APYSwap allows users on multiple blockchains to create and control their native blockchain vaults, and transfer “control” to third parties for passive income.
Written by: Raydius Research
Decentralized finance (DeFi) introduces a variety of new features and changes the way cryptocurrency users interact with the protocol. The most important point is to concentrate asset ownership to users rather than intermediaries. However, with the continuous development of the DeFi ecosystem, more and more problems and challenges have gradually surfaced. One of them is the complexity of the ecosystem. At present, an ordinary DeFi user needs to master all aspects of knowledge, including how to link transactions with various fund pools, the rules of liquidity mining in each pool, and how to reduce free losses.
In addition, the dazzling array of DeFi projects on the market may make it difficult for many users to distinguish between them and make it more difficult to assess their potential risks and rewards. If users want to maximize profits, they need to spend enough energy and time to keep an eye on different portfolios. Not only that, but Ethereum also has a significant increase in transaction costs, making the cost of ordinary users participating in mining or interacting with other dApps significantly increased.
APYSwap provides its unique solutions to these problems. As a decentralized cross-chain exchange gun pool tokenization protocol, it implements the commission function of user assets and provides a market for financial asset transactions. APYSwap allows users on multiple blockchains (originally Ethereum, Polkadot and Binance Smartchain) to create and control their native blockchain vaults, and transfer “control” to third parties. Users can also benefit from passive income without actively managing their investment portfolio. Currently, the Alpha version has been launched, and the beta version and the Parachain version of Polkadot are still under development.
APYSwap products and functions
APYSwap contains three layers of functions, the first is protocol and smart contract, the second layer of aggregation market and the top user wallet, APYSwap machine gun pool is at the bottom. As a smart contract, it can manage access to its funds and functions based on the ownership of the machine gun pool by other blockchain agents. In addition, it can also interact with any trustless services on the Ethereum, Polkadot ecology, and Binance smart chain network.
The ownership of the machine gun pool is divided among multiple agents through tokenization, allowing investment managers to freely create specific combinations that provide liquidity, farming income, or allocate other assets, and can re-form these portfolios into divisible shares for transfer To third parties. Therefore, users can use APYSwap machine gun pool shares to replace unlocked assets for trading. This function provides sufficient liquidity for previously illiquid assets and guarantees rewards linked to assets that are still locked.
Polkadot, Binance Smart Chain or Chromia Blockchain can be used as a second-tier network to transfer or trade shares in the APYSwap machine gun pool, while the assets are still fixed on the Ethereum network. This feature also enables Uniswap-style token exchange transactions, allowing users to freely exchange tokens on the second-layer network Chromia without paying high gas fees and significantly saving waiting time for transactions on the Ethereum network.
The investment portfolio and APYSwap machine gun pool shares can be obtained in the APYSwap trading market, and market transactions will be signed through APY Mask (Metamask-style web wallet). In addition, the wallet can also be used to manage APYSwap vaults, transfer their ownership, etc. Users can log in through APY Mask and use APY token balance to vote to decide whether to add new services, or to whitelist or blacklist certain DeFi projects.
Currently, the stock price of the APYSwap machine gun pool and the price of the asset pool are determined by oracles. A part of the APY token fee will be used to reward the honesty and credibility of the oracle, and the tokens can also be used to bet to vote for the honest oracle. Since the buyer can reject or accept the price provided by the seller, the stock price will be settled naturally by the market. The oracle machine will also conduct price evaluation, and the buyer/seller can use APYSwap tokens to pay for the entrusted oracle machine in exchange for corresponding services.
Users can choose to delegate share control to the rebalancing contract through on-chain solutions or hybrid solutions, select rebalancing strategies, and manage their investment portfolios on their behalf.
The role of APYSwap token
APYSwap tokens are used to protect and manage the ecosystem of APYSwap, ensuring that there are only reputable DeFi projects on the market. Their role is to provide a guarantee mechanism. Projects interested in trading in the APYSwap market must purchase APY tokens and lock them.
If the project is fraudulent, the tokens will be unlocked and issued as compensation. APYSwap will also open limited-time liquid mining opportunities as a reward for locking up funds in the machine gun pool.
Token owners can vote for new portfolio projects. Initially, the APY team and early users will provide a portfolio and tokenized machine gun pool. In the long run, the platform will turn to be completely decentralized, allowing community users to become decision makers.
Portfolio managers can attract more users to invest by offering unique projects in their portfolio, so they themselves will be more inclined to buy APY tokens. They will also need to use tokens to vote for adding the above items to APY’s whitelist. Therefore, the portfolio manager will make a significant contribution to the market value of APY tokens.
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