Colony to commit up to $2M in the upcoming Colony Avalanche Index, CAI
Empowering the Avalanche ecosystem in every way possible
Colony’s mission is to empower the Avalanche ecosystem in every way possible. To do so, Colony has strategized a four-pronged approach: early-stage projects funding, running validators nodes (AVAX / subnets), providing liquidity to existing DeFi protocols, and maintaining an index composed of the top Avalanche ecosystem projects, thanks to CAI.
Why CAI?
CAI is the Colony Avalanche Index. Colony sees it as the ultimate product to gain exposure to the most prominent Avalanche projects by market capitalization, via a single token. CAI will allow investors to ride market trends while capturing additional returns from yield-generating protocols.
CAI is a straightforward, hands-off, passive investment strategy. It appeals to any portfolio seeking to capture the next chapter of growth in the Avalanche ecosystem, while removing the complexity and hassle of managing assets individually, which often discourage investment in the space.
Colony’s capital deployment in CAI
With CAI’s launch just around the corner, we are thrilled to announce that Colony will deploy up to $2M to bootstrap CAI’s TVL and attract liquidity.
This capital deployment strategy includes 3 pillars:
- Minting CAI to bootstrap the TVL of the index.
- Incentives (in CLY) to build deeper liquidity.
- Providing liquidity in AVAX and CAI, minimizing slippage.
The capital will be gradually deployed until the end of the year. More information will be shared in the coming weeks.
What’s next?
This initial capital commitment is just the first step in our journey, already establishing CAI as the largest index on Avalanche.
The eye-popping growth of the Avalanche ecosystem is attracting large-scale investors, from individuals to institutions, seeking exposure to Avalanche’s top assets.
CAI is the best investment instrument these investors could ask for.
About Colony
Colony is a community driven accelerator, evolving into an inclusive DAO, to boost Avalanche’s ecosystem growth. Powered by a governance token: $CLY.
Colony deploys capital within Avalanche on early stages projects, provides liquidity to DeFi protocols, validates networks through stacking capabilities and will maintain an Index on top Avalanche projects. The true sustenance and value generated by Colony’s investments is routed back to the community through airdrops, a buyback mechanism, and staking rewards.
