APWine

Generally, we expect hedgers will sell future yields when rates are high and borrowers will hedge borrowing rates when they are low. Traders will buy and sell future interest rates because they gain upside exposure without having to own the base asset. The ability to speculate on the yield of primitive assets such as wrapped Bitcoin and Ethereum without having to purchase them will be very useful to users as these assets continue to rise in price.

Generally, we expect hedgers will sell future yields when rates are high and borrowers will hedge borrowing rates when they are low. Traders will buy and sell future interest rates because they gain upside exposure without having to own the base asset. The ability to speculate on the yield of primitive assets such as wrapped Bitcoin and Ethereum without having to purchase them will be very useful to users as these assets continue to rise in price.

APWine is a protocol for tokenizing yield and an AMM for trading tokenized yield. The concept and function of tokenizing yield enables speculating, hedging, borrowing, and leveraging assets with new (to defi) strategies. Tokenizing yield has motivated several teams in the DeFi space, including yours truly, to develop products that will serve these functions. This article will again explore the basics of APWine, how a user interacts with a future-yield market (AMM), and highlight a few basic yield strategies users can consider. Drinking wine is optional, though highly recommended, so relax with a glass of wine while you explore the future of future yield markets!

The purpose of the APWine AMM is to incentivize the pooling of yield-generating assets and to create a yield market for DeFi. In addition to speculators and arbitrageurs of yield, the APWine AMM will be very useful for “classic” yield farmers who are looking to safely generate a passive yield from two streams of revenue. Liquidity providers on the APWine AMM receive yield accrual generated from their initial collateralization and secondly, they will receive a portion of the fees generated by the AMM from their associated liquidity pool. There is also the ability to farm APW through liquidity provisioning by staking.