 min

What is 0x Protocol?

Dapps & Protocols

·

26 min

What is Monolith?

Dapps & Protocols

·

26 min

What is Keep Network?

Dapps & Protocols

·

26 min

What is Dune Analytics?

Dapps & Protocols

·

26 min

What is Holochain?

Dapps & Protocols

·

26 min

What is Gnosis Safe?

Dapps & Protocols

·

26 min

What is StakeDAO?

Dapps & Protocols

·

26 min

What is 1Inch?

Dapps & Protocols

·

26 min

What is Angle Finance?

Dapps & Protocols

·

26 min

What is Magic Eden?

Dapps & Protocols

·

26 min

What is Pickle Finance?

Dapps & Protocols

·

26 min

What is dYdX?

Dapps & Protocols

·

26 min

What is Ellipsis Finance?

Dapps & Protocols

·

26 min

What is Decentraland?

Dapps & Protocols

·

26 min

What is Convex Finance?

Dapps & Protocols

·

26 min

What is Dfyn?

Dapps & Protocols

·

26 min

What is Rocket Pool?

Dapps & Protocols

·

26 min

What is Shiba Inu?

Dapps & Protocols

·

26 min

What is MakerDAO?

Dapps & Protocols

·

26 min

What is Penguin Finance?

Dapps & Protocols

·

26 min

What is Akropolis?

Dapps & Protocols

·

26 min

What is Francium?

Dapps & Protocols

·

26 min

What is Storj?

Dapps & Protocols

·

26 min

What is Saffron Finance?

Dapps & Protocols

·

26 min

What is Adamant Finance?

Dapps & Protocols

·

26 min

What is Raydium?

Dapps & Protocols

·

26 min

What is SundaeSwap?

Dapps & Protocols

·

26 min

What is Synapse?

Dapps & Protocols

·

26 min

What is Reserve?

Dapps & Protocols

·

26 min

What is Alchemix?

Dapps & Protocols

·

26 min

What is Ankr?

Dapps & Protocols

·

26 min

What is Apricot Finance?

Dapps & Protocols

·

26 min

What is Trader Joe?

Dapps & Protocols

·

26 min

What is Router Protocol?

Dapps & Protocols

·

26 min

What is Alpaca Finance?

Dapps & Protocols

·

26 min

What is Index Coop?

Dapps & Protocols

·

26 min

What is API3?

Dapps & Protocols

·

26 min

What is Band Protocol?

Dapps & Protocols

·

26 min

What is Hop Protocol?

Dapps & Protocols

·

26 min

What is Port Finance?

Dapps & Protocols

·

26 min

What is Augur?

Dapps & Protocols

·

26 min

What is Aragon?

Dapps & Protocols

·

26 min

What is BadgerDAO?

Dapps & Protocols

·

26 min

What is Uniswap?

Dapps & Protocols

·

26 min

What is Cometh?

Dapps & Protocols

·

26 min

What is Request Network?

Dapps & Protocols

·

26 min

What is Chainlink?

Dapps & Protocols

·

26 min

What is TrustSwap?

Dapps & Protocols

·

26 min

What is Set Protocol?

Dapps & Protocols

·

26 min

What is MeanFi?

Dapps & Protocols

·

26 min

What is Saddle Finance?

Dapps & Protocols

·

26 min

What is Axie Infinity?

Dapps & Protocols

·

26 min

What is Serum?

Dapps & Protocols

·

26 min

What is Bonfida?

Dapps & Protocols

·

26 min

What is Atlendis Protocol?

Dapps & Protocols

·

26 min

Stay in the loop

No spam, just certified good stuff

Stay in the loop

No spam, just certified good stuff

Stay in the loop

No spam, just certified good stuff

Stay in the loop

No spam, just certified good stuff

Stay in the loop

No spam, just certified good stuff