Introducing CAI, Colony Avalanche Index

Published by AVAX on

Brought to you by Colony and Phuture, and backed by Ava Labs, CAI is the benchmark index for investors wanting to get exposure to the Avalanche ecosystem.

It is composed of the native token (AVAX) and the most prominent projects in the ecosystem. The index improves returns for investors by generating yield on the underlying assets. These assets are rigorously selected and weighted to spread the risk and volatility in proportion to their market capitalisation.

Reasons to invest in CAI

  • All-rounded exposure to Avalanche 🔺

  • Additional returns from Yield Yak

  • Robust methodology to safeguard funds

  • The leading Avalanche index

CAI will maintain deep liquidity so investors can enter and exit seamlessly. It will be the largest Avalanche index, trusted by the top organisations in the Avalanche ecosystem.

CAI will be live soon. Colony and Phuture are working hard to bring CAI to all investors! You can pre-register for CAI here.

You will be able to invest in CAI through Colony’s platform and the Phuture app.

$2M Commitment from Colony

With CAI’s launch just around the corner, Colony will deploy up to $2M to bootstrap CAI’s TVL and attract liquidity.

This capital deployment strategy includes 3 pillars:

  • Minting CAI to bootstrap the TVL of the index.

  • Incentives (in CLY) to build deeper liquidity.

  • Providing liquidity in AVAX and CAI, minimizing slippage.

The capital will be gradually deployed until the end of the year. More information will be shared in the coming weeks.

Partnerships with Yeti Finance & Yield Yak

CAI announced an official partnership with Yeti Finance, to allow users to borrow using CAI, the Colony Avalanche Index, as collateral. This integration will take place after CAI’s launch and once the index token meets Yeti Finance’s integration requirements.

CAI also announced a partnership with Yield Yak. Idle assets can be a large opportunity cost. CAI minimizes that by depositing a portion of each asset into yield bearing vaults on Yield Yak. At launch, 20% of each asset reserve will be deposited into Yield Yak, increasing gradually over time.

For more information about CAI, check out the CAI’s Medium page


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This Week in Avalanche is an independent newsletter tracking the Avalanche ecosystem. The inclusion of a project is not endorsement or financial advice (DYOR).

Twitter: @WeekInAvalanche.

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