On September 6, Colony Lab, the growth accelerator of the Avalanche ecosystem announced a partnership with Phuture, a decentralised crypto index platform to launch CAI (Colony Avalanche Index).
CAI is the first index token providing users with exposure to the Avalanche ecosystem. Moreover, it is an investment instrument to benefit from the development of the AVAX ecosystem, through just one token.
CAI is the token basket comprising AVAX and Avalanche applications, spread into various thematic segments such as GameFi, DeFi and others.
CEO of Colony Lab, Elie Le Rest said, “Index investing is the most convenient way to remove the noise and ride the trend and CAI provides the best way to get passive exposure to index investing if you firmly believe in the AVAX ecosystem. Individual projects might come and go, but the ecosystem stays – we will always take care to incorporate the most relevant popular assets with the help of CAI.”
CAI token is also yield-bearing due to its integration with the Yield Yak. It provides a safe and powerful method to compound the gains by deploying the assets of CAI, to gain additional yield benefits through aggregators.
Moreover, CAI is designed for investors who want to optimise their capital by being exposed in a calculated and productive way. In addition to successful GameFi projects such as DeFi Kingdoms, Avalanche is the third largest network based on TVL (total value locked), in spite of being a 22-month-old network.
CAI also provides all the benefits of index investing by rebalancing the top assets every month based on capitalization and liquidity to represent the dynamism of the Avalanche network. The rebalancing strategy guarantees that CAI remains allocated to best-performing assets.
Charles Storry, co-founder at Phuture said, “around 18% of the equity market in traditional finance resides in index funds. The same thing cannot be said about the crypto domain. The demand for passive instruments will increase as crypto adoption rises, which will assist the investors to gain risk-averse, easy-to-use and time-efficient admittance to the best-performing projects. CAI provides this to investors in the Avalanche ecosystem.”
Notingly, rebalancing and diversification ensure that the buyers won’t get affected by a fall in the price of one token due to some uncertain event. The unexpected yield uses the best of Avalanche’s yield protocols to develop returns for investors further.
One can acquire CAI by utilising AVAX and USDC on platforms such as Colony and Phuture Application.
A colony is a community-driven accelerator to boost the growth of the Avalanche network by evolving into DAO. On the other hand, Phuture (PHTR) is a decentralised crypto index platform, that provides theme-based investment on Avalanche and Ethereum networks.