Launching of Apollo LP Vaults v2 for Cosmos

Launching of Apollo LP Vaults v2 for Cosmos

While the total collapse of Terra and the ecosystem resulted in a slightly more volatile launch for Apollo than we would have hoped, it has taught us a lot and sharpened our focus, so we are thrilled to be relaunching Apollo in the Cosmos.

Apollo’s full relaunch will be kicked off with the deployment of our completely redesigned LP Vaults for Cosmos. These Vaults have been designed to be “AMM Agnostic”, meaning they can quickly and easily be deployed to any  AMM DEX, with initial plans to deploy these Vaults on Osmosis and Astroport, as well as other Cosmos DEXs in the future.

The first stage of our launch will be deploying our LP Vaults on Osmosis

Apollo's LP Vaults should be thought of as building blocks for more advanced yield strategies, such as the Leveraged Liquidity Proving that Apollo will be launching in conjunction with Mars Protocol on Osmosis at the start of 2023.

Leveraged Liquidity Positions require depositing assets into a vault which then provides liquidity on a user’s behalf. These assets may then be used as collateral via Mars’ Rover Credit Accounts to increase the value of the liquidity provided. The vault also auto-compounds rewards into the pool to maximise yield.
In the event of the pool’s value dropping below a declared safety threshold and the position being liquidated, the collateralised assets within the vault are required to be automatically sold. As these assets will be locked in order to receive liquidity incentives this is not possible without allowing the vault addresses to directly bypass this restriction and unlock assets immediately rather than waiting for the bonding period to pass.

You can find our signaling proposals here:

  1. Allow Apollo DAO LP Vault Contracts to be Uploaded
  2. Whitelist Apollo Vaults for ATOM and USDC

Secondly our v2 LP Vaults will provide the same benefits as our original vaults on Terra, as well as a number of new benefits, such as providing depositors with liquid Vault Tokens that will help enhance the composability of our vaults, such as the ability to borrow or mint stables against your yield earning positions in the future. While there will be limited use cases for our vault tokens on release, we will continue to improve the use and functionality of these tokens through new strategies and working with partner protocols.,

Beyond this, our Leveraged Liquidity Provider Vaults Apollo will continue working on a range of more advanced yield strategies that can be created on top of these vaults. Just some of these would include:

  • Liquidation and position management
  • Fixed leveraged tokens
  • Hedging of price exposure from LPs or rewards

This is just the start for Apollo yield strategies, and are already beginning work on more complex strategies.

The Future vision of Apollo

Apollo’s primary focus in the short term is to create more advanced yield and automation strategies, improving the user experience and yield opportunities of Cosmos.

The long term aim for Apollo is to become the Asset Management Portal and on-chain bank account for Cosmos, improving the user experience through consolidation and automation. Although the App Chain vision of Cosmos has the ability to offer many advantages over a single execution layer, as the Cosmos expands and the number of app chains grows there is a strong risk of increasingly fragmenting the user experience. While technological innovations such as IBC and Interchain Accounts can to some degree improve this experience they will be unable to completely reverse this effect.

Apollo aims to become the go to hub for Cosmos, where users can not only access opportunities from a variety of Cosmos chains, but combine the benefits of each individual chain into one experience.  Apollo can be thought of as an on-chain bank account for retail users, protocols and institutions alike, providing asset storage, yield access and tools to make the best use of their funds.

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