The Yield Optimizer on Terra.
When Defi summer kicked on, Ethereum’s pole bearer was the Yearn.finance. Yearn.finance took off as it was the easiest and simplest option for a non-tech savvy investor in the complicated world of Crypto and DeFi. The ease of use, abstracting the complex strategies underneath, while providing fancy returns to investors by leveraging the DeFi money-legos, was its selling point. Apollo DAO wants to be the Yearn equivalent and more — not just a Yield Aggregator in common sense, but a one-stop place for all farming on the Terra ecosystem.
Why Apollo DAO?
Mirror and Anchor were the foundation protocols for the Terra ecosystem’s expansion towards the west. Armed by stable APRs unheard of in the land of Ethereum, and removing the entry barriers for the common man, These protocols began cementing Terra’s status as a financial lynchpin the upcoming Decentralized future.
In very simple terms, Anchor is a savings protocol — You deposit UST to earn 20% annually by holding a value accruing token a-UST or borrow UST against your LUNA. Mirror on the other hand is a synthetic assets market. As a farmer, you could try leveraged farming in Anchor, i.e borrowing against LUNA and depositing to earn. In Mirror, providing liquidity to the m-Assets — UST pair was an option. These were two separate entities in themselves. The lack of composability between the two hindered further development in the farming space.
But these changed with Mirror v2, where short farming was introduced, and the yield accruing token a-UST could be used as collateral. This breathed fresh air into the stale farming landscape as the newly introduced composability was the first step towards money-legos on Terra. Now a savvy farmer could go to Anchor borrow against LUNA, deposit to earn 20% APY, go to Mirror and undertake one of the farming activities there.
Now Mirror is a farming paradise for the right person. You will need at least an hour to watch all the possibilities via the informative content created by danku_r and Terrabites in their Youtube videos. This is excluding all the newer protocols that are launching in the boom since Columbus-5 deployment. To understand the insanity for an average investor, check out this graphic by the community favorite danku_r
Overwhelming. Isn’t it? This was built by danku_r over a month ago in their medium post. This doesn’t account for the tons of protocols launching this month.
A Farmer’s love story featuring Terra Luna | Full DeFi Guide
It is at this juncture, Apollo DAO comes in. Protocols need liquidity. Farmers on the other hand want rewards. Apollo DAO simplifies this process. Just deposit funds into a Vault of your liking and the Vault will farm on your behalf.
How does Apollo DAO do it?
Take the simplest MIR farming strategy available right now. Providing Liquidity. When you provide Liquidity to a pool in Mirror, you collect fees and Mirror token rewards. However, converting the rewards and depositing them back into the pool would compound your earnings. Not just compound your earnings, but it also gives a decent hedge against impermanent loss as now you have more funds in your Pool. This however is a tough ask. Having to manually claim your rewards, swap them into the Liquidity pool tokens, Providing Liquidity to the pool, and staking them is a tedious task. 4 Transactions every day, clicking multiple buttons typing in passwords multiple times, tiring.
Apollo DAO allows you to deposit your LP into its vaults. This deposit is then staked on your behalf in the pool. Now as the LP earns rewards, the Apollo DAO vault automatically compounds at optimum time intervals. This means the Vaults are automated to compound your rewards in an efficient manner. Not only do the tiresome task of having to make 4 transactions for a simple farming strategy is eliminated, but as Vaults automate the compounding of multiple users as a single transaction, this also means you make a discount on the Gas Fees paid.
Additional Vaults will be added in the future for even more complex strategies. Moreover, the Apollo community can create its own Vaults for its own custom strategies to maximize yield.
So it’s all about Yield?
Yes but actually NO !!!
While Apollo DAO is at its core a yield aggregating protocol, It is the simplicity of the entire process that puts it on the pedestal for Yield generation in the Terra ecosystem. Farming has usually been accessible only for the most tech-savvy members of the community. Wrapping around the different protocols, how to take advantage of the composability, whats the current net APR for a strategy, are just a few of the things that overwhelm a newcomer to the ecosystem. A community grows not by the APR it can return to the community, but the accessibility of such an APR to all, irrespective of their background — financial or technical. And this is exactly where Apollo DAO shines.
Is it that easy to farm on Terra?
With Apollo DAO, a resounding Yes. So how easy.
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Make sure to have some UST in your wallet. If you have already provided Liquidity somewhere, those LP tokens are good too. The fees are in UST so keep some UST for that, 10 UST should be fine.
