P60 : Start building a long term position on APW

Summary:
Accumulate veAPW voting power to vote on Jarvis gauges.

Context:
APWine is a yield tokenizing protocol, that is interesting for different types of users:

  • Traders can sell their yield in advance or buy yield, so basically long/short APRs
  • Arbitragers can use the fixed rate feature to secure profits by doing arbitrages on the AMM pools
  • Liquidity providers / farmers can add liquidity in the two types of AMM pools : PT/Underlying & PT/FYT.

The protocol works with a two token mechanism, PT (Principal token), which represents your deposit over the period, and FYT (Future yield token) which represents the generated yield over the 90 days period.

The governance token is the APW, which has a ve-model tokenomics similar to curve.

3 months ago, the DAO enabled gauges, which allows veAPW holders to redirect the reward emission on their favorite pools.

There is currently 1 Beefy vault already added on APWine (mooJarvis4Eur) & 4 are proposed for the next winelisting (mooJarvis2cad, mooJarvis2jpy, mooJarvis2eur & mooJRTETH)

Rationale:
The goal of this proposal is to start building a long term position on the APW token, by locking it to receive more voting power (1 veAPW = 104 votes). Only veAPW holders can vote on the gauges, tAPW and APW/ETH Sushi LP can only vote on proposals.

There might be several steps, as this proposal is to buy & lock APW tokens to vote on Jarvis IBTs, but in the future we can also consider using part of the treasury to add some liquidity and accumulate more voting power.

According to both Mainnet & Polygon multisigs, there are a few tokens that can be used to buy APW, as these tokens are held in a small quantity and are often rewards or bribes.

Mainnet :

  • 245.96 FXS = 1500$
  • 13041.9 ANGLE = 1150$
  • 33.88 ALCX = 1000$
  • 557731 SPELL = 650$
  • 516.84 3CRV = 500$
  • 132.25 SUSHI = 200$

Polyon:

  • 1400.88 KNC = 2650$

Total available = 7650$

At the current rate, 7650 USDC represents around 34000 APW, which would give 3.53M votes to Jarvis DAO if locked for 2 years.


Let’s take a quick example with this IBT: for 180K$ worth of liquidity on PT/Underlying and 3.3M votes, is around 27.9%, so by voting fully on this pool, the APR would almost double for the same amount of liquidity.

This also means that Jarvis DAO could deposit around 180K$ in the pool without dropping the current APR too much.

The votes are saved each week, unless you decide to change it, which means that the votes allocations can be easily decided on Jarvis Snapshot, and changed to follow the DAO strategies.

In future votes, we could decide to allocate x% of the weekly yield to accumulate more APW with a DCA, and/or decide if the DAO should allocate some funds to farm on the Jarvis pools and increase the voting power faster.

Means:
7650 USDC from the previous rewards received to buy & lock APW

Technical implementation:

  • Sell KNC on Polygon & bridge USDC
  • Sell small balances to USDC on Mainnet
  • Buy & lock APW for two years
  • Vote on the gauges each week (if changes)

Voting options:
Yes, buy & lock APW
No, do nothing
Abstain

Should we start building a long term position on APW ?
  • Yes
  • No
  • Abstain

0 voters