APWine is a yield farming protocol that allows users to tokenize unrealized yield and speculate on the yield generated by DeFi protocols. The platform offers yield derivatives, tools to fix APR, and the ability to obtain future yield in advance. The protocol is now officially launched on Arbitrum.
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 fix period duration (currently 90 days):
- 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.
There are three types of users on the platform: Farmers, Traders, and Liquidity Providers. Farmers can sell their future yield at a fixed rate and get upfront liquidity to reinvest in other strategies, while Traders can speculate on the variation of APY through the pricing of FYTs. Liquidity Providers provide liquidity to the APWine AMM and can earn revenue through swapping fees and liquidity mining rewards. The protocol also allows arbitrage opportunities for those who can take advantage of inconsistencies in interest rates.
The core protocol was audited by a combination of actors including Quantstamp, Peckshield, BlockSec and independent ones.