I. Market Context

It is undeniable to state that 2020 is the year of DeFi and Yield Farming. From the miraculous increase in the number of Yield Farming Platforms to the extraordinary rise in the price of tokens related to Yield Farming/DeFi. Even at the time of writing, the entire market is bearish (October 2020), DeFi is still rising in TVL and Volume.

However, when the market is bearish, there will be many problems that must be addressed. I wrote very carefully in the article on DeFi issues. Of course, when there is a problem, someone will take action to solve it. Unsurprisingly, APY Finance is one of them.

II. What is APY Finance?

APY Finance identifies itself as a multi-tier platform in their docs, which makes Yield Farming easier for most users. Users only need a simple operation to use APY Finance. Its system will automate Yield Farming with optimal cost and highest return.

APY Finance uses APY Token (Governance Token) to encourage the community to support the project. The Public Liquidity Mining project was launched at the end of September and early October and received positive feedback from the community. In just the first hour, the community locked more than $67 million TVL into the APY Finance system. What an impressive number!

Why is APY so successful?

III. What problem does APY solve?

DeFi is a new trend, and in the eyes of many people, including myself, it will continue to grow. However, it faces many problems.

The first is the Farming Strategy that varies in each project. From SNX, DAI, BAL, COMP...every project has different yield farming strategies, which are very complicated.

I cannot fully follow all the strategies of all parties and full-time farming.  It takes a long time for Yield Farming to be practical and also requires deep knowledge regarding both blockchain and economics.

Another problem with DeFi is that you need to "move" a lot to have efficient farming. It means you have to constantly switch between pools and pay for the gas cost.

The presence of APY is to solve these two problems.

IV. APY products.

APY claims to be born with a desire for a simple experience known as "Yield Farming for everyone". To this end, APY has the following products:

1. Liquidity

Like many other farming platforms, a substantial part of APY is the liquidity pool. According to the APY's advertisement, users only need a single deposit to start farming, unlike other platforms that require 2-3 intermediaries/swaps.

The APY's liquidity pool is fully automated and will automatically generate the highest profits for users with payment in APT tokens (similar to Balancer's payment in BPT).

APY will use Smart Routing to help users achieve this.