🤑 vlCXD holders can now earn stablecoins from FEE DISTRIBUTIONS!
✔️ The first distribution, claimable tomorrow, will result in an average 64% APR, distributed entirely in stables!
➡️ Learn more: https://medium.com/cortexdao/earn-stablecoins-with-vlcxd-fee-distributions-f9ea5bbc7d66
📣 The CortexDAO (CXD) Airdrop is now LIVE!
Users can head over to the CortexDAO airdrop page to claim any eligible CXD now.
Learn more: https://medium.com/cortexdao/cortexdao-token-cxd-airdrop-is-live-3c64d6439273
📢 The CXD airdrop for APY holders, boost-lockers and liquidity providers is imminent.
The https://cortexdao.io/ airdrop page will walk you through the entire process of the airdrop once live.
Some things you should know:
1. Boost-lockers will receive up to 50% additional, unlocked CXD. A 50% bonus is awarded assuming they’ve boost-locked their entire APY balance for the maximum, 4-year duration.
I.E. A 50% bonus assumes a user is boost-locking their entire APY balance for the max boost (4 years). A 25% bonus assumes a user is boost-locking their entire APY balance for half of the max boost (2 years). A 12.5% bonus assumes a user is boost-locking their entire APY balance for 1 year.
2. Liquidity will be shifted from the APY Uni and Bal LP pools into a CXD Curve2 LP pool.
For the duration of the airdrop, while APY in the liquidity pools is frozen, trading APY may result in very large amounts of slippage.
WAGMI
🚨 IMPORTANT: Prior to the airdrop releasing tomorrow, liquidity will be shifted from the APY Uniswap and Balancer LP pools into a CXD Curve2 LP pool.
As a result, trading APY once liquidity transitions may result in very large amounts of slippage.
Cortex DAO Token (CXD) Airdrop!
A major milestone of the 2022 roadmap is DAOification through the launch of the new Cortex DAO which will govern the upcoming Convex Index.
The Cortex DAO will be governed through the CXD token which will be airdropped to APY token holders, liquidity providers, and boost-lockers.
Joining the Cortex DAO will present prominent benefits to DAO members, including:
- Vote on DAO proposals to adjust emission rates, change the supply cap, deploy DAO treasury, and more.
- Boost CXD rewards from the Convex Index.
- Earn profit-share from platform revenue.
CXD Tokenomics
- 1 APY will allow a user to claim ~2.7 CXD.
- The max supply of CXD is 271,828,182.
Math nerds may recognize this number as e x 10⁸, or Euler’s number, the mathematical constant behind compounding interest.
New CXD/ETH Pool2
Users will be able to buy and sell CDX from a new Curve V2 pool, created using CXD/ETH pairs. This pool offers lower slippage for CDX buyers and sellers.
New Rewards for Liquidity Providers
Those providing liquidity into the new CXD/ETH Curve V2 pool will receive CXD rewards. Rewards are issued with a liquidity gauge, keeping the doors open to earn additional CRV and CVX rewards in the future.
CXD Token Airdrop Details
- The CXD airdrop will run for a limited time, announced at a later date.
- Those eligible to claim the CXD airdrop will be directed to a Convex DAO airdrop page which will walk through the entire process of claiming eligible CXD.
- There will not be a snapshot to determine your airdropped amount.
- Once a user claims CXD, their APY balance will be frozen until the airdrop concludes.
- Users will continue to be able to purchase additional APY tokens and claim airdropped CXD throughout the entirety of the airdrop’s availability.
Eligible CXD Airdrop Participants
APY Uniswap & Balancer Liquidity Providers
The airdrop page will walk liquidity providers through every step of unwinding their current positions, claiming the airdrop, and providing liquidity with CXD in the new Curve V2 pool.
APY Boost-Lockers
The airdrop page will walk boost-lockers through the process of claiming CXD, locked for the same duration as their currently existing APY boost-lock.
