Partnering with CAI to power Avalanche
SteakHut is working with CAI- The Colony Avalanche Index, to provide optimized, capital-efficient liquidity solutions to the Avalanche ecosystem.
SteakHut has partnered with CAI, Colony Avalanche Index, to facilitate capital-efficient liquidity provisions on top of Trader Joe V2, the leading decentralized exchange of Avalanche.
“Our goal is to work with the best projects on Avalanche, and help provide deep liquidity to everyone’s favourite tokens”
- Ribeye, Co-Founder SteakHut Finance
SteakHut is helping create an efficient concentrated liquidity layer for Avalanche. Our first-of-a-kind liquidity management platform keeps concentrated liquidity positions optimized and automated. Allowing for extremely capital-efficient liquidity.
The CAI-AVAX Liquidity Vault
The CAI-AVAX liquidity vault is now open to users across Avalanche to provide liquidity and earn swap rewards.
SteakHut is a key liquidity provider for the Trader Joe V2 DEX. The CAI-AVAX liquidity vault provides liquidity to the CAI-AVAX pool and uses SteakHut’s smart contracts to keep liquidity active through automated rebalancing.
SteakHut’s liquidity provisions offer LPs a range of “set-and-forget” liquidity options to deposit their tokens and keep returns optimized.
Once deposited, your tokens will be rebalanced and reinvested automatically by SteakHut’s smart contracts. This will work to ensure that your liquidity always operates within the bounds of the strategy you choose, saving you time and gas from having to manage your own liquidity daily.
Users can deposit into the liquidity vault in a few easy steps:
- Step One: Locate the CAI-AVAX strategy on the SteakHut platform
- Step Two: Enter the amount of CAI & AVAX to stake (note SteakHut uses concentrated liquidity, the vault ratio will often fluctuate from 50:50)
- Step Three: Approve both tokens with SteakHut
- Step Four: Deposit and approve the transaction
CAI-AVAX Technical Parameters
The CAI-AVAX strategy has been created in collaboration with the Colony and Phuture Finance team. The goal of the strategy is to maximize liquidity efficiency and help reduce potential slippage when swapping CAI on the secondary market.
- Strategy design: Dynamic Range Strategy — Liquidity is provided on Trader Joe V2 in set bins surrounding the active bin. When the active bin moves towards the edge of SteakHut’s liquidity range a rebalance is called. This ensures that liquidity is always provided surrounding the active bin.
- Liquidity Range: Balanced — The balanced CAI-AVAX strategy utilizes an even distribution of liquidity. This strategy allows for liquidity distribution to support a relatively large trading range and to reduce the impacts of impermanent loss. During more volatile market conditions, and over longer time periods this strategy is expected to outperform a concentrated option.
- Rebalancing Mechanism — The strategy utilizes Chainlink Automation to automatically trigger a rebalance when the active bin approaches the edge of SteakHut’s liquidity range. During a rebalance no tokens are swapped (except for within the active bin). A second rebalance is called as the active bin moves into the range of the opposing tokens, again distributing tokens evenly and bringing the vault ratio back towards a 50:50 ratio. This strategy of rebalancing avoids any direct swapping of tokens.
You can learn more about the Dynamic Range Strategy in the SteakHut Whitepaper.
The Liquidity Layer of Web3
SteakHut Liquidity introduces a novel decentralized liquidity management protocol that enables liquidity providers and tokenized protocols to optimize their capital on Trader Joe’s DEX V2: The Liquidity Book.
Our goal is to work with the best protocols across Web3 to unlock capital-efficient liquidity solutions. SteakHut Liquidity helps provide:
Active Liquidity: Traditional liquidity models spread capital thinly across an infinite price range. This results in liquidity deployed inefficiently, leading to lower efficiencies and lower swap rewards. SteakHut Liquidity uses concentrated AMMs and constantly rebalances liquidity to ensure capital is always active.
Sustainable Liquidity: The traditional approach to liquidity is a costly endeavor for protocols seeking liquidity. Protocols pay large amounts in token emissions and bribes to rent liqudity in a model that introduces inflation, high costs, and timely off-chain processes for liquidity seekers. SteakHut Liquidity can drastically reduce this cost by incentivizing concentrated ranges.
Capital-Efficient Liquidity: Procol-Owned-Liquidity is generally a very capital heavy approach for protocols. SteakHut allows protocols to unlock the highest capital-efficiencies across Web3, allow protocols to create deep liquidity for less capital. This helps free-up protocols treasury for more uses.
Simplified liquidity: Next-generation concentrated liquidity AMMs drastically improve upon the downfalls of traditional liquidity, however often at the cost of added complexity. Concentrated liquidity can make it difficult to manage and optimize liquidity. SteakHut completely automates the process and creates unique strategies tailored to each protocols needs.
Automate liquidity: Concentrated liquidity removes the set-and-forget liquidity options LPs have grown accustomed to. SteakHut completely automates this entire process, allowing protocols to focus on more important things.
Introducing the Colony Avalanche Index
Brought to you by Colony and Phuture, $CAI, the Colony Avalanche Index is the benchmark index for investors wanting to get exposure to the Avalanche ecosystem as a whole. $CAI provides a straightforward, hands-off passive investment strategy to invest in the Avalanche ecosystem through a single token.
- It is composed of the native token $AVAX and the most prominent projects in the ecosystem (Currently including $JOE, $sAVAX, and $QI).
- The index improves returns for investors by generating yield on the underlying assets, thanks to Yield Yak.
- The index assets are rigorously selected and weighted to spread the risk and volatility in proportion to their market capitalization.
Focusing on liquidity, token utility, and asset safety, $CAI will always represent the top assets on Avalanche and creates a quality index with their strategic token requirements. The index rebalances monthly- rotating in and out assets based on strategic requirements.
Users can invest in CAI through Colony’s platform and the Phuture app.
About SteakHut
SteakHut is creating “The Liquidity Layer of Web3”, a first-of-its-kind liquidity management platform aimed to keep DeFi Liquidity. We remove fragmentation, capital inefficiencies, and the barrier of entry to concentrated liquidity.
With SteakHut Liquidity, liquidity providers can deposit their tokens to enjoy automated and optimized liquidity on the Trader Joe V2 DEX. Once deposited our smart contracts rebalance and reinvest liquidity ensuring that your capital is always providing liquidity and earning fees.
SteakHut works with leading tokenized protocols across Web3 to help unlock maximum capital efficiency for their protocol-owned liquidity. By keeping liquidity active, SteakHut creates the most efficient capital efficient source of liquidity on Web3, and helps protocols reduce the need to incentivize liquidity.
We see liquidity providing as the central point of DeFi. Our goal is to shape the liquidity layer of Web3.
