Colony recently announced to commit up to $2 million to the upcoming CAI (Colony Avalanche Index.) With a mission to elevate the Avalanche ecosystem, Colony has prepared a four-step approach.
It starts with funding emerging or early-stage projects. The second stage is to run validator nodes (subnets or AVAX). The third step is to offer liquidity to running DeFi protocols. The final one is maintaining an index containing the top Avalanche projects via CAI.
Colony sees the Colony Avalanche Index as its ultimate project to gain access to the top Avalanche projects by market cap. The project will help investors to leverage market trends while earning additional returns via yield-generating protocols.
As a hands-off, simplistic, passive investment strategy, CAI can help countless investors worldwide. It caters to every portfolio desiring to capitalize on the upcoming Avalanche growth boost without the hassle of maintaining assets individually per the AVAX forecast. Such issues prevalently push users from investing in the industry.
Since CAI is about to launch, the $2 million commitment for its deployment will be critical. It will bootstrap the project’s total value locked while attracting liquidity. Its capital deployment strategy involves three pillars:
- Minting Colony Avalanche Index to bootstrap the total value locked
- Offering CLY to establish deeper liquidity
- Proposing liquidity in CAI and AVAX for minimal slippage
The project will gradually garner capital until the end of 2023. The $2 million commitment is simply the initial step of the process. Avalanche’s startling growth is attracting institutions and individual investors across the globe.
Thus, launching a value-rich project like CAI appears to be the best investment instrument to delight these investors. As a community-driven accelerator, Colony is gradually evolving into an inclusive DAO.
Powered by $CLY, it aims to boost Avalanche’s overall growth. That is why the venture announced CAI at the most crucial time for the Avalanche ecosystem.