LogoLogo
Home
  • 👋Welcome to Yield Yak
  • Milk Vaults
    • Intelligent On-Chain Yield
    • Suzaku Restaking
  • For Yield Farmers
    • 👉Why use Yield Yak?
      • 💪Optimal Auto-Compounding
      • ⚒️Single-Asset Leverage Strategies
    • 📈Returns and Tracking
    • 💸Compound Interest
    • 🔁The Reinvest Button
    • ⚠️Farming Risks
      • Pool 2
      • Impermanent Loss
      • Underlying Assets
    • 🚁Support
      • Stuck Transactions
      • Manual Withdrawal
    • Farms
  • For Traders
    • 👉Why use Yak Swap?
    • Yak Swap
  • For Yak Holders
    • 🐃YAK Token
    • 🪙Using YAK
    • 💰Treasury
    • 🏧Yak ARC
    • 🗳️Voting
    • Stake
  • For Developers
    • 👨‍💻Integrations
    • 🐛Bug Bounty
    • Yak Devs Telegram
    • GitHub
  • More Info
    • Website
    • Twitter
    • Telegram
    • Medium
    • Discord
    • Debank
Powered by GitBook
On this page
  • Save Time, Gas Costs, and Earn More Yield
  • Reduce Variance on Reward Asset Prices

Was this helpful?

  1. For Yield Farmers

Why use Yield Yak?

Earn More Yield, Save Time, and Reduce Variance

Save Time, Gas Costs, and Earn More Yield

Many DeFi protocols pay rewards to users in the form of tokens (farming rewards). Farmers who claim rewards often and compound their deposits maximise their rewards and farming yield. However, most farmers do not reach an optimal level of returns for two reasons:

  • Prohibitive gas costs to claim and compound farming rewards

  • High time commitment to frequently compound

Yield Yak helps all farmers earn more yield by pooling assets and socializing the costs of compounding. This means much more frequent compounding, which happens automatically.

Reduce Variance on Reward Asset Prices

Popular Yield Yak farms compound every few hours. Reward tokens are converted into deposit tokens on behalf of all users in the pool many times per day, providing users with a blended price exposure to reward assets.

Consider an example: A farmer stakes $50 of LP tokens into a farm. The farmer receives rewards worth 0.05 USDC 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.

During this period where the farmer is waiting for the rewards to be worth claiming and compounding, they are at risk of the reward asset price shifting.

Farmers who use Yield Yak instead, will earn the average price for rewards over the period while enjoying compounding effects on their deposits.

PreviousSuzaku RestakingNextOptimal Auto-Compounding

Last updated 6 months ago

Was this helpful?

👉
Page cover image