APY Token Holders
The airdrop page will walk all other APY holders through the process of claiming unlocked CXD.
CXD Airdrop for Unvested Rewards
Currently, the majority (~95%) of users have just 3,500 APY or less vesting. These vesting APY will become unlocked, claimable, and, once claimed, count toward CXD airdrop eligibility.
Users with more than 3,500 APY vesting will be transferred a monthly CXD airdrop for the duration of their vesting period. Users with unvested rewards will not be eligible to claim additional airdropped rewards for this APY once it becomes vested and claimable.
⚡️ The UI has been updated to provide more detailed and transparent insight into currently active Curve and Convex positions, and underlying sources of return.
https://dashboard.apy.finance/dashboard/portfolio
👾 The Convex Index 2022 Roadmap 👾
Phase 0: Foundation [Complete]
Phase 0 set the foundation for the DAO and the launch of The Convex Index.
The recent implementation of the ‘Fee Restructure’, where a portion of platform fees are deposited into the DAO, sets the groundwork for the DAO. The release of the Convex Index Litepaper begins to shape the new narrative and educate about the product in preparation for launch.
Phase I: Release
The DAO and Convex Index will be launched.
Moving to a DAO structure allows us to pursue new opportunities that wouldn’t be accessible as a traditional company. DAO members will be able to utilize the DAO treasury to operate the Convex Index platform in a decentralized manner. The Convex Index, built upon foundational elements of the already existing APY.Finance platform, will be launched, setting the precedent for the next generation of DeFi.
Phase II: Upgrade
A wrapped Index token will be released.
By simply purchasing the Index token, users can instantly gain exposure to the Index, greatly reducing complexity and cost. A proposal for profit-sharing with DAO members will be released, a benefit to DAO members made accessible only through the creation of the DAO.
Phase III: Scale
The Convex Index token will be bridged to other networks, and new indexes will be developed.
One of the most exciting opportunities The Convex Index presents is scaling through cross-chain expansion. Following The Convex Index, new and innovative indexes will be developed to target various demographics, including investors trying to build a robust and diversified portfolio. This can include cutting-edge indexes based on emerging trends such as option vaults, bribery vaults, and more.
👾 APY.Finance to Launch First Convex Index 👾
APY.Finance is launching the next layer in the Curve ecosystem: the Convex Index.
This index, the first of its kind, is a risk-optimized basket of screened Convex positions that users can gain exposure to with the purchase of a single token.
The index will be managed by a new DAO and will open the door to additional benefits such as profit-share for boost-lockers.
Major Growth Potential and Improved Performance on the Curve Ecosystem
Our research demonstrates the growing need for a product such as The Convex Index, and the major growth upside potential within the market.
The Convex Index is built upon the growing Curve ecosystem, which currently encompasses 15% of DeFi’s TVL. Many of APY.Finance’s largest depositors have continued to leverage the platform to gain secure, stable, and diversified Convex exposure.
Curve positions improve risk-adjusted portfolio performance.
Adding Curve positions improves the risk-adjusted performance of a variety of portfolios, ranging from a traditional stock and bond portfolio to crypto-concentrated mixes. The Convex Index is optimized to enhance the characteristics that make this possible, such as low overall volatility and reduced correlation to equity markets, government bonds, and crypto mainstays such as Bitcoin and Ethereum. This makes the Index an ideal component for institutional portfolios requiring new forms of diversification.
Cross-chain Convex Exposure with an Index Token
Following the launch of the Convex Index, a wrapped index token will be released, allowing users to gain index exposure by simply purchasing the token.
Currently, the Curve ecosystem exists primarily on Ethereum Mainnet. Its existence on other chains pales in comparison and completely lacks the advantages that a Convex boost provides. The wrapped Convex Index token, cross-chain, will unlock capital currently unavailable on mainnet, broadening the horizons of the full Curve ecosystem to different chains, and granting exposure to a wide new audience. Further, the index token greatly simplifies the complicated and costly process of depositing into, and withdrawing from, any single Convex position.
