Our full methodology for the CAI index.
Any token included in the index must meet all the criteria below:
- The project’s token should have been listed on CoinGecko with pricing data at least 6 months prior to the date of inclusion in the index.
- The project should have a token that is native to Avalanche. This excludes wrapped variants, where the underlying tokens are locked on an alt-L1.
- The project should be a going concern, with a dedicated team actively building, supporting and maintaining the project.
- No rebasing or deflationary tokens.
- The project must be widely considered to be building a useful protocol or product. Projects that have ponzi characteristics at the core of their offering will not be considered.
- Synthetic tokens which derive their value from external price feeds are not permissible.
- The project’s token must not have the ability to pause token transfers.
- The project’s protocol or product must have significant usage.
- Token should have a Chainlink price feed to allow for manipulation resistant pricing.
- The project's token must have a circulating supply greater than 30% of the max supply. In cases where a token does not have a max supply, the minting mechanics would need to be assessed.
- The token must be listed on a supported exchange.
- The token should have in aggregate at least $2mm of onchain liquidity across Trader Joe, Platypus and Pangolin.
- The token must have shown consistent DeFi liquidity on Avalanche.
- The project must have been audited by smart contract security professionals with the audit report(s) publicly available. Alternatively, the protocol must have been operating long enough to create a consensus about its safety in the decentralised finance community.
- Assets are weighted according to their circulating market capitalisation as calculated on Coingecko.
- The maximum weight any one token can have is 50%. All excess weight is proportionally redistributed to all uncapped tokens.
- Any asset with a weight below 0.5% will be removed from the index.
- Each asset will support exactly one Yield Yak vault, unless one does not exist for that asset or the vault doesn't meet our criteria.
- 20% of each asset's reserve will be deposited into its respective Yield Yak vault.
The yield bearing vaults that CAI utilises must adhere to several key standards:
- Returns should not impacted by impermanent loss.
- The underlying protocol through which yield is generated must pass our security assessment. These include security audits, time in the market and significant usage, amongst others.
- Where leverage is used, it must be deemed low risk through the lending and borrowing of the same asset.
- Funds held by the vault must always be redeemable without lockups.
- Not impose any deposit fees or withdrawal fees.
Phuture handles all index management from rebalancing to allocating and tracking funds in yield bearing vaults.
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