Yapeswap Weekly Update — July 15th

The following is an abbreviated account of the Yapeswap weekly developers meeting held on 7/15/21, for which ApeBuilder, 0xMayflower, and Torgmeister were present

ApeBuilder shared his vision for Yapeswap:

Goal: To make the most profitable AMM for LP’s
General Approach: Focus on how to manage inactive reserves in the pool, not the AMM itself.
Specific Approach (short term): Leverage UniV2 AMM and Yearn Finance

Torgmeister and ApeBuilder discussed AMM’s:

  • UniV2 is a good 1st option to build on and can be migrated later with relative ease
  • After the initial launch, the team will continue to seek more efficient AMM models

ApeBuilder shares the main milestones for the project:

  1. Launch the initial version of Yapeswap (~ 2 weeks)
  2. Launch Yapeswap on Optimistic Ethereum (~1–2 Months)

0xMayflower pointed out that we may need to discuss the Optimism launch with the Yearn Community, however, we can always launch Yapeswap onto Optimism before Yearn is ready, and the protocol would work similar to Uni/Sushi swap until Yearn is ready for optimism. Users would need to take no action for their reserve liquidity to be deployed to Yearn, the protocol will do it automatically once it is ready.

0xMayflower provided the following figures regarding gas consumption:

  1. Bare Uniswap consumes about 73462 & Yapeswap uses 87882.
  2. Yapeswap needs rebalancing when the deposit rate is out of range. => consumes around 500K gas (depends on Yearn side). Maybe hope it happens once or twice a day.

ApeBuilder replied that the Yapeswap team would execute the second scenario, therefore the 1st scenario would affect users the majority of the time.

The team noted that Optimism will greatly help reduce gas usage, but that the competition would also enjoy this benefit.

0x and Ape explained the farming ratio to Torg: The operator sets the farming ratio, say for example the minimum rate is 80% and the maximum is 100%. Rebalancing would deposit the average (in this case 90%) into Yearn with the other 10% being used to facilitate swaps.

The rest of the discussion can be condensed into a few key points:

  • Gas usage is more critical to the trader and not the LP’s.
  • The team will need to find a way to incentivize traders to use Yapeswap, particularly upon initial launch in order to secure liquidity (once liquidity has been secured, traders will trade where there is liquidity).
  • Several incentive methods were discussed including allocating $YAPE emissions, airdrops, and airdropped NFT’s. The team agreed that this should be a one-time airdrop event for traders who make swaps before a certain date, as incentivizing usage per swap would use too much gas.
  • Tweets should be ‘ape-like’ and fun, and we should make an intentional effort to engage and attract the UNI and SUSHI communities
  • The twitter account can use the Ape logo the team decided on created by CJ8, we named her Lucy

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Yapeswap is a next generation AMM focused on maximizing capital efficiency for our liquidity providers

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YapeswapDAO

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Yapeswap is a next generation AMM focused on maximizing capital efficiency for our liquidity providers

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