Convex Index Litepaper
Visit The Convex Index Litepaper to learn more about the Convex Index, its mechanics, use-cases, wrapped Index token, and more.
📣 Introducing: APY ASTROS, The First Exclusive APY.Finance NFT Drop.
Learn more: https://medium.com/apyfinance/apy-astros-the-first-exclusive-apy-finance-nft-drop-is-here-97345e907948
Check if you're eligible for an APY ASTRO NFT here: https://astros.apy.finance/#/
Attention $APY holders! A new governance proposal for integrating the Convex-ust-wormhole pool is now live.:zap:
Join the Discussion: https://forum.apy.finance/t/convex-ust-wormhole/196
Vote now: https://snapshotpage.b-cdn.net/#/apy.eth/proposal/0x6c90f2c6d740acc122d85a740a6923c18ae3b1b4d5d03c921b11b2a9dcff126b
📢 Last chance! Boost-lock 500 $APY for 4 years by Friday, 2/25/22 to receive an exclusive APY.Finance NFT as part of an upcoming drop!
59 Boost-lockers have already earned their APY Astro NFT.
Boost-lock now: https://dashboard.apy.finance/boost-lock
📢 A governance proposal for simplifying liquidity mining rewards emissions has passed, and emissions have been effectively reduced as a result.
https://snapshot.org/#/apy.eth/proposal/0x4248d33a7a9cc59d990325e3260e86db6eae7364a9d64049918ae8ec66eea35a
Attention $APY holders! A new governance proposal for enabling small platform fees toward protocol-owaned liquidity is live.⚡️
Join the Discussion: https://forum.apy.finance/t/fee-restructure-governance-proposal/163
Vote here: https://snapshot.org/#/apy.eth/proposal/0x0ec08cd2aef7bc4a2b67c6ab68df776853e888a4dbcc245f22436272f4558f77
Rewards emissions simplification proposal is now live!
Vote now: https://snapshot.org/#/apy.eth/proposal/0x4248d33a7a9cc59d990325e3260e86db6eae7364a9d64049918ae8ec66eea35a
📣 A proposal to simplify emitted rewards and remove the 6-month vesting period on newly earned $APY rewards is live.
Join the discussion: https://forum.apy.finance/t/emissions-simplification/160
Vote now: https://snapshot.org/#/apy.eth/proposal/0x4248d33a7a9cc59d990325e3260e86db6eae7364a9d64049918ae8ec66eea35a
Boost-Lock $APY to Supercharge Your Yield! NEW TOKEN UTILITY ⚡️
We are very excited to announce that boost-locking is officially live! $APY token holders can now head over to the boost-lock page via the APY.Finance dashboard to lock their held $APY tokens and begin earning boosted yield rewards.
Boost-locking is a token utility designed to reward users who have explicitly demonstrated a long-term commitment to the vision of APY.Finance by locking their $APY tokens in exchange for boosted rewards.
Further, we are excited to announce that the first 100 users who boost-lock at least 500 $APY tokens for 4-years will be eligible to mint an exclusive, randomized, APY.Finance NFT. Eligible boost-lockers will be able to mint their NFTs as part of an upcoming APY ASTRO NFT drop.
⚡️ Begin boost-locking now! ⚡️
How to Boost-Lock
1. Head over to the APY.Finance boost-lock dashboard.
2. Under the ‘Lock’ section, select your lock amount and duration.
3. Receive your ‘boost’.
How To Earn Boosted Yield Rewards From Boost-Locking
In order to begin earning boosted yield rewards as a result of boost-locking, users must first boost-lock $APY and begin earning boost.
Once $APY is boost-locked, and a boost is earned, a user will need to deposit, or have already deposited, stablecoins on the core APY.Finance yield farming platform accessed via the ‘yield’ tab on the dashboard. Boosted yield is then rewarded in the form of additional $APY tokens over time, in addition to stablecoin yield earnings.
