Increasing Token Utility

Hey all, as spoke about previously in APY’s post-launch roadmap, and recent update, one of the team’s immediate priorities is increasing token utility.

The team and the community, together, have been taking great strides in discussing and evaluating various ways this may be achieved. Let’s aggregate and continue all previously shared thoughts across this forum, Telegram, and Discord, and throw them into this thread to continue this discussion in a central, easily trackable, location.

Some ways the team has conceptualized increasing token utility is by:

  1. Using a portion of rewards issued to form an insurance fund to cover the possibility of a shortfall event (hack/exploit/etc.).

Mentioned by @Tahouse previously: Stability Treasury & Safety Router Proposal

  1. Possibly using a portion of yield returns to purchase $APY tokens on the market, which would allow us to distribute all of our yield rewards in $APY tokens.

  2. Bonding market mechanics presented by projects such as Olympus Pro, which also serves to increase liquidity depth, and especially combined with Gelato’s G-Uni protocol.

Some other threads that have shared ideas to increase token utility are listed below. Please continue the conversation in this thread, including feedback on any of these currently presented ideas, as well as any new ones that may be ideated. We are stronger by collectively putting our minds together to come up with the ultimate solution and to achieve the collective goal we all share in building APY.Finance to the top.

Other Token Utility threads:

9 Likes

Hello everyone !

Regarding the first idea, I think the underlying mechanism can be improved.

Rather than concentrating the repurchase in an arbitrary way, on a daily basis for example, I think that we should rather redirect part of the stable currency towards a “stability chest”.

Let me explain: traditionally on the DEFI and CEX platforms, redemptions are carried out on a regular basis but not intelligently, so that the number of tokens redeemed is not maximized. My idea is that we should wait for the big bearish market moves, which would trigger the Stability Chest.

For example, depending on the options defined beforehand, if the market drops by 10%, then 10% of the funds in the stability chest are redeemed to buy back apy token, which will be transferred to the insurance pool or burned, depending on the decisions that will be taken in the future. The funds in the safe will thus be spent non-linearly, but according to significant market movements which will make it possible to actively buy back the deeps and maximize the tokens available in the treasury.

This is an approach that Nexo and Swissborg are already using, to name a few.

5 Likes

Thanks for opening this thread and encourage community to get involved in governance actively.

Your proposal about Using a portion of rewards issued to form an insurance fund to cover the possibility of a shortfall event (hack/exploit/etc.) would help stabilize markets regardless context, in my opinion it should be implemented ASAP.

Otherwise, User’s proposal about using a portion of yield returns to purchase $APY tokens on the market, which would allow us to distribute all of our yield rewards in $APY tokens could be contrary to one of pillars of APY: stables yield.

I believe there’s different ways to engage community through both voting and spreading the word through users benefit by rewards doing so.

2 Likes

The current issue with the platform is that platform is great for a stable coin, but there is less incentive to own $APY tokens other than voting right. The platform itself does not utilize $APY tokens, which is reflected in the current price & ranking changes in Coinmarketcap & CoinGetko. Token Utility must provide more benefits of APY ownership. Repurchasing $APY using yield and distributing all yields with $APY will help with a strong token economy in APY.Finance platform.

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I think it would be quite helpful if the team could somehow let us know what is clearly not in US regulatory compliance and what is. Otherwise I feel like many of these proposals will be shots in the dark.

1 Like