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Click the link below to take you to the Apollo Farm Dashboard.
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A colorful Yellow-Black UI signifying light amongst the darkness for the common user. Click the connect button (1) on the top left. Connect your Station wallet via extension or WalletConnect
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Select a pool of your choice, from the Top Yields section(2).
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I’m going with the MINE-UST pair, cause I want 100+% APR.
- Select if you want to deposit UST or LP token into the vault.
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Enter the UST or the LP tokens you want to deposit into the Vault and click confirm.
(Apollo is smart enough to prevent you from putting all of your UST, and does always leave 2UST in your wallet for exiting the Vault later)
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Sign the transaction in your wallet and wait for confirmation
Congrats, you just entered the world of Yield Farming on Terra with just a single Transaction. In the future, you could invest your assets into myriad of complex Yield Farming strategies leveraging the Terra ecosystems now outbursting money-legos, in a single transaction. Remember, it’s not the APR, but the accessibility of that APR that matters.
You can track your investments and your stakable assets under the Portfolio tab
[3] shows you how much you have invested and the Current APR and DPR.
[4] shows the amount of stakable assets lying idle in your wallet. Just go ahead and put them to use.
Not satisfied with the Top Yield options, scroll down and choose from the Vaults below.
Apollo APR ??? — Apollo token ??
It’s DeFi, and DAO. Yes, Apollo will be a Decentralized Project in the long run. The community will have control over all aspects of the protocol. This control is tokenized in the form of its own Governance Token $APOLLO. Over the next 3 Years, the $APOLLO token will be distributed in a fair model in the following way
If you want full in-depth into the Tokenomics —
Of the 100Million $APOLLO tokens
- 15% will be locked for funding future Development.
- 14% will be distributed to current Developers.
- 50% will be distributed to Yield Farmers — Vault users.
So a sizeable chunk of the Governance token will be put to enhancing the Protocol by incentivizing depositors and developers.
In a similar way to Curve’s vesting, these $APOLLO tokens can be locked in a vote-lock vault to get boosted returns and a share of the protocol fees in the form of $zAPOLLO tokens. By introducing a locking mechanism for the Yielding token, Apollo DAO restricts the downside movement of the $APOLLO token due to increased sell pressure from Liquidity Mining of $APOLLO.
The most important feature in the $APOLLO tokenomics is the War-Chest. The War-Chest will act as a value backing vault for the $APOLLO tokens, creating a soft floor for the price of $APOLLO tokens. This War-Chest will be bootstrapped by Protocol Revenue, with 99% of the revenue being redirected into the Vault. This vault at the start will contain a combination of $bETH + $UST + $LUNA in a 2:3:5 ratio. This should enable the $APOLLO token to not just gain from the value generated by the protocol, but also the general market itself.
This Initial Liquidity can be altered by the Governance in the future, with the Governance empowered to use this War-Chest as they see fit. This War-Chest liquidity will be put to Yield generation, further increasing the backing value of $APOLLO tokens. As the liquidity consists of $LUNA tokens, the War-Chest also enables Apollo DAO participants to take part in Terra ecosystem governance as a single Decentralized entity in a Decentralized ecosystem.
Not just that, the DAO is empowered to introduce other Assets into the War-Chest. This does include governance tokens of protocols launching in the near future and thus allow Apollo to take advantage of possible boosted rewards in a way similar to the Yearn+Curve pair-up.
Apollo DAO expects this initial bootstrapping to be spread out over the 3 years, as the rewards are given out in the form of $APOLLO tokens. Post the 3-year distribution, a bigger chunk of the revenue will be provided to Liquidity Providers, in order to keep the incentivized in the long run. A smart move indeed, that the Apollo DAO teams plan both the short-term and long-term future of the Protocol very efficiently.
Closing thoughts
Simplicity and Security in the Long run. Those gotta be the key takeaways of this read.
Reducing farming opportunities to a single click and transaction, no matter how complex it is, is how communities are built. There will be no indifference in who is included and who is not. The yields are a single click away. $APOLLO token’s tokenomics indicate the main goal of the team, Long term value for the protocol.
Do you want to be part of $APOLLO’s quest to become a central figure in the Terra ecosystem money-legos, Apollo DAO is currently running Community Farming event to bootstrap its War-Chest in exchange for $APOLLO tokens. While Phase 1 was completed successfully, the Phase 2 is live now !!!