For more information, please refer to our boost-locking FAQ.
We appreciate those who boost-lock $APY, demonstrating a commitment to the long-term vision and success of APY.Finance. Enjoy your boosted yield! 🚀
PS: Credit to community member @ghostmeme for the title. ⚡️
Boost-locking will be made live shortly! Keep an eye on our announcements channel for more detailed information on how to participate in boost-locking once it is live. A new Boost-Locking FAQ has been added to the announcements channel. 🚀🔓
🚀🔓 Boost-Locking FAQ 🚀🔓
Q: What is boost-locking?
A: Boost-locking allows $APY token holders to lock owned $APY for set durations to earn boosted yield.
Q: How is my boosted yield determined?
A: Your amount of boosted yield earned is determined by your lock-score percentage relative to the sum of all users’ lock-scores.
Use a copy of this calculator to dynamically calculate boosted yield (created by community member @awinter).
Q: Can I earn rewards for boost-locking if I do not yield farm?
A: No. At the moment, boost-locking only impacts liquidity mining rewards. In the future, there may be additional incentives provided to those who boost-lock.
Q: Does boosted yield apply to stablecoin and $APY yield earned?
A: No, boosted yield only applies to $APY rewards earned from yield farming. .
Q: How long can I boost-lock for?
A: Users can boost-lock any amount of $APY for up to 4 years in weekly increments.
Q: Can I withdraw my locked $APY before it unlocks?
A: No. You can not withdraw $APY before it unlocks.
Q: When do boost-locked tokens unlock?
A: APY tokens unlock on the date selected by the user upon locking. Unlocks have a weekly epoch of Thursday. I.E. tokens locked will always be unlocked on the Thursday nearest to the unlock date (rounded down).
Q: Can I withdraw my locked $APY before it unlocks?
A: No. You can not withdraw $APY before it unlocks.
Q: Will my lock-score change over time?
A: Yes, your lock-score decays as the unlock time approaches. Users will be able to increase locked amount and extend unlock time before the lock expires.
Q: Can I boost-lock $APY tokens that are earned but not yet claimable (I.E. earned, but not yet vested $APY?)
A: No. Currently, you can only lock owned $APY that is already in your wallet.
Q: If I already have stablecoins deposited in the platform, do I need to deposit more in order to begin earning boosted yield?
A: No. Boost will apply to already existing deposits but you must lock APY.
Q: Why hasn’t my unlocked $APY returned to my wallet?
A: Once your $APY unlocks, you need to manually withdraw unlocked $APY from the boost-lock page.
Q: My lock duration expired. Why can I no longer extend my lock?
A: Users can only extend the unlock time of locked $APY before it unlocks. Once it unlocks, users must withdraw before creating a new boost-lock.
——-
Q: What is boost?
A: Boost shows a user’s position in a possible range of lock-scores given your account value and blAPY balance. The minimum boost is 1 and the maximum is 2.5
Q: What is blAPY?
A: A tokenized measure of user commitment. You get more blAPY for a longer time-lock or more APY locked. blAPY is non-transferable but is used in reward calculations to issue rewards every week.
blAPY balance = locked APY amount * (time to lock expiry / max lock duration)
Examples:
100 APY deposited for 1 year → 100 * (1 year / 4 years) = 25 blAPY
200 APY deposited for 6 months –> 200 * (0.5 year / 4 years) = 25 blAPY
100 APY deposited for 4 years → 100 * (4 years / 4 years) = 100 blAPY
Note that a smaller locked amount can be compensated for by a larger lock duration and a smaller lock duration can be compensated for by a larger locked amount.
Q: What is lock-score?
A: A user’s lock-score is a weighted average of a user’s deposit value and portion of TVL as determined by blAPY balance and total supply. The score is capped to benefit smaller holders.
