Kassandra’s new autocompounding strategy — TriCrypto
No one wants to leave their money idle, nor does Kassandra — let’s put it to work!
We’re happy to announce that the next Kassandra investment fund will come with a special feature: all tokens inside the pool will be yield farming and autocompounding rewards for you!
This is made possible by our partnership with our friends back at Yield Yak, who will be leveraging our investment fund returns with the 8th wonder of the world — compound interests.
The Kassandra TriCrypto Index will be an ARC20 token that represents a fraction in a portfolio that uses BTC, ETH, and USD to yield farm and autocompound rewards for you.
Why BTC, ETH, and USD?
After the launch of the Avalanche Social Index (aHYPE), which is an ever-changing portfolio that automagically invests in the most solid and engaged communities, we saw an opportunity to release a new index that offers a more conservative exposure to crypto.
Bitcoin and Ethereum are the two biggest crypto projects up and running, and excluding stablecoins, they are the two less volatile assets in the market — that is highly correlated to them.
This new investment product unites the safest crypto exposure to the importance of being protected against market downtrends to buy the dip, by holding a fair amount of the portfolio in stables.
While Bitcoin and Ethereum do not have the biggest yield farming opportunities, stables usually do. By having your money inside the Kassandra investment fund, not only will your principal be constantly rebalanced, but so will your farming rewards. This means that if stables have greater yields than BTC and ETH, you will be constantly using part of your returns to automatically buy more crypto!
How does it work?
For the regular user and investor, nothing will change from the regular Kassandra experience.
You will be able to invest in the strategy by buying a single token, with the exact same user experience of buying the Avalanche Social Index, and to withdraw your money you just need to return the token using the same interface. As simple as it gets.
But, under the hood, things change quite a bit.
We’ll be creating an investment pool using Kassandra Protocol technology, that works similarly to a liquidity pool for multiple assets, but instead of letting BTC, ETH, and stables inside the liquidity pool, we’ll be holding receipt tokens from Yield Yak invested assets. To ease the user experience, we’ll be creating a proxy contract that will automatically wrap the assets on Yield Yak for every interaction with the pool: investing, withdrawing, and swapping, all will be done with the original assets. But inside the pool, we’ll be holding Yield Yak receipts, with the assets yield farming.
The Kassandra TriCrypto Index will be the first, but not the only investment fund to benefit from this new autocompounding strategy.
Teaming up with Yield Yak to provide a yield-earning portfolio is a great step towards leveraging returns as a whole for Kassandra's portfolio management. This first pool will work as proof of concept, and if it does well, we plan to keep using this yield farming approach for every next Kassandra product, and even update the already running Avalanche Social Index.
Stay tuned, we’re working very hard on delivering the state of the art in decentralized portfolio management.
About Yield Yak
Yield Yak makes numbers go up. Ape into new autocompounder farms with quick releases and high yields. Swap on Yak for the best prices on trades with zero aggregator fees. Sit back and just earn, including big APYs on stablecoin farms.
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Kassandra is an audacious project to delegate money management in a decentralized, efficient, and customizable way, working as a marketplace for tokenized and data-driven investment strategies.