APWine is live!
TL;DR:
- APWine is now live Ethereum Mainnet on Polygon🍾
- Several ways to leverage APWine, with novel and unique strategies
- Christmas Rewards Boost is live until 2022🎅
APWine is very excited to announce that they are now live on Mainnet and Polygon! APWine initiated future yield tokenization in the DeFi space more than a year ago, introducing the first futures on yield on its Beta platform earlier this year. Having developed and iterated for over a year, we are proud to present our V1, on which DeFi users can speculate on the volatility of yields generated by different protocols through 90-day futures pools. In addition to hedging risk on passive revenue, DeFi users can also expand their exposure without owning the underlying assets.
The contracts are verified and available publicly there, with a Immune Fi bounty available here.
Audits of smart contracts were conducted by a number of prominent actors in the space, including Peckshield, Quantstamp, BlockSec, Hashclock, as well as independent auditors.
The primitives enabled by APWine are multiple: by tokenizing the principal and yield, it opens the market of derivatives on interest rates, allowing various strategies of yield farming, yield delegation, and exposure management. Provide true fixed rates for liquidity providers, as well as advance paycheck mechanisms without liquidation. A key feature of the protocol is its ability to be modulated and incorporated into different protocols easily.
APWine is progressing towards becoming a permissionless and DAO governed protocol. The APWine community has successfully completed the first of many Winelistings to come which are pool creation events open to all projects interested in enabling their users to access a new class of assets based on yield derivatives as well as increasing the capital efficiency of their token. Winelistings require proposals to be made by teams, community members, DAO’s, etc on our governance forum and APWine stakeholders to express their interest on the governance portal. Winelistings occur every 30 days, with the next one scheduled for January 10th, 2022. An effective governance structure is essential to the success of any decentralized infrastructure, and the new year will be full of proposals and opportunities to decide on important directions for the project.
1) Hedging your risk
Say you have 10k USD, and you want passive income, but you don’t want to be exposed to the volatility of APYs: You can head over to app.apwine.com, and if there is any pool for that asset (i.e TrueFi) with a market APR that suits you, you can convert your funds to PT, and secure this APR in the discount of the PT price. There are no liquidations possible, at the end of the period, you will be able to redeem as much USDC as the PT that you bought
2) Getting your yield in advance
Now imagine that you are a liquidity provider on different pools, but you could use an advance paycheck on your strategy interests to cash out some funds or to use them somewhere else: head over to the pools list, tokenize your interest bearing token that represents your liquidity position, and receive PT and FYTs. You can now sell your FYTs on the AMM and earn that advance paycheck — cheers 🍷!
3) Get exposure on Yield
How would things be if you were on the other side? For example, if you’re a trader or an analyst and have reason to believe the yield generated by a specific liquidity position will increase drastically over the coming weeks: You can simply directly buy the FYTs that represent that yield, without exposure to the principal capital. Moreover, it becomes trivial to swap yield types: did you just discover another protocol listing new assets, and believe its yield will increase further? Just swap your current Yield tokens for those!
4) Buy locked discounted assets (the principals)
Interest rates are the price of liquidity, hence the reason why principal tokens which are locked during the period are discounted — even if at the end, their holders are always able to redeem 1 underlying token per principal. In other terms, uying discounted assets and waiting for the expiry is a very conservative and safer way of increasing the amount of tokens you own without being exposed to other types of volatility. Just buy and redeem at the end. Winemaking is that easy.
5) Provide liquidity to AMM pools
As any decentralized protocols in this peer-to-peer finance space, APWine needs its liquidity providers. They are the ones providing liquidity on the custom AMM, which mitigates IL (impermanent loss) due to the yield-bearing aspect of the assets while allowing anyone to trade tokenized derivatives. LPs generate revenue on swapping fees (0.25%) as well as incentives (APW emissions) provided by the protocol against their liquidity provision.
To bootstrap liquidity on those pools, a Christmas special, double rewards program is live from the 25th of December until the 1st of January !
4166 APW are allocated to each Mainnet pool, alongside 462 APW per Polygon pool ! The earned rewards will appear in the interface and be claimable retroactively during the first week of 2022, while the incentives program will be starting on-chain.
Next steps
In parallel to the bootstrapping of the protocol’s liquidity and in continuation of the first winelisting event, we will be focusing on the development of our community and governance as the new year begins! Our governance forum is live here and our discord is available there. We are looking forward to generating integration discussion and improvement proposals :wine:.
What you see today is just a first part of what will be ready by the next grape harvest, so keep an eye out for our first community call and follow the next announcement closely !
