Be able to convert earnings into APY in exchange for additional earnings

Hello everyone !

An idea came to me to increase the utility of the token: let me explain. As you know, the platform is already generating a varying percentage amount in stablecoin, which is then paid back to the users.

But, by taking an interest in other platforms, some centralized like Nexo: an idea came to me. Why not offer the possibility of converting earnings in stablecoin into apy token? By paying a bonus percentage.

The tokens will be bought in the open market (very important point, this is where they will have to come from), which will support the price on the rise as long as people have confidence in APY and believe the token will continue to rise.

I think we can count on the fact that a good portion of the people who place will speculate on the upside for the token, which means they will hold the tokens for a while; thus, the larger the TVL, the higher the price will be as long as people have confidence in the platform. We could also make the token farming accessible only to those who have checked this option, because this shows a certain loyalty.

To encourage investors to check this option, I thought of a solution: Those who decide to earn in stablecoin will see part of their earnings, 8% for example, taken by the platform to be redeemed on the open market to be burned. then or transferred to a safe for marketing or other future projects.

With today’s TVL, if half of the people ticked this option, it would mean that about 2900 tokens would be bought in the market daily.

What do you think ?

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I’m mostly mobile this week or else I would dig in and try to do the math myself, but it would be nice to see if @frodogorn or others could list out in the post the numbers you discussed in chat to help visualize the measurable impacts your idea would have. What IF 8%? Expand on the examples you reference. How do you see that affecting the the overall yield now?

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Hello !

Maths are pretty easy:
TVL = variable
Interest expected : 8%
Expected rate of people that earn in APY token : 50% (chosen arbitrarily)
Actual price : 0,7$

So we get (0,04TVL/365)/0,7
With a TVL of 100m : 0,04*100m/365/0,7= 15655 APY tokens bought daily
Then, we add the tokens thanks to the performance fees applied to those who have not checked the option “earn in APY token”, for example 6%, or 6% * 8% = 0.0048
0.0048 * 100M / 365 = 1315

So, with a TVL of 100 millions and performances fee of 8%, we got 16970 APY tokens bought each day for instance

This will not affect the performance of the strategies, but will increase the daily buying pressure and liquidity, and it is assumed that most people will hold the tokens by speculating higher over several months, so that it there will always be tokens waiting to be collected.

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Using the revenue from the platform (by skimming off the top of the yield) to buy tokens off the open market, add to an insurance fund and put towards an APY Foundation would be great idea

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