Supercharged stTIA/TIA Vault - With Time Gated Entry

Bruce

• 3 min read
Supercharged stTIA/TIA Vault - With Time Gated Entry

Welcome to Apollo’s New stTIA Vault! If you read our post yesterday, you know we are launching a number of new LSD Vaults that utlise Volatility Farming to boost yields.

One of these is our stTIA/TIA Vault (on Astroport/Neutron) and due to the delivery of rewards, this one will be a little different, but very cool (in our humble opinion) and believe we will be able to offer the highest yielding TIA Vault there is.

But please read carefully before aping in.

stTIA/TIA Vault

Deposits:

  1. You will have 2 weeks to deposit stTIA/TIA into the Vault and after that, deposits will close,
  2. When you deposit you will receive a (stTIA/TIA) Vault Token and in 6 months STRD rewards will start to be compounded into the Vault and will continue for the following 6 months (1% of the Vault Tokens = 1% of the rewards)
  3. We will also be creating a pool for (stTIA/TIA)VT/APOLLO, which will be the only way to enter the Vault after deposits close.
  4. Deposits will reopen once the STRD rewards have been claimed.

Withdrawals:

  1. You will always be able to withdraw from the Vault at any time, but you will forfeit any STRD rewards you have accumulated. These will be distributed to remaining Vault users when they are claimed.
  2. The (stTIA/TIA)VT/APOLLO pool will provide an addtional way to exit the Vault and (should based on the market) price in “accumulated but not claimed STRD rewards - time to claim”.

Incentives:

  1. Our TIA LP Vault will receive additional incentives from Apollo (on top of the NTRN, ASTRO and STRD) for one month.
  2. All rewards will be compounded in stTIA/TIA, maximizing your TIA and your future regards.

Fees:

  1. Same as our other Vaults, our stTIA Vault will have a 1% Exit Fee and 15% Performance Fee
  2. 100% of the Exit fee will go to the remaining Vault users.

stTIA/TIA Vault Game Theory

Bootstrapping

Apollo will be funding some initial incentives for 1 month to attract stTIA/TIA into our Vaults. This will ensure the Apollo Vaults will provide the highest yield for stTIA LPs and will help us bootstrap some STRD rewards.

(stTIA/TIA)VT Value = Underlying TIA + (upcoming STRD rewards - time to claim)

Because the STRD rewards will be shared pro rata with Vault Tokens, Vault tokens will track not only the underlying TIA price, but also the future STRD rewards. As no more Vault Tokens can be created, users can work out the minimum share of STRD rewards per Vault Token.

This means users should be able to “claim the value”(- fees) of their future STRD airdrop (as determined by the market) before the rewards are released, by selling their (stTIA/TIA)VT to APOLLO.

The closer it comes to the claiming of STRD, the more that (stTIA/TIA)VT will increase in price vs TIA.

Withdrawals = (stTIA/TIA)VT Value UP.

After two weeks there will be a max cap on the number of (stTIA/TIA)VTs (as no more deposits). However, withdrawals will remain open, so the number of (stTIA/TIA)VTs can decrease.

This means that when users withdraw from the Vault (and forfeit their STRD rewards), the STRD rewards are shared amongst fewer Vault Tokens. Therefore the more withdrawals, the more valuable the Vault Tokens become.

Users will also receive their pro rata share of the 1% exit fees for remaining in the Vault.

The only way to enter the Vault will be to buy (stTIA/TIA)VT through APOLLO.

This will encourage more trading through the (stTIA/TIA)VT/APOLLO pool, meaning increased fees to LPs, meaning deeper liquidity, meaning more demand for both APOLLO and stTIA, all of which encourages more trading.

Who is this Vault for?

Long Term TIA Holders: If you plan to hold your TIA until the STRD airdrop completes, our Apollo Vault will offer the highest yield and max amount of TIA possible. This is because:

  • Additional Rewards from Apollo
  • Some capital will leave the Vault, paying a 1% exit fee and boosting your share of STRD rewards,
  • Autocompounding of all rewards into more TIA LP.

Short Term TIA Farmers: As Apollo will be boosting the yields for 1 month (on top of Astroport yield), short term TIA farmers can farm this additional yield and then exit via withdrawals or selling the Vault Token.

TIA and APOLLO Holders: Holders of both tokens will be able to provide LP and earn 1.5% of trading volume through the pool, while simultaneously earning maximum yield on their TIA.

STRD Speculators: If the STRD rewards are mispriced by the market, a user could purchase (stTIA/TIA)VT, while shorting and equal amount of TIA until they could claim the STRD rewards.

What can you do with your (stTIA/TIA)VT?

  1. Hold for maximum TIA Yield
  2. LP with APOLLO to earn additional trading fees
  3. As liquidity grows, we would love to see our Vault Token integrated into other DeFi applications.

Summary

We believe that this stTIA/TIA Vault provides an exciting and attractive vault for users looking to maximise their TIA position and yield from protocols competing for liquidity. While demonstrating some of the interesting game theory that can be created with Apollo's new Volatility Farming Vaults.

Our stTIA/TIA Vault will be launching this week!

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