Uncapped score = 0.4 * deposit value + 0.6 * TVL * (blAPY balance / blAPY total supply)
Lock-score = min(uncapped score, deposit value)
Note: The minimal possible score is 40% of deposit value. Capping the score at deposit value means the score can only be at most 2.5x the minimum score.
Q: Where can I learn more about boost-locking?
A: You can learn more about boost-locking, including insight into the escrow contract and specific formulas used to calculate boost-locking in our boost-locking spec here.
Boost-Locking Token Utility Release Date 🚀🔓
We are excited to announce the upcoming release of boost-locking, a token utility mechanic that will allow users to lock $APY tokens for set durations in exchange for boosted yield.
Boost-locking offers opportunities for $APY token holders to earn additional liquidity mining rewards through yield farming, allocating more rewards to those most aligned with the long-term vision of APY.Finance. Boost-locking is the first new $APY token utility addition, improving its utility above and beyond governance voting features.
Following boost-locking, a governance proposal for simplifying $APY token emissions and removing the vesting of $APY rewards will be made live. This will ensure a long-term horizon of available $APY rewards for boost-lockers.
Boost-locking will be live on the APY.Finance dashboard for $APY token holders to begin boost-locking on Thursday, 2/10/22, 8:00 pm UTC / 3:00pm EST. But wait, there’s more!
The first 100 users to boost-lock a minimum of 500 APY tokens for a 4-year lockup period will be granted a unique and exclusive NFT as part of a limited APY.Finance NFT drop that is currently under development. Act fast!
We’re excited for the community to have an opportunity to utilize their held $APY tokens in a new and exciting way, earning additional rewards while doing so.
Stay connected for more details on APY.Finance’s newest token utility, boost-locking, and how to participate, tomorrow, 2/10/22. 🚀🔓
📢 The APY.Finance team is keeping a close eye on collateral and liquidations for MIM and the integrated Convex-MIM strategy.
We will continue to evaluate the situation very closely and determine appropriate actions as necessary.
👾 Revamping APY.Finance Weekly Updates 👾
Over the past year, we’ve shared detailed weekly updates showcasing thorough insight into the technical inner-workings and details of project developments. While we’ve found this level of communication to be mission-critical preceding the much anticipated Alpha launch, we will be pivoting away from such an in-depth update process.
Transparency through frequent communication and keeping the community up-to-date are as important as ever, and we do not plan on stopping. We will continue to frequently update the community on progress, in a more lightweight form, which will continue to be shared across our social and community platforms such as Discord and Telegram. Users can still expect thorough announcements regarding key developments and product releases across all distribution channels, including Medium and our email Newsletter.
Ultimately, this decision allows us to ensure we can continuously update the community with news and developments while allocating bandwidth to more impactful marketing initiatives.
What’s Next For APY.Finance?
In the light of keeping the community informed, it can be easy to lose sight of the big picture of current developments in motion. Here’s a peak of just some of what’s to come in the near-future:
1. Increased token utility:
- Boost-locking for earning additional APY yield.
- Single-sided staking in the form of a safety-stability treasury.
2. New farms to increase diversification and yield.
3. Additional awareness campaigns to increase platform awareness and adoption.
4. Major overhaul of our branding, messaging, and landing pages.
5. A few things we're working on behind the scenes that we can't share yet. 🤫
The APY.Finance team is committed to the long-term vision of the project and building upon the foundation of the platform. We’re certain that with incremental progression we can make APY.Finance shine for years to come, and we greatly appreciate your continued support along the way. 👊
👾 Adding New Farms & Increasing Yield - APY.Finance 👾
One of APY.Finance’s main goals for 2022 is to increase yield returns and diversification by adding new farms. In order to stay on the cutting edge of new, and innovative farms, APY.Finance has onboarded a DeFi Researcher who specializes in researching, and vetting, farms that may be added to APY.Finance.
In this article, we aim to share insight into the types of farms that are being evaluated, the current process for vetting if farms may be a fit for integration, and how the APY.Finance can participate in this process, aiding the DeFi Researcher in finding and evaluating new farms to integrate.
