How APY.Finance is Increasing Yield & Saving Gas Fees
Following the successful Alpha launch, we will be shifting the focus of these newsletters from developmental updates to platform updates, governance noticings, macro trends, product information, and more.
Total Gas Savings Since Platform Launch
One of APY.Finance’s core features is its ability to pool liquidity and batch deposits into many different strategies at once. As a result, users who deposit only need to pay a single gas fee to be exposed to all of the currently active strategies, greatly saving on gas fees as opposed to diversifying deposits into each one of the active strategies on their own. Depositing into each active strategy individually just once would cost the user between $500 — $1000 for entry, even before we take into consideration any additional rebalances that the platform’s autocompounding feature handles by collecting rewards and redistributing them into the pools automatically.
We are excited to share that, in just over a single week of operation, we’ve saved around $8,000 in gas fees for each user. In total, we’ve saved users a combined $7,336,492.00 in gas fees as opposed to yield farming in each of the currently active strategies individually. These gas savings will only increase as the number of farms we have in our portfolio continues to grow.
This feature has many benefits, including granting exposure to a more diversified range of strategies to users who have deposited smaller amounts. On the flipside, whales who have deposited larger amounts are able to achieve hands-off diversification, being exposed to many different strategies at once, instantly diversifying their portfolio, and adjusting risk.
Governance, Token Utility & Defi 2.0 Tokenomics
We’ve mentioned previously our plans for increasing liquidity depth, token utility, and diving into Defi 2.0 tokenomics in our post-launch roadmap. We’d like to expand on these concepts a bit and share our thoughts and progression on the next step of making APY.Finance a multi-faceted platform with all angles covered.
Increasing Yield, Token Economics
An advantage the platform framework we’ve built offers is the ability to increase yield by integrating new farms, which can be done rapidly via the “plug and play” system we’ve built, once new farms are passed through governance votes.
Currently, there are 5 farms up on the governance voting page, where $APY governance token holders can vote to integrate these new farms into the APY.Finance portfolio.
Increasing farm integrations, and thus, increasing yield and diversification, ties into our roadmap of how we plan to develop the platform:
Increasing yield by adding higher yield farms > building TVL and liquidity > increased opportunity for interesting token utility mechanics > increased platform awareness
The more yield the system is able to generate, the higher the TVL will rise, and the more token utility opportunities will arise as a result. The more these foundational efforts grow, the more the platform will be able to reach its potential and spread awareness to a wider array of users.
Increasing Liquidity Depth & Token Utility
As we continue to progressively increase focus on liquidity depth and token utility, we’d love to hear the community’s feedback on some ways the team has conceptualized this can be best achieved through our governance discussion forum. Joining the discussion and sharing your thoughts and feedback is critical for vetting viability, and achieving quicker progress toward achieving these goals.
Join the governance discussion here.
We are evaluating ways to increase $APY token utility in addition to its current powers of granting token holders the ability to participate in governance votes. A couple of methods we are currently considering are a stability treasury, where a portion of rewards issued to people will be used to form an emergency fund to cover a rare shortfall event. Additionally, we are evaluating the possibility of using our yield returns to purchase $APY tokens on the market, which would allow us to distribute all of our yield rewards in $APY tokens.
Our team is also investigating ways in which we can build the platform’s liquidity depth and researching how to best automate liquidity provision on Uniswap v3 for greater capital efficiency for stakers. We are currently in talks with Gelato to investigate their G-Uni protocol, and to learn more about the viability of how their protocol handles things like impermanent loss.
Further, we are evaluating the bonding market mechanics presented by projects such as Olympus Pro. Using G-Uni’s LP tokens with a bonding market mechanism will fractionalize the ownership of a single managed position on Uniswap. This incentivizes market makers who are providing value while allowing the protocol to gain control of this liquidity.
Stabilizing Yield Returns for Individual Users
Since platform launch, we’ve seen a fair amount of fluctuation between the yield of the individual strategies that are a part of the overall APY.Finance strategy portfolio. Despite this, the overall platform yield remained relatively consistent as a result of the diversification of liquidity to many strategies at once. This creates more long-term yield return predictability, which will open the door to the possibility of more long-term token utility mechanics.
As yield continues to increase, and the platform continues to demonstrate its stability over time, APY.Finance will continue to cement itself as a platform where users can securely park their deposits into stables long-term despite market volatility.
Stay Up-To-Date
Follow us across our social channels to keep up to date with news and announcements.
- Join our Telegram
- Follow our Twitter
- Join our Discord
- Visit our Website
- Sign-up for our Newsletter
