APY.Finance Coin Price & Market Data
APY.Finance price today is $0.847859 with a 24-hour trading volume of $1,216,691. APY price is down -2.8% in the last 24 hours. It has a circulating supply of 52 Million APY coins and a total supply of 100 Million. If you are looking to buy or sell APY.Finance, Uniswap (v2) is currently the most active exchange.
What is APY.Finance?
APY.Finance is a smart contract protocol that functions like a robo-advisor for yield-farming. It offers a single place for users to deposit their tokens and the protocol will then do all the work in pooling liquidity from other users, rebalancing the portfolio, and distributing gas costs evenly. In short, APY.Finance makes it cheaper for users to participate in yield-farming.
What are APY tokens?
The APY token is APY.Finance’s native governance token. As the platform is developed further, APY tokens will be used to shape the direction of its future.
APY tokens will be developed in 3 stages:
- Stage 1 - Token holders can vote to change system parameters such as fees and rebalance thresholds
- Stage 2 - Token holders can vote to change the parameters of the strategies such as locking periods and collateralization ratios
- Stage 3 - Token holders can vote for new strategies to be implemented for the portfolio
You may read APY.Finance’s Medium post to know more about the APY tokens and its tokenomics.
How does APY.Finance work?
Users will first deposit stablecoins such as DAI, USDC or USDT into the APY Liquidity Pool. Upon depositing their stablecoins, users will be given an amount of APT tokens proportional to their share of the pool. Users can withdraw their funds and yield-farming profits at any time by redeeming their APT tokens.
After a deposit is made, APY.Finance will automatically direct the funds to yield-farming strategies. The platform’s smart routing system redirects the funds not just solely with the intention of capitalizing on the highest yield, but also based on the risks involved.
Capital is distributed based on a strategy’s risk score, represented by a number between 0 and 10 to the power of 18. A strategy’s initial risk score is set when the strategy contract is deployed. This risk is assessed by the team based on a variety of factors.
If a strategy has high yield but also high perceived risk, some capital will be allocated to capture the upside but only a limited amount to reduce the downside. To know more about how the platform works, you may refer to this Medium post.
How do I get APY tokens?
Besides that, you can obtain APY tokens by purchasing them from decentralized exchanges such as Balancer or Uniswap. You can also find APY trading on other various centralized and decentralized cryptocurrency exchanges.
You can also earn APY tokens by participating in the liquidity mining and liquidity provider rewards program. To earn APY tokens through liquidity mining, users can deposit stablecoins into the APY.Finance’s liquidity contract. The liquidity provider rewards program lets users receive APY tokens for providing liquidity to the Uniswap and Balancer pools.
The rewards are proportional to the amount of stablecoins or LP tokens provided. APY tokens earned will be vested block-by-block over a 6-month period, using the Synthetix vesting contract.