Users can suggest new farms to evaluate for integration by using this form.
Why Add New Farms?
APY.Finance is a yield farming aggregator that batches user deposits and distributes aggregated deposits into different farms simultaneously. This results in near-instant portfolio diversification, greatly reducing financial risk in the case that any single farm is exploited.
The current strategy portfolio has 11 integrated farms, and more on the way. Along with an increase in diversification, adding new farms will create opportunities to add higher yield, higher-risk farms over time. This grants the benefits of being exposed to higher yield, while still hedging against potential shortfall risk.
Although this strategy may not be the quickest way to instantly achieve degen-level yields, it is one of the most secure and safest ways to ensure you can gain exposure to increasing yield returns without being exposed to the often associated risk.
Types of Farms Being Evaluated
We are currently evaluating many different types of farms for potential integration. Ultimately, the more vetted farms we can include, the more diversified the strategy portfolio can become. This will also grant access to higher yields, as more liquidity can be deployed to higher-yield farms.
Some of the types of farms currently being evaluated include:
1. Farms on Ethereum.
This has been the bread-and-butter for APY.Finance, including the Curve pools which provides safe and secure, low-risk yield. Often, these farms allow ease-of-access to liquidity with little friction or lockup. These farms help lay a foundation for future farm integrations, providing an extremely low-risk approach to the active strategy portfolio. We’re evaluating these farms closely.
Some examples of farms we are evaluating in this category include:
- Orion.Money (Suggested by Telegram community member Gabriel T (Telegram))
- Harvest.Finance (Suggested by Discord community member @snowwit243)
2. Farms on Ethereum that are using pools which require stablecoins aside from USD-based stablecoins for deposits.
Expanding to these farms may open doors to new and innovative opportunities, as well as increase strategy diversification. On the flipside, these farms may result in impermanent loss when converting stablecoins. As a result, we’re currently keeping an eye on these types of farms, although they are not the highest priority.
Some examples of farms we are evaluating in this category include:
- Bancor
- PAR / USDC
- EURT (suggested by community members Timon and Joxes)
- DFX Finance (suggested by Community Manager disco_ad. Special shoutout for the thorough governance proposal thread)
3. Cross-chain solutions.
There are many farms outside of Ethereum worth evaluating that would have countless benefits, including greatly reduced gas fees. This greatly reduces onboarding costs and thus accessibility for users who are depositing smaller amounts into the platform. This may greatly reduce friction when onboarding new users, and introduce a whole new market-share to APY.Finance.
Some examples of farms we are evaluating in this category include:
- Beethovenx.io on Fantom (suggested by community member 0xWives)
- Anchor on TerraLuna
- SushiSwap & Hundred.Finance on Harmony One
- TraderJoe & Pangolin on Avalanche
4. Complex farms.
These are farms which may have special characteristics to gain exposure to, or make withdrawals from. These are often farms which require liquidity to be locked for certain periods of time. This point of friction, with capital that is not as liquid, may cause complexities and not allow APY.Finance users to deposit and withdraw as seamlessly as intended.
Despite these potential downsides, there may be ways we can create workarounds to gain access to these farms in the future. As a result, we are keeping an eye on these farms, although they are not high priority.
An example of a farm we are evaluating in this category includes:
- Ribbon.Finance (suggested by Telegram community member Cryptollo (Telegram)).
Vetting Process
Although APY.Finance inherently hedges against risks of farms that experience any sort of shortfall event through diversification, due diligence is still required when evaluating new farms.
1. Yields. There is no defined minimum yield returns we require to vet farms for APY.Finance. As a yield aggregator, the more secure farms that are integrated, the better. As yield fluctuates between integrated farms, capital can be allocated accordingly to farms with more yield in the future.
2. Risk. Is this a secure and vetted strategy? Are they audited? How long do depositors typically deposit? Is this a long-standing and secure platform? Is there regular communication from the development team? Etc.
