APY Single-Sided Staking is Coming! (Safety-Stability Treasury & Boost-Locking)
Over the past couple of weeks, we’ve shared growing developments on increasing token utility through innovative tokenomics and protocol-owned liquidity. Tokenomics will offer APY token holders opportunities to earn rewards for performing various operational platform tasks, and in this case, staking the APY token.
Before we get started, we’d like to announce that Convex integrations for 7 Curve pools have been deployed, and are now increasing the total aggregate yield by over 50%. Check out the active strategies under the ‘Yield’ tab on the yield farming platform to view the updated yield distributions, and increased yield here: APY.Finance.
In this update, we aim to further outline, in more granular detail, the proposed specifications surrounding two tokenomics options that will become available. These options include single-sided staking through boost-locking for a boost to APY token liquidity mining rewards, and a safety-stability treasury to earn tokens as rewards, where funds will be used to cover shortfall events. We encourage users to check out the forum discussion threads, linked below, to share thoughts and feedback on each.
Safety-Stability Treasury Staking
Overview
Provide a single-sided staking option that can be used as an insurance pool to cover lost funds in a potential shortfall event.
Proposal
- 300–500k tokens per month for single-sided staking rewards.
- Single-sided staking rewards auto-compound.
- A cooldown period of 7–10 days before rewards can be withdrawn, with a 24-hour window to withdraw before re-staking.
- A cooldown period is required to effectively ensure funds are available to liquidate in the rare case a shortfall event occurs.
- A withdrawal window prior to staking is required to ensure the cooldown cannot be artificially shortened, leading to the possibility of an exploited instant withdrawal.
- Up to 30% of the pool can be liquidated to cover a shortfall event.
- APY staked into the safety-stability treasury can still be used to participate in governance proposal voting.
Share your comments and feedback on the proposal for safety-stability treasury staking in the discussion forum here.
Boost-Lock Staking
Overview
Provide a single-sided staking option that allows users to lock APY for X time period to gain a boost to their APY token liquidity mining rewards.
Proposal
- Lock APY tokens for 1 week, 1 month, 3months, 6 months, 1 year, or 4 years to receive vlAPY.
- The longer the lock duration chosen, the more vlAPY received, leading to a greater liquidity mining rewards boost.
- 4 year (maximum) lock receives the maximum 1:1 ratio of APY to vlAPY.
- Boost only applies to APY token yield, not base yield from strategies.
- Boost-locked APY (vlAPY) can still be used to vote in governance.
- Boost weight calculated with:
Share your comments and feedback on the proposal for boost-locking in the discussion forum here.
Hopefully, these proposal drafts offered greater insight and clarity into the upcoming single-sided staking tokenomics to be implemented. The goal is to offer APY token holders various options for single-sided staking pending which avenue of tokenomics they feel will offer the most value, while simultaneously contributing to operational efficiency and increasing platform decentralization. Share your thoughts and feedback on the governance discussion forum.
🎄 Happy Holidays, and happy yield-farming from the APY.Finance team. 🎄
