APY.Finance – a pooled yield aggregator – has announced a liquidity mining rewards program starting on October 1st at 8PM EST.

Users will be able to deposit three stablecoins – DAI, USDC, and USDT – to begin earning the platform’s unreleased APY governance token.

Launch details

The APY.Finance contract will be available at https://apy.finance at 8 EST (12am UTC) later this evening, with liquidity mining rewards being accrued and vested after the platform’s APY token is officially launched.

APY tokens will provide a governance function for the platform, and will also be distributed via a token-generation event (TGE) at a later date.

The initial liquidity provided to the platform will assist in bootstrapping the platform’s total value locked (TVL), and eventually benefit from economies of scale once yield-farming strategies go live.

How it Works

Upon depositing funds to the contract, users will receive APT tokens (not to be confused with the APY governance token), which provides them with a claim on their share of assets in the pool.

Just like Balancer Pool Tokens (BPT) or Uniswap LP shares (UNI), users can claim back their share of stablecoins from the asset pool by burning their APT tokens via the APY.Finance smart contract.

By holding APT tokens, users will also automatically be mining APY tokens. Once the platform is fully functional, this will entitle them to both yield-farming and liquidity mining returns.

As described by the APY.Finance team, its APT tokens are comparable to Balancer’s BPT tokens, which represent a user’s stake in the Balancer pool.

Likewise, the APY token can be compared to Balancer’s BAL token, which is used for governance on liquidity mining and general protocol upgrades.

Liquidity Mining Details

31.2% of the APY token supply has been allocated to liquidity mining rewards, for a total of 31,200,000 APY tokens. 900,000 of these will be mined within the first month of liquidity mining, good for 0.9% of the total supply.

Rewards will be proportional to the percentage of liquidity provided to the pool over the course of the program. After the TGE, the APY token will be vested on a block-by-block basis over a 6-month period, using the Synthetix vesting contract.

What is APY.Finance?

APY Finance is an automated yield-farming platform which automatically allocated user’s pooled funds to the best risk-adjusted farming strategies in the DeFi ecosystem.

By pooling funds, it aims to save users precious time and gas fees on transactions, allowing anyone to benefit from yield-farming returns – no matter their account value.

Although they’re not yet enabled, APY.Finance’s governance mechanisms will be added at a later date once the system is “battle-tested”.

The platform’s smart contract has been audited by Halborn, who have also recently audited Bancor v2 and PowerTrade.

To stay up with APY Finance, follow them on Twitter!