3. Viability. Is it a good fit for APY.Finance? Is there anything that may cause friction, including available liquidity?
Suggest New Farms
We hope this article provides insight into how we seek and vet new farms, as well as the types of farms we may eventually integrate.
We greatly appreciate users who have suggested farms in the past, and highly encourage any users to suggest a farm they feel may be a good fit for APY.Finance.
Users can suggest new farms by heading over to our ‘Add Farm’ suggestion form. The greater detail in which users can provide when suggesting new farms will greatly aid the farm vetting process. The farm suggestions here will be forward and evaluated by the DeFi Researcher and rest of the team.
🚀 Onward and upward with new farms and increased yield returns! 🚀
👾 The next phase of $APY token utility is underway. Stay tuned for more information as the boost-locking integration progresses.
✅ Boost-locking governance proposal = passed.
https://snapshotpage.b-cdn.net/#/apy.eth/proposal/0xcdd797b6434e844932a6993f7b98516612192ddf26ccbd17c0fdd22a85d68c1a
✅ Boost-locking smart contract = live.
https://etherscan.io/address/0xdc9eff7bb202fd60de3f049c7ec1efb08006261f
👾 APY Tokenomics - Emissions, Distribution & Utility 👾
What is the APY Token?
Since its inception, the APY token has been conceptualized as a governance token, offering great power to token holders within the community. APY.Finance is more committed than ever to the long-term success of this mission, while further increasing the usefulness, and incentive to hold, the APY token through incentivizing with various token utility and lockup mechanics that greatly reward users for doing so. The ultimate goal is to divert tokens, token incentives, and power through governance, away from short-term holders, and more heavily toward those aligned with this long-term vision.
Today, we will provide an update on how this is being achieved, including the current and future states of APY.Finance tokenomics, including APY distribution, emissions, governance, and utility.
APY Distribution
- Total Tokens: 100mm
- Public Liquidity Mining Rewards: 31.2%
- Community Initiatives: 12.3%
- Team & Advisors (vested): 20.0%
- Seed Round (vested): 20.0%
- Strategic Investors (vested): 16.5%
APY Token Emissions
While the APY token distribution amount hasn’t changed since the original release of the token, we’d like to provide an update on the current state of APY token emissions schedule. As the seed round & strategic investor portion of tokens have all been distributed; we are now emitting less tokens monthly than ever before.
Seed Round & Strategic Investors.
A portion of the APY token distribution (36.5%) has been allocated and distributed to seed and strategic investors, vested on a 1-year vesting schedule, starting on 11/9/20.
Between 11/9/20 - 11/9/21, a total of 2.8mm APY Tokens were being emitted toward investors monthly. As of 11/9/21, the investor token distributions have been completed, and we are no longer emitting tokens toward those incentives; greatly reducing the overall monthly token emissions.
Public Liquidity Mining Rewards
A portion of the APY token distribution (31.2%) is allocated toward public liquidity mining rewards. Currently, 1.18m tokens total are being emitted monthly; originally to aid in bootstrapping platform growth, and rewarding early believers of the platform. As new token utility mechanics such as boost-locking, described later, are implemented, a larger share of these liquidity mining rewards will be allocated to those most aligned with the long-term vision of APY.Finance, without any additional tokens being emitted.
Currently, these liquidity mining rewards are earned in the form of APY rewards, from yield farming with deposited stablecoins on the main platform, or participation in Uniswap / Balancer liquidity provision.
- Liquidity mining rewards; APY rewards for yield farming on the platform with stablecoins are emitted at a fixed rate of 900,000 APY/month.
- Liquidity provision rewards for participating in the Uniswap or Balancer LP pools are emitted at a fixed rate of 280,000 APY/month.
Community Initiatives
A portion of the APY token distribution (12.3%) is allocated toward various community initiatives we can use to continue to bootstrap sustainable and long-term growth of the platform, and various mechanics. These tokens aren’t emitted at a fixed rate, and can be used as necessary.
