Apollo’s New Volatility Harvesting LSD Vaults coming this week!

Bruce -

Welcome! New week, new Vaults.

We are thrilled to announce that Apollo will be launching our next generation of new LSD Vaults this week on Neutron, including:

  1. wstETH/ETH unlocked
  2. stATOM/ATOM
  3. ATOM/stkATOM
  4. stDYDX/DYDX
  5. stTIA/TIA

We will also be launching some non-LSD Vaults including:

  1. APOLLO/wstETH
  2. APOLLO/ASTRO
  3. APOLLO/USDC
  4. APOLLO/NTRN
  5. stTIA/NTRN

Our new LSD Vaults will auto-compound rewards as our previous Vaults do, but these Vaults will also enable our new Volatility Harvesting for LSDs and will have the following parameters:

  • 1% Exit fee (shared with all remaining Vault users).
  • 15% Performance fee (Used to incentivise Apollo’s growth).

If you haven’t read our recent post on “Supercharging LSD Yields on Cosmos - Part II, Becoming the Captain of Sustainable Yield, we would recommend that you check it out. If not, the TLDR is: Apollo will enable harvesting the natural volatility of Crypto to provide a higher and more sustainable yield for our LSD Vault users (think Supercharged trading fees).

The way we will accomplish this

Apollo will pair our LSD Vault Tokens “(LSD)VT” (a tokenised yield position from any of our Vaults) and pair this with APOLLO in 3/3 Tax pools. The volatility between these two assets will drive volume through our Vaults, which will lead to higher yields for our LSD Vault users (both from the exit fee and also from higher trading fees).

Users who provide liquidity for (LSD)VT/APOLLO will receive 50% of all buy taxes through this pool to incentivise them to be LPs.

*Once the Vaults have been launched, we will have to go through Astroport Governance to launch our (LSD)VT/APOLLO Tax Pools (roughly 1 week after the Vaults).

Summary

If you want to enter our new LSD Vaults, what you need to be aware of is that there is a 1% Exit Fee, so please take that into consideration. However if you plan to be a long term depositor, this will work to your advantage as you will receive your share of this every time someone leaves the Vaults, or executes an arbitrage opportunity through the Vault.

Volatility is the only certainty of Crypto and we believe that harnessing volatility is the most effective way to provide long term, sustainable yields to LSD LPs, which are critical to the continued growth of Cosmos DeFi. We are excited to launch these new Vaults and to begin working on integrating them throughout Cosmos DeFi.