Low risk, capital efficient and automated strategy for APY futures.
The strategy consists of 7 steps: (1) swap all capital available and farmed APW for USDC on Uniswap, (2) use it as collateral to take leverage on Gearbox, (3) swap the leveraged USDC to USDT (4) deposit the capital on Aave and get aUDST (aave interest bearing tokens), (5) stake the aUSDT on APWine for PTokens (principal) and FYTokens (variable APY) and (6) swap the PTokens for USDT (7) repay the Gearbox debt instantly within the same transaction. Now the user is left with FYTokens that can be farmed by providing them as liquidity to the internal APWine AMM. This strategy is automated with Gelato. The overall market performance of such strategy is characterised by low volatility and limited to null exposure to the underlying asset by selling a future on the APY which can be changed at ease in the smart contract constructor. Users instantly get back their initial capital and are left with a value-accruing token.
How it's made
UniswapV2 is used to swap liquidity, Gearbox is the leverage capital provider, Apwine splits interest bearing tokens into a stable and a future APY and provides extra income via the liquidity mining program on the AMM LP position, Gelato is automating the strategy execution with regards to gas price and token balances, finally Aave is the underlying token that generates yield.