Yield Yak. A dapp that auto-compounds your AVAX-based LP farming rewards.
It rebuys more LP tokens as rewards are generated. Generating more rewards. Growing your investment. Automatically!
Yield Yak Review
Let's walk through what you need to know about Yield Yak.
What is Yield Yak
An auto-compounding farming platform on AVAX. You should be excited about Yield Yak.
It works with LP tokens from popular Avalanche DEXs-- see below.
Yield Yak farms, on "All Farms" tab. And, Yield Yak makes you way more money on your LP rewards.
How does Yield Yak work
A quick brief on LP tokens
By providing liquidity, you earn rewards from the DEX's trading fees and (for example) governance tokens that are minted. The tokens can be sent and used in smart contracts just like a coin can be. Anyway ...
After depositing LP tokens from the above DEXs onto Yield Yak, the LP tokens are pooled via smart contracts (you can read more about Smart Contracts here if you feel the need to). Because the LP tokens are pooled with other users', the smart contract has more mining power, earning rewards faster, and diminishes AVAX fees.
Auto-compounding LP tokens
This is the best part: they have auto-compounding.
By yield farming, you get a variable APR. The LP tokens you hold: generate rewards.
Sure, you can compound the rewards manually. But the process to re-add liquidity will incur fees.
Yield Yak pools the LP tokens.
This process means you earn higher rewards over the long run.
Your LP rewards are compounded on autopilot. The fees you'd incur from harvesting and rebasing manually, are shared amongst all investors.
Is Yield Yak safe?
Well, it's still in very early beta stages. But, with that being said, I've had no problems with it so far. I have seen no negative publicity either. Really, I expect only good things from Yield Yak.
But, with that being said, do your own research.
Although I'm personally using Yield Yak, I would say Yield Yak is fairly high risk because it's still in the early stages, and it's yet to be audited.
Though, if you want to scan the code yourself, you can see the smart contract code on the Yield Yak Github.
How much can you earn from Yield Yak?
Yield Yak earnings fluctuate as the underlying LP farm rewards change.
But, considering there are a bunch of farms with over 1000-2000% APRs at the moment, the fact that these earnings are auto-compounded is causing the APY returns to max out and show 9999%.
Do with that information as you wish.
YieldYak PEFI farms are pulling over 9999% APYs at the moment.
The $YAK token is not out yet. I'll be running a post on it the second it drops because it's bound to be a popular one.
Yield Yak is surely destined for some huge parabolic price moves. So, get on the mailing list if you're not already on it so you are updated!
Yield Yak Review Summary
- Yield Yak is a yield farming optimizer and auto compounder
- It auto-compounds your LP mining rewards, leading to some outrageously high returns
- LP mining is pooled -- more efficient, more economical, more profitable