Please note this is an archived post from Mar 1, 2022 migrated from Medium.com

We are excited to officially announce that APWine V1 deployment on Polygon has been successful.

APWine allows anyone to speculate on yield generated by DeFi protocols. Deposit your interest-bearing assets on APWine to tokenize yield. Get your yield upfront and hedge risk on APY volatility.

What’s more, users can provide liquidity to capitalize on this trend and earn swap fees from APWine’s native AMM.

Thanks to Polygon, users of any size can deploy their capital and speculate on yield without stressing about high network fees 🍷

Explore the cool things you can do with APWine 👇

APWine opens up a world of opportunities for users of various yield-generating strategies:

• Sell unrealized yield today at a fixed rate (hedge risk on your passive revenue)
• Buy discounted Principal Tokens (buy, wait for the expiry and redeem your profits without any risk of volatility)
• Provide liquidity for the cutting-edge AMM that powers trading between PTs, FYTs & iBTs to earn swap fees

The list above is a brief of potential use-cases. Explore them all at apwine.fi

APWine introduces two new token types: Principal Token (PT) & Future Yield Token (FYT) which are minted when a user locks in their Interest Bearing Token (iBT).

• Principal Token (PTs) represent the deposited token by a user in the protocol. From PTs the protocol generates FYT at a 1:1 ratio at the beginning of the period.
• Future Yield Token (FYTs) represent the yield generated during a specific period. They are generated at a 1:1 ratio by the principal tokens at the beginning of the period.

Interest Bearing Token (iBT) Interest-bearing tokens are tokens whose balance changes over time due to interest accrual and/or rate change.

Example of selling unrealized yield today at a fixed rate:

Adam earns a high yield by lending out his $USDC on Aave, but he’s concerned that this yield opportunity will soon get very popular and APY might go down as more users join the party.

Adam learns about APWine where he can deposit his $amUSDC (Interest Bearing Token/proof of deposit at Aave) in order to mint PT & FYT tokens.

From here, Adam can easily sell FYT back to USDC to get his future yield immediately at today’s rates.

Adam can keep his PT token and receive the underlying principal (USDC) in full at expiry. Meanwhile, he can supply PT tokens to APWine’s AMM and earn extra swap fees from traders that speculate on yield.

This is one of many possible scenarios for users to interact with APWine.

As of today, Polygon users can enjoy speculating on the yield of these six interest-bearing tokens 🍷 with more iBTs around the corner.

Vote on the upcoming assets on Polygon via our Governance dashboard.

👉 See answers to the most frequent questions about APWine.

About APWine

APWine is the pioneering protocol for tokenized yield in Web3. Users can leverage the protocol to fix interest rates, speculate on APR evolution or receive future yield in advance (even today).

Build the APWine City with us and connect with fellow Winemakers via:

Lenster | Twitter | Discord | Website

About Polygon

Polygon is the leading platform for Ethereum scaling and infrastructure development**. Its growing suite of products offers developers easy access to all major scaling and infrastructure solutions: L2 solutions (ZK Rollups and Optimistic Rollups), sidechains, hybrid solutions, stand-alone and enterprise chains, data availability solutions, and more. Polygon’s scaling solutions have seen widespread adoption with 3000+ applications hosted, 1B+ total transactions processed, ~100M+ unique user addresses, and $5B+ in assets secured.

If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your dApp, get started here.

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