This section aims to answer most frequently asked questions, with more added as they come up. If you have a suggestion or need any additional clarifications, the team is available on all social channels to answer.
You can instantly sell your unrealised yield to hedge against price movement.
The APWine protocol locks funds to generate interests which are tokenized as futures, enabling a DeFi user to trade unrealised yield.
The APW token is an ERC-20 token, with a primary focus on protocol governance through the APWine DAO.
The token follows a Curve-like form of voting escrow (veAPW) which has a Lock capability. Locking your APW for up to 2 years will yield an increased voting weight and share of protocol rewards. The longer you lock your APW, the more voting power you have.
In additiong to the voting power it represents, APW token holders will also benefit from the 5% performance fee collected from all yield that is deposited and futurized on the platform from day one. This fee can be adjusted by the DAO through a proposal, with the consensus of token holders. On top of that, a part of fees collected via swaps — 0.05% of trading volume in total — performed on the APWine AMM are also set to be retributed to APW holders.
The APW token has not only utility, but a stake in the performance of the protocol.
Locking this token is necessary in order to generate the interest during the entire period. The possibility of withdrawing your fund during a future period will be added later.
While locking the bearing interest tokens during the period corresponding to the future, the protocol mints a number of future interest tokens that correspond to the amount of funds locked by the user. This token is tradable and will allow its holder to redeem the yield gathered by our smart contract at the expiration of a future. Market actors can therefore speculate in the future value of the yield of an asset (for example a Dai deposit on Compound) by selling or buying this future interest token.
You can mint them by locking your funds on our platform for a period of a future. Or you can buy them on our exchange and everywhere they are traded.
You want to get involved in yield farming but the fluctuation of APYs scares you. So you want to sell your interests at a fixed price to minimise impact from fluctuations. For example, after having deposited your DAI on Compound you can lock your cDAI in APWine for a week and trade in advance the yield that they will generate this week.
We want to create a financial instrument to trade future interest rates in DeFi. Also helping the farmers to hedge their risks, and farm with their own yield.
APWine includes an exchange where everyone will be able to trade future interests easily on it. We expect to get traction also from yield farmers, arbitrageurs, and traders.
We have a beta live on the mainnet and we are waiting on the completion of audits to release the V1. The V1 will feature an improved interaction flow for farmers and a custom AMM dedicated to future yield trading. Integrations of other types of yield-bearing assets and new instruments will be released in a later stage.