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Yearn Lazy Ape ($YLA) is a cash-flow generating index composed of five Yearn stablecoin Vaults LP tokens. Each Vault LP token accumulates interest over time in stablecoins. YLA offers diversified exposure to Vaults in a single token. Discord channel
What is the Current Yield?
You can always check the current status of $YLA here:
PowerPool - YLA Index
A yield-generating DeFi product that provides exposure to an optimized basket of the most profitable Yearn stablecoin vaults EARN MORE WITH CVP LIQUIDITY MINING Mint YLA by quickly supplying USDC with ZAP and start earning its Basic yield Stake YLA together with CVP and earn CVP boost rewards YLA is designed for the truly passive yield seekers.
How yield is accumulated?
Yearn vaults accumulate profits inside the YLA pool, which means that Net Assets Value (NAV) inside the pool is constantly growing; hence the price of YLA is appreciating and earning you returns by just sitting in your wallet.
Index Coop's Criticisms of YLA...(versus their proposed SYI)
These points are being addressed in the latest upgrade to YLA
Stablecoin Pools: Index Coop Proposed Product: SYI...(would compete with YLA)
SYI allows all investors to invest in the market the same way money managers do in TradFi. Idiosyncratic risk is diversified away across a fleet of products. In its purest form, a static risk allocation is enhanced by tactical diversification. Meaning various productive assets are grouped together based on their risk and investments are made across risk tranches.
There is certain level of capital required to diversify risk across various DEXs, Lending and Asset Manager platforms, and small accounts are simply priced out. Small accounts are more worried about gas costs, added complexity and the time needed to manage such products. Small accounts place concentrated bets and hope that nothing goes wrong with that particular product. SYI changes this, the cost of purchasing SYI on a secondary market would be less than depositing into a mStable, Yearn or Rari Capital. This product also enables a simple passive hold strategy, which is a dream come tax time. All the interest is compounded and reflected in the token price.
There is further upside - the ability to invest in a product that holds the new V3 Uniswap NFT LP tokens and traditional ERC20 LP token. NFT LP tokens are coming and with that Curve’s moat is starting to eroded. SYI captures these market changes and progressively reallocates capital, this is the tactical element, and the results is to reduce idiosyncratic risk. This is just a right now example of how Index Coop can deliver peak user experience.
Upside - we are now starting to see treasuries across the space diversify away from their native token into more stable assets. Productive stable coins are a big part of this diversification strategy. As TradFi talent comes to DeFi the approach to managing treasury capital will become more like TradFi. We are seeing the early stages of this in-house at Index Coop and other DAO 8s are already further along. SYI becomes a very easy choice as a pillar of any diversified treasury. SYI enables teams to simplify their treasury and have a specialised resource managing their cash equivalent products for them.
Though there are currently other yield-generating Index Fund products, such as PowerPool’s Lazy Ape Index, the methodology utilized by other products are often less sophisticated and therefore do not come with the proper diversification benefits that Index’s SYI would have. For instance, the Lazy Ape Index has 100% exposure to Yearn’s v1 vaults and a significant portion (~42%) of the fund’s ~13.5% returns depends not on the underlying products’ yields but on PowerPool token incentives. By comparison, though a portion of Index’s SYI is allocated to products decidedly more risky than v1 Yearn Vaults, carefully considered allocation provides diversification which mitigates these risks while also allowing SYI to generate yields that will be higher than the Lazy Ape Index without token incentives.