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๐Ÿ™‹ FAQs

This section aims to answer most frequently asked questions, with more added as they come up. The team is available at all times and on all social channels if you have any suggestions or need any additional clarifications.

What would be the point of locking tokens inside your protocol?#

You can instantly sell your unrealised yield to hedge against price movement.

What is the idea behind APWine, in one sentence?#

The APWine protocol locks funds to generate interests which are tokenized as futures, enabling a DeFi user to trade unrealised yield.

What is the APW token?#

The APW token is an ERC-20 token, with a primary focus on protocol governance through the APWine DAO.

Why would I lock my APW?#

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.

What are the incentives to lock APW?#

In addition to the voting power it represents, APW token holders will also benefit from a performance fee collected from all yield that is deposited and futurized on the platform. A part of the fees collected via swaps performed on the APWine AMM are also set to be retributed to APW holders that stake their tokens in the governance. Both will be voted on and adjusted by the DAO through governance proposals.

The APW token has not only utility but a stake in the performance of the protocol.

How to trade our yield before it is even realised?#

When depositing Interest Bearing Tokens (IBTs) during the period corresponding to the future, the protocol mints a number of Future Yield Tokens (FYTs) and Principal Tokens (PTs) reflecting the value of IBTs deposited on the platform by the user. Those tokens are tradable and allow their 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 buying or selling this FYT.

Note that it is possible to withdraw IBTs and accrued yields at any time by burning an equal amount of PTs and FYTs.

Where can we get those future yield tokens?#

You can mint them by depositing your funds on our platform for a period of a future. Alternatively you can buy them on our exchange and everywhere they are traded.

What is a typical use case?#

You want to get involved in yield farming but the fluctuation of APYs scares you. You thus decide to sell your interests at a fixed price to minimise the impact from fluctuations. For instance, after having deposited your DAI on Compound you can deposit your cDAI in APWine for a defined period and trade in advance the yield that they will generate during that period.

What are the motivations behind the project? What problem does it solve?#

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.

Who is it for?#

APWine features a custom AMM where everyone can trade future interests easily. We expect to get traction also from yield farmers, arbitrageurs, and traders.

What are the differences between APWine and other protocols like 99mph or ?#

APWine differs from fixed-rate lending protocols (e.g. 88mph, Yield) in that its main purpose is not to offer fixed interest rates, but to allow the trade of future yield. Consequently, through this low-level mechanism, it can offer fixed rates - but also upfront yield.

The last few months new future yield tokenization projects appeared. APWine stands out with its modulable and integrable approach, offering efficient yield derivatives.

Was the project audited?#

The core protocol and the AMM were audited by a combination of actors including Quantstamp, Peckshield, BlockSec and independent ones.