APYSwap with Andriy Velykyy
APYSwap is a protocol for the decentralised exchange of shares of Tokenized Vaults. It achieves this through the creation of a Layer 2 blockchain where users can trustlessly swap accounts & assets from multiple Layer 1 blockchains. Including Ethereum, Polkadot and Binance Smart Chain.
Eric: Heya @AndriyV — Welcome to the AMA ROOM ! How are you today?
Andriy: Great. Thank you very much. Happy to be here to answer community questions
Eric: From where are you logging in tonight?
Andriy: From Kiev, Ukraine. It is 3pm here at the moment. My RnD office is here
Eric: Nice. So to start, can you tell us about your role at APYSWAP and some background of your career.
Andriy: I am the CEO and founder at APyswap
For the career — I have started as Cisco Engineer back into 2002, in 2006/2007 went to business school in UK, switched to business development after that, have been building data centers in different countries, in 2015 started to look into crypto, have been constructing mining facilities using my experience in data centers, have became a true crypto believer, have been working on multi chain non custodial wallet, integrating crypto payments into POS devices (NCR included), cyber security. In 2020 started working on APYSwap
Eric: Hardcore! What was your first crypto?
Andriy: BTC sold it 2015 after mined :( had some DOGE too. Let me check for ETH on my Polo acc
Eric: Haha. So what is APYSWAP?
Andriy: APYSwap is a protocol for the decentralised exchange of shares of Tokenized Vaults
What I am doing here is giving community a possibility to buy a share of the already created cross chain portfolio of DeFi assets in one click
Eric: For the sake of others, can u explain what are tokenized vaults
Andriy: Sure, logged to Polo acc by the way, to check, first ETH I have mined in 2016)
Eric: ETH Still there?
Andriy: Nope, sold it every month :(
I even have somewhere the photo of my first rig :)
Anyway — getting to the tokenized vaults. I am putting my own liquidity into variety of DeFi projects, researching them, etc and that made me think — if there is a question that someone can build a portfolio of DeFi assets and other person can buy a share of it. So to make that happen we created a concept of delegated ETH addresses, over those the control can be relinquished and transferred to user users including all the underlying liquidity
Funny to look at that now, after all these years
Eric: Intriguing. How does delegated eth addresses work exactly?
Andriy: You create an address, right now you can do it using our UI at the website + web browser plugin — we forked Metamask and changed it UI the way it can understand and interact with our smart contract. They you sign in to any DeFi service you want with that address selected, allocate liquidity. Next you tokenize the address, and after you do that you can send the part of that address to another user. If you want I can share a video demo. Probably would be easier to see from it. Also I will roll out a beta on ETH mainnet in March with more friendly interface that it is right now
Eric: Share a video pls
Andriy: Link of video: https://t.me/amaroom/55614
forwarded the msg from my CTO and co founder Yuriy
Eric: So how does APYSWAP let u buy shares of these tokenized vaults?
Andriy: Apyswap will let you trade the shares of those vaults. Let me explain a bit for the technological stack. From the very beginning we have considered building in on Chromia (Layer 2 marketplace for ETH — our partners), then because Yuriy (CTO) worked together with Solana core team we have been looking there, and finally we decided to look into Polkadot parachains. We will start by doing the platform on Moonbeam, where the ETH virtual machine will be up and running soon. And we will let users combine the representation of the assets that still will be anchored to the original blockchain they are coming from (ETH, Bsc, Huobi ECO etc)
You may also want to look at our medium articles that may be more explanatory in details. Such as the one here — https://apyswap.medium.com/deep-dive-product-matrix-of-apy-swap-2326c26f4c6b
Eric: So from a non vault creator perspective how does the flow look like?
How do i choose which tokenized vault to buy and how do i profit from it?
Andriy: You go to our marketplace, select the vault you are interested in and buy a share of it. My vision is that you just dont select one, but rather many of them eventually creating a portfolio of portfolios that is kinda cool in terms of diversification and benefiting from crowd intelligence
Eric: And how are they valued? Do these tokens get some % of the yield of the vaults at an interval?
