Investing in APY Swap
APY Swap, One of the latest additions to the Sky portfolio, we would like to discuss an in-depth overview of the project.
The main problem in the rapidly growing Defi ecosystem is Technical barriers ( Understanding and scrutinizing protocol) and higher transaction fees. Let us understand how APY Swap provides the solution for the earlier mentioned issues.
APYSwap is a protocol for the decentralised exchange of shares of Tokenized Vaults.
Delegated Asset Management
Defi offers a wide range of services ranging from Lending, Yield farming, Liquidity protocol, and derivatives. It is not easy to keep track of the latest services available in the defi market, understand the mechanism, and research the protocol’s use cases. Due to technical barriers, Crypto is still not available for the mass public. APY Swap understands the drawback mentioned earlier and focuses on recreating traditional fintech without compromising decentralized assets ownership at one marketplace.
Financial Product Issuance
APY Swap provides Crypto portfolio managers with a wide range of tools to design financial products. APY Swap could easily support popular DeFi protocols on Ethereum, Polkadot, and Binance Smart Chain, making it easy for portfolio managers to use the protocols that they are familiar with. Users can delegate their assets to the APY marketplace and earn passive incomes once the product is live.
There is a need for interoperability between blockchains as blockchains like Ethereum, Binance smart Chain, and Polkadot in the future offer Defi services. The solution to convert assets from one blockchain to another at current is a time-consuming and tedious process.
“We would be left with a scattered collection of siloed blockchains, each supported by a weak network of nodes and susceptible to attack, manipulation, and centralization.” ConsenSys research paper.
There is a need for cross-chain composability to have mass adoption in crypto so that users can switch their assets from one blockchain to another within a few seconds and hassle-free.
APY Swap implemented cross-chain support for Ethereum, Polkadot, and Binance Smart Chain, and more public blockchains support DeFi applications. We could expand the support for these ecosystems as well. For Ethereum and Binance Smart Chain, the cross-chain support is currently implemented using layer two protocols as a bridge.
APY Swap Product Matrix
APY Swap consists of three layers
1) Protocol and smart contracts ( APY Mask)
2) Layer 2 aggregation marketplace,
3)User wallet on the top layer.
APY Swap provides asset management options by supporting multiple Defi protocols. Portfolio managers can use these tools to design innovative fund structures without dealing with smart contract programming.
APY Mask was designed to make users feel easy and comfortable while interacting with the protocol. Users will be able to manage vaults transactions using layer two chromia accounts. It is a Metamask-style web wallet to interact with DeFi apps through APYSwap Vaults. Users can interact through this interface with the functions offered by APYVaults.
A Portfolio rebalancer is available where users delegate control of their shares to the rebalancing contract, choose a rebalancing strategy, and allow their portfolio to be automatically managed on their behalf.
Ethereum network is congested nowadays. Users can use Polkadot, Binance Smart Chain, or Chromia blockchains as Layer 2 networks to transfer or trade shares in APYSwap Vaults, with the assets themselves anchored in the Ethereum network. Users can exchange between tokens on Chromia layer t without the high gas fees and transaction times of Ethereum. In the meantime, a trustless bridge allowing the transfer of assets to and from the Chromia Layer 2 blockchain. The bridge will either be built by the APYSwap team or collaborate with Chromia as additional functionality to their existing bridges.
APY Swap Marketplace
Users can trade their APY Swap vaults containing Yield Farming, lending, liquidity protocol, etc., with no intermediaries or expensive ethereum gas fees. Users can save a lot of gas fees by using apy swap marketplace.
The insurance pool works purpose is to ensure only reputable DeFi projects are available on the marketplace. During the earlier stages, a whitelist will be created by the team. It will be a decentralized community responsibility further. If a project is deemed to fall below the standards expected, the tokens locked in the insurance pool would be distributed to all participants who own part of its LP tokens in APYSwap Vaults. Projects will stake tokens to propose themselves for inclusion in the whitelist, with token holders voting on the proposal.
APY Swap Ecosystem
APY Swap is backed by leading VCs such as Sky ventures, NGC Ventures, Asymm ventures, GBV, Kyros, Hillrise capital, Astronaut Capital, Black Mamba Ventures, Angelone, Phoenix VC, Wings Ventures.
Project Website: https://apyswap.com/
Project Whitepaper: Whitepaper
Sky Ventures Website: https://skyventuresvc.com/