APY.Finance allows users to have a seamless yield farming experience with the best available rate for DeFi protocols (lending, liquidity pools) without a need to continuously monitor or manually transfer the funds.
It's all automatic. You don’t have to give your funds to any asset manager or rely on a centralized system. It is completely non-custodial and has a decentralized rebalancing mechanism.
What is rebalancing:
Rebalance is a process of moving funds from one strategy to another to maximize gains. Let's consider a user who holds DAI and puts his funds in the Compound pool. Now meanwhile in other protocols, let's say Fulcrum’s DAI pool interest rates have increased (more than Compound). To tap on the opportunity, the user moves his funds to the Fulcrum pool.
Looks simple, Right?. In reality, users have to go through the pain of continuously monitoring and evaluating changes in interest rates, and manually manage multiple transactions.
The situation would look as follows:
- Once, a user sends DAI to the compound pool, s/he receives proof of ownership token (ex, cDAI from Compound),
- Watches tracking tools,
- Analyzes rebalance return opportunity - transaction fee, potential gains, time etc.
- If any benefit with rebalancing, they proceed to exchange cDAI to DAI first, then move DAI to Fulcrum pool and get their proof of ownership token (iDAI).
With APY.Finance, users get the best interest rate on their DAI automatically. The platform’s monitoring system called robo advisor automatically triggers a rebalance if it spots a better-performing risk-adjusted pool on behalf of the users, saving time and gas fee. Platform also contains an additional logic that is a minimum % threshold to reduce false-positive signals.
Threshold takes into account:
- the transaction costs (gas fee) associated with changing the strategy employed;
- the potential gain in yield should the new strategy be deployed; and
- how long it will take to recoup the transaction fees for the change.
Recently, APY.Finance launched its IDO in Balancer LBP. The LBP is scheduled to complete at 2:00 PM UTC on 7th Nov.
What is Balancer LBP: Balancer’s Liquidity Bootstrapping Pool (LBP) is a special kind of Balancer pool that automatically adjusts its pool weights over time. This allows for decentralized distribution of tokens and liquidity provision.
One big advantage of LBP is that it disincentives bot front-running, speculation, and whale buying, thereby, a better price discovery for the project.
As of this writing, the current price of APY tokens in Balancer LBP is 0.042 with an initial market cap of $3.1 Million.
Initially, a total of 7.2 Million APY tokens were planed as circulation supply, however, that changes after Seed investors decided to extend the lock on their allocation.
Seed investors are locking more than 75% of their allocation - The majority of the seed investors whose supply were getting unlocked in the first month of launch decide to extend the lock for up to 1 year. This shows the trust and confidence of seed investors in the APY team and their product development progress.
For more details, read the step-by-step guide to APY LBP.