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We all are aware that DeFi’s much-elevated stature became a reality mainly after June this year. Many protocols have debuted here, progressed, earned a favorable reputation, and marched ahead, while many couldn’t really keep up their promises. But to talk about DeFi implies talking up the various success stories that make up the ecosystem. Many discussions surrounding Uniswap and its governance tokens are doing the rounds and have dominated every space, but there is yet another platform we need to talk about.
APY. Finance is the latest DeFi protocol that has multiplied its popularity having locked more than $67 million of stablecoin in the first hour of pitching in its mining program. The newly launched yield farming platform APY. Finance now attracts more than $67 million in locked funds and all this just within one hour of liquidity mining earlier today!
Source: Twitter
To elaborate, APY. Finance’s mining contracts incentivizes users to allocate liquidity in the form of DAI, USDC, USDT, Stablecoins. In return, the users would be rewarded with the notable platform’s governance token APY. According to its official blog post, in the first month, 900,000 APY tokens will be mined. The details and fine print surrounding incentivization details will vary from month-to-month and will not be ascribed to one format. The aggregate amount of APY to be mined will be a total of 31.2 million tokens of 31.2% of the total token supply.
The APY token distribution has apparently raised some logical concerns for many in the community. One of the users Gommba stated that:
“There’s no chance for any regular #DeFi users compete against VCs and whales here. Already had a presale AND it’s only 31% of 12228total supply.”
Half a month ago, APY. Finance raised a good $3.6 million from a private sale. Top-notch investors and investment firms participated from within the crypto space to contribute to the private sale including Alameda Research, Arrington XRP Capital, Coingecko, and Parafi Capital.
But even to date, there is ambiguity on how many tokens were sold in the same and at what price. As per its official blog post, 20% of the token distribution will be routed towards the seed round investors at $0.09 per token which will be vested for one year. 16.5% of the token distribution will be reserved for strategic investors at $0.135 per token, again vested for one year.
Furthermore, 20% will be reserved for the team and its advisors which will be vested followed by a three-year linear release. Once the sale of the entire APY token supply gets released, the community will come in a position to control as little as 43.5% of the token’s supply.
If the entire 36.3 million tokens are available to investors to be sold out, APY. Finance will then raise more than $4 million. What needs to be observed is whether the token will be listed immediately after launch similar to UNISWAP and SUSHI SWAP or will it take another route.