What is Yapeswap?
Yapeswap is a next generation AMM focused on the smart utilization of liquidity. With a typical AMM, liquidity is only utilized and earning rewards when trades are taking place. In most pools, 80–90% of the liquidity goes unused as only 10–20% is being used for swaps at a given time. In the era of capital efficiency, this is a problem for liquidity providers. Yapeswap is providing a solution to this problem by allocating the unused liquidity in our pools to Yearn Finance Vaults. Yape will automatically adjust the farming ratio, or the balance of liquidity held for trades, and the amount that is stored in the yield earning vaults. This balancing is based on the overall size of the pool and the demand for liquidity due to trading activity. This description is slightly simplified, but explains Yapeswap in a nutshell, the AMM that ensures your crypto is working hard to earn you more crypto.
What can I expect my APR to be?
APR’s will vary depending on a variety of factors, including TVL, trading volume, and the yields generated in the Yearn Vaults. Our goal is to become the most profitable AMM for liquidity providers. Simply put, expect your APR to be ‘high’. The development team is most focused on building and launching the product, and user analytics will be added to our V1 sometime after launch.
What makes Yapeswap special?
The Yapeswap development team is pioneering the smart utilization of liquidity. While Yapeswap V1 is essentially one powerful product (access to Yearn Vaults while simultaneously earning LP rewards), future versions of Yapeswap will blossom into powerful suites of tools for DeFi users, particularly LP’s, to access higher yields. The current plans for Yapeswap V2 involve building on top of the recently released Sushi Trident AMM, which is focused on facilitating capitally efficient liquidity pools. From V1 to V2 and beyond, Yapeswap will continue to build and integrate new ways for liquidity providers to earn high yields.
What currencies will be supported by Yapeswap?
- V1 will focus on Stablecoins paired with ETH and wrapped BTC. More pools will be added as the dev team fine tunes the way our protocol interacts with Yearn Finance.
- The initial trading pairs supported by our V1 at launch will be
How are virtual reserves pegged to the underlying assets?
- You provide 1M USDC + 1M DAI to the Yape pool.
- The Yape pair deposits 0.9M USDC & 0.9M DAI to Yearn.Finance.
- The virtual USDC reserve is expressed as (0.1M + 0.9M), and the virtual DAI reserve is also (0.1M + 0.9M).
- When a trade is initiated, the balance in the Yape pool is used to facilitate the trade at a gas price similar to Uniswap V2.
- If the balance in the Yape pool is not sufficient to facilitate the trade, Yape withdraws the farming asset from Yearn and rebalances the farming ratio.
- When the rebalance function is called, it takes the net yield and sends it to the fee manager.
- The fee manager buys back Yape using the revenue & distributes them to the veYape holders.
For example, if DAI has a farming ratio of 95% when the rebalance function is called, the function will withdraw 5% from Yearn because DAI is over-farming. At the same time, the USDC is under-farming at 85%, so the function will deposit 5% to Yearn.
How does gas affect Yapeswap’s efficiency?
During normal operation, ‘bare’ Uniswap consumes about 73462 & Yapeswap uses 87882. Yapeswap needs rebalancing when the deposit rate is out of range, which consumes aroung 500K gas, depending on the circumstances at the time of rebalancing. Rebalancing should not be needed more than 2 times a day, so users are largely paying a similar gas fee as they would with an AMM like Uniswap for a better return on their capital.
How is Yapeswap affected by slippage?
Yapeswap will have the same or better slippage rates than any other AMM. This is because the swaps are performed considering the overall number of tokens in the pool (active + deposited in yearn pool).
What are $YAPE, $yCOMMIT, and $veYAPE?
- $YAPE is the native token for the Yapeswap protocol. Yields from Yapeswap pools will be paid in $YAPE.
- $yCOMMIT is a stablecoin Yapeswap will use to pay workers who contribute to the protocol, and to fund proposals from the community aimed at improving the AMM or the DAO. $yCOMMIT can be easily swapped for DAI or USDC or it may be burned in exchange for $YAPE.
- $veYAPE represents access to dividends and voting rights within the Yapeswap DAO. $veYAPE can only be obtained by locking $YAPE tokens for set time periods
- 100 $YAPE tokens locked for 4 years > 100 $veYAPE
- 100 $YAPE tokens locked for 2 years > 50 $veYAPE
What are Yapeswap’s plans for future growth?
- V1 will be released with a minimal amount of pools. Before the release of V2, the team will provide frequent updates to V1 including additional pools, $YAPE burning for $vYAPE, $vYAPE locking for $veYAPE, and more.
- V2 will be focused on three deliverables
- Improving on existing capital efficiency by integrating with Suhsiswap’s Trident with Yearn.
- Migrating with layer 2 — the specifics of which layer 2 will come first will be largely dependent upon how Yearn integrates with Optimism/Arbitrum.
- Writing solidity strategies that contribute to the yearn community.
YAPE will begin emissions on August 15th. 24,000,000 tokens will be created in the first week and the weekly emissions will be reduced for the first 29 weeks, bottoming near 1,365,000 at a total token supply of roughly 229,000,000. Weekly emissions will begin to increase slowly from week 30 on. After 5 years, weekly emissions will reach 5,434,000, and the total token supply will be 911,000,000.
The distribution of $YAPE emissions will be as follows:
- V2 will be focused on three deliverables
- 60% to Liquidity Providers
- 20% to $yCOMMIT mining
- 10% to the Yapeswap DAO treasury
- 10% to the Initial Contributor Sharing Program
The specifics of the tokenomics are still being designed and more information will be available by 8/10/21 when the community docs are released.
Who are the Devs?
Yapeswap is built by crypto nomads from around the world. The project founder and original proposal writer ApeBuilder recruited a team of 10 developers through Workhard Finance community channels before forking the WHF DAO. We invite you to interact with the team in the Yapeswap discord and telegram channels. The dev team’s Discord handles are listed below, and we hope to see you in there asking more questions.
What is Yapeswap’s plan to compete with larger, existing AMM’s, especially those that are also integrating solutions to provide LP’s with more earning opportunities?
The dev team believes in Ape Building, as in building products to be ready for launch, launching, and continuing to add features. We believe this will work to our advantage as we will be the first live AMM that deploys liquidity outside of liquidity to pools to maximize capital efficiency.
By being the first AMM to use liquidity outside of liquidity pools to maximize yields, we have the added advantage of building and adding to our protocol in real time, which will garner the trust of liquidity providers and traders. Our team is committed to building up the functionality and features of Yapeswap over time and delivering better and better results to our users.