OrcaDAO is the first native Stablecoin (AVAI), and Governance token (ORCA) pair that allow for lending using crypto collateral at 0% interest, built on and for the Avalanche Network.
For the first time ever, Yak users will be able to utilize their deposited assets on Yield Yak as collateral. Deposit your YRT (Yak Receipt Token) into https://www.avai.finance vaults and mint the AVAI stablecoin for a 0% loan. Your deposited assets on Yield Yak will continue to auto-compound in the background. The AVAI stablecoin is pegged to the USD (1 AVAI = 1 USD).
Users of Yield Yak will be able to stake their YRT in OrcaDAO’s vaults. Initially, the vaults will accept single sided assets only and will begin with the AAVE $AVAX lending strategy with more single-asset strategies to follow. In the future there are plans to extend this to include YRT tokens from LP farms as well.
A user can only borrow up to a certain percentage of the USD value of their collateral. To start, a cap of 50% will be implemented, which means that if you deposit $100 worth of USDC via your Yak Receipt Token, you can borrow up to $50 of AVAI. Please tread carefully! The liquidation threshold is also set at 50% so we advise giving yourself plenty of room beneath that. Note that the 50% limit will be reviewed on an ongoing basis.
To ensure accurate prices of the collateral, a Chainlink oracle price feed is used as a source. There is a fee for paying back the token of 0.75%, allowing a revenue vehicle for the project. This is mandatory to ensure the accuracy of vaults as prices can change quickly and the vaults need to remain efficient at all times.
This new integration with OrcaDAO’s lending platform opens up some incredible new yield strategies for Yield Yak users that are unavailable anywhere else on Avalanche.
“Thanks to this integration, Yield Yak users can continue to auto-compound their assets on Yield Yak but they can also make use of their existing assets on the platform and take out leveraged positions with the confidence of 0% interest on the loan. We’re thrilled to be the first Avalanche-native protocol utilizing Yield Yak YRT token as collateral.”
— Kyle, Main dev at OrcaDAO
“This integration is a huge step forward for Yield Yak: it allows users with unmatched yield earning opportunities in the Avalanche defi ecosystem. We’re excited to partner with OrcaDAO to deliver leverage auto-compounding yield bearing tokens as collateral.”
— Dylan, Comms at Yield Yak
Step by Step Instructions: How to Deposit your YRT token into a vault and start borrowing AVAI
As a first time user, you will need to begin by setting up a vault. There is a minor Avalanche network transaction fee involved in setting up a vault. This is a one time setup cost.
Steps:
- Head to: https://app.avai.finance/vaults and select ‘Create Vault’.
- Click on ‘Create Vault’ next to the asset you would like to deposit as collateral.
- Once your vault is created, click ‘Manage’ to access the actions that can be taken within.
- To Deposit into the Vault, scroll to the bottom, and enter your desired collateral amount and click ‘Deposit’
How to Borrow
Once the deposit process above is complete, the Borrow function is straightforward.
- Select ‘Loans’ at the top of the page, which will take you to the Borrow tab. Enter the amount of AVAI you would like to borrow and click ‘Next’.
- The next page will calculate the LTV that this will put in the vault, as well as confirming the amount to be added as debt.
- The wallet will ask you to confirm once more. Once that has been confirmed, you will see your wallet balance update for AVAI at the top of the page. The transaction has been completed, and you can now use this AVAI however you want.
You can read more about OrcaDAO’s lending and using leverage here.
About Yield Yak
Yield Yak is an easy-to-use tool to earn more yield from defi farming on the Avalanche network.
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About OrcaDAO
OrcaDAO is an Avalanche native protocol designed to offer and optimize a Stablecoin (AVAI), and Ownership/Governance token (ORCA) pair that allow for lending using crypto collateral at 0% interest. The protocol centers around the production, maintenance, and sustained equilibrium of AVAI around a stable value, used by the DeFi community for a multitude of use cases — such as loaning/borrowing and yield farming — with a high level of confidence.
OrcaDAO has been thoughtfully designed and optimized to be flexible for Avalanche users’ ever-changing needs, including: no lower-bounds on multiple collateral options, partial liquidations allowing for more forgivable loan processes, a firm peg designed to float within a cent of $1.00USD, and a triple bottom line focused revenue sharing initiative in support of marine/ocean conservation and restoration efforts via the OrcaDAO SeaFund