Andriy: Sure they do, that is the whole point of holding the DeFi assets, right? Setting the value is a good question though. Let me explain on that one
1. There is free market where the seller is selecting the price to sell and the buyer decides whether this price is fair or not
2. Our platform itself would provide a valuation price for the portfolio based on the assets (whitelisted) inside of it
3. The buyer can ask a designated oracle within our platform to provide 3rd party opinion on the current vault. That is what I personally call “buying a used car example” — while the seller wants to sell you the car for the highest price possible, and you normally dont have an expertise to decide whether it is fair or not, you turn to the expert whom you pay to hear his opinion
Eric: Very cool piece of tech. How big is the team?
Andriy: 9 people at the moment, mostly devs
Q: I find APYSwap quite similar to existing DEXes like Uniswap and the likes, should we say that you are trying to compete with them or just an aggregator trying to compliment their work? I would be glad if you tell us how you guys differ from each other
Andriy: I would not call APYSwap a Uniswap competitor as we are not focusing on building trading pairs, but rather we encourage users to trade whole sets of portfolios with LP toknes (from Uniswap for example) included in them
Q: How do you solve the cost rates of Ethereum transaction fees soaring, users interacting with the yield farm and other Dapps? How do you reduce the cost?
Andriy: The marketplace is happening on L2, so that users dont have to lose their money over fees. The will ofc pay them when they add/withdraw the underlying liquidity but not for the trading process
Q: COMMUNITIES gives a project a strong base, what are your plans on -Global expansion and adoption with Apyswap- ? Will $APYS holders be allowed to partake in the governance of this project ?
Andriy: yes, I want the users to be involved in the whitelisting projects that are being traded on the platform. Thus they will have this skin in the game sort of feeling. The portfolio makers earn money from creating the portfolios, thus they are motivated to get the best performing projects possible, thus will vote to whitelist them using the tokens
Q: I love that this project is placing importance on the community aspect. It’s something that I think is lacking in a lot of projects. How can us early investors really help APYSWAP grow before it launches? From providing liquidity to general participation, what different roles are there when it goes live?
Andriy: Providing the liquidity would be a great starting point. I aim to launch ETH mainnet beta in March, with the possibility to create tokenized vaults, share them, lock the liquidity within them
Q: Why didn’t you think of integrating with BSC like Pancake Swap?
Andriy: We already did) And we will work on getting our users a unique possibility of creating a cross-chain portfolio of assets. BSC and Huobi ECO included
Q: On which types of Businesses & userbase, your project is mainly focusing on and which services are provided by to them? How Apyswap blockchain helps Businesses?
Andriy: Most of the businesses don't have time/expertise both in financial and tech to research, understand and select the appropriate portfolio of DeFi assets. That is the issue I am addressing.
Q: One use case of APYSwap token is to provide Insurance Pool. Can you tell about this pool please? How is it funded and in which cases is it used?
Andriy: My vision is that projects that want to be whitelisted on my platform should have skin in the game, to protect my fellow users, thus I am kindly asking them to buy and stake a portion of the tokens to be whitelisted. If the project does a rug pull scam then those tokens would be used as a compensation for the users, so their balances are not affected
Q: The idea of the APYSWAP project is really unique and incredible, how did this idea come about?
Andriy: I came up with the idea because I needed a project like that myself and I was not able to find one on the market. Yes, there are index funds, like Set protocol etc, but they do not allow users to have this level of freedom while building the portfolios thus today each of us has to do all the research and manage the portfolios, rebalancing of them included, reading through WP etc. What I am building here is a marketplace for already custom made portfolios consisting of various assests
Q: What networks can @apyswap use in buying and selling tokens, coins or IPO?
Andriy: for now we are focusing on ETH, BSC, Huobi ECO
Q: What are the advantages of Layer 2 assets? I don’t see you mention about privacy and security on website, how does the Apyswap ability to prevent attacks?
Andriy: I have a background in cybersecurity and for me it is of great importance. While I have some experienced members of my team already checking the smart contract, etc, I will also book an audit from market leading cyber security companies. Will also launch a bug bounty process too.
For the security I have replied above, for the L2 assets we need them for two things:
1. to be able to link in one portfolio assets from different blockchains
2. to enable users doing the tokenized share trading without paying those high fees for each transaction
Q: Explain your plans on global expansion,
Q1) is it only market you are focusing All the time?
Q2) Or you focus on building or developing and getting customers and users, or partnerships?
Andriy: I am focusing on global markets and building partnerships every day
Eric: That's a wrap for APYSWAP!.
Follow them here for more updates!
Andriy: Thank you very much for inviting. It was my pleasure to talk to you