Team & Advisors
A portion of the APY token distribution (20%) is allocated toward APY.Finance team members and advisors. These tokens are vested with a 1-year cliff followed by a 3-year linear vesting schedule. These tokens aren’t emitted at a fixed monthly rate, depending on each team member’s individual vesting schedule, and will continue to fluctuate as the team scales.
APY Token Utility
Our mission with increasing token utility is simple: to provide rewards for users actively participating, and adding value to, various elements of platform operation. Token utility offers new and exciting reasons for APY token holders to accumulate, hold and use their APY tokens past just that of providing liquidity in Balancer and Uniswap pools. Additionally, these new, innovative token utilities, will provide methods of capturing larger amounts of APY, all while emitting fewer tokens than ever before.
Governance
First and foremost, the APY token is a governance token. Phase 1 of governance has now been integrated, and APY token holders (and those currently using APY tokens to provide liquidity) are now able to vote on proposals created by the APY.Finance team. Proposals are often a direct result of feedback and discussions shared in the governance discussion forum from members within the community.
As APY.Finance continues along with its roadmap of decentralization, greater power will be unlocked for APY token holders participating in governance. In the future, APY governance token holders will be able to participate in protocol governance even more directly by creating proposals, and further decentralization will open the doors for the possibilities of larger and more innovative token and protocol mechanics.
Boost-Locking
Boost-locking is a feature currently being voted on through a governance proposal that will allow APY token holders to lock owned APY tokens for set durations in exchange for blAPY. A user’s blAPY balance may grant access to incentives such as larger shares of APY rewards when yield farming on the platform. These rewards are emitted as part of the already existing liquidity mining program token distribution, and as a result, this will not affect emissions schedule, nor circulating supply.
Additionally, a user’s blAPY balance may grant other benefits such as additional voting weight in the future, and more, in the future. This is one method of diverting more APY away from short-term holders, and toward those more aligned with the long-term vision of APY.Finance, while rewarding those supporters in the process.
Learn more about boost-locking here.
Safety-Stability Treasury
Following the successful integration of boost-locking mechanics and Olympus Pro’s bonding market mechanics, APY.Finance will host a governance proposal for the implementation of a safety-stability treasury.
A safety-stability treasury will offer APY token holders an opportunity to participate in single-sided staking; staking their APY tokens into a safety-stability treasury that may have a portion (up to 30%) liquidated to cover a rare shortfall event of the platform, or any individual strategy. Stakers will receive rewards for participating in single-sided staking into the safety-stability treasury.
Read more about the safety-stability treasury here.
Platform Management
Further down the line, APY.Finance will propose platform management token utility functions. This means APY token holders will be able to stake tokens temporarily in order to grant access to various platform management functions, and earn rewards for doing so. Larger, more complex, or riskier operations will require a greater token stake, and offer more rewards in turn, while more lightweight, day-to-day functions will require less tokens staked, and not as many.
This decentralizes platform management away from the APY.Finance team and in the hands of the greater community. This increased decentralized control of the platform further enables more community-created, and more innovative, governance proposals.
Acquiring the APY Token
Currently, in order to Acquire the APY token to participate in protocol governance and other token utility features, users can connect their wallet and trade for the token on the Ethereum network via Balancer or Uniswap.
Alternatively, users can import the token address via MetaMask wallet and trade for the token there as well.
APY token contract address: 0x95a4492F028aa1fd432Ea71146b433E7B4446611
APY.Finance is currently exploring other solutions for ways to purchase the token with fewer gas fees. While we don’t have any specific solutions to share more information about at this time, keep an eye on our announcements and social channels in case of any news or announcements in the future.
Wrap-Up
We hope this was an insightful look into the long-term vision of APY tokenomics, and the plan for increasing the utility of the APY tokens. We appreciate your continued support, and hope you’re as excited as we are for the implementation of various token utility initiatives where token holders will be able to put their APY holdings to great use!