Community Farming Phase 2

You may have seen our post yesterday regarding extending the farming event. We have been busy trying to decide on a fair solution, so we wanted to release all the details now. This extension will be focused on our more long term users, as well as extending the event for a long period of time to ensure a wide distribution of Apollo tokens to the community.

Phase 2 details:

• Total tokens: 6m Apollo tokens
• Apollo effective price: $0.25
• Percentage of rewards used to purchase Apollo tokens: 10%
• Lock up: Released linearly over one year, with a one month cliff.

Where are these tokens coming from?

These tokens will be coming from our Yield Farming incentives, with the full Community Farming Event distributing 9m out of the 50m tokens available. While this is a significant increase in the amount of tokens that will be available for this event, we believe this will present a great opportunity for our community to earn more Apollo tokens ahead of release, as well as increase the warchest revenue long-term.

Why are only 10% of rewards used to purchase Apollo vs 100%

The reason for this is two fold. Firstly when we were launching Apollo, we were asked about the effects of increased sell pressure of selling all rewards to Apollo. We confidently answered that we believe there would be almost no effect due to the amount of liquidity the pairs we have selected currently have. However, due to our current TVL, especially in our two largest vaults, we have to be far more aware of any potential adverse effects we could have on other projects. This will reduce the sell pressure from Apollo vaults on the underlying token by around 45%.

Secondly, the demand for Apollo tokens at the price we set has greatly exceeded our expectations. In order to have the farming event last for the desired time, we had to choose between raising the price of the Apollo token for the event, or reducing the amount of rewards distributed as Apollo tokens. We decided against raising the price as our main focus is to support our community who have already accumulated Apollo tokens.

The remaining 90% of rewards will be auto compounded back into your LP position.

Why is there a different lock up?

As mentioned, our main focus when creating this extension, was on our community who have already accumulated Apollo tokens through our initial Farming Event. In regards to our token distribution, we said there would be an initial supply of 5m Apollo tokens, which we will be honouring and therefore will be releasing the 2nd round community farming tokens linearly over one year, with a one month cliff.

How will this affect the Warchest revenue?

While this extension will lower the amount of tokens that will be available for distribution to bootstrap the Warchest after the TGE (from 47m to 41m, so about a 12% reduction), which is obviously not an insignificant amount, the value we can gain by retaining a large TVL should more than make up for this, both through the exposure Apollo DAO will gain, but also through the amount of revenue we can generate.

One of the things that made the biggest differences in our modelling of the Warchest revenue was:

1. Having a large TVL from the full launch of Apollo DAO
2. Gaining revenue early for the Warchest and then earning a yield on it.

With our increased TVL this should really help with both of these. This extension will also be focused on our more long term users as much as possible, providing them with the most benefits.

Will there be any delay between the two events?

There will be a slight delay on updating the dApp frontend (website), but the transition in rewards accrued between the events will be seamless. The way this works is that we will disable compounding the vaults during the transition period. This will mean that you will still be accumulating your rewards between the two events, which will then be auto compounded into your LP position and purchase Apollo rewards as soon as the 2nd event goes live. This means that if you wish to participate in the second phase of our community farming event, you don’t have to do anything with your vault positions. You are however, of course free to choose not to participate and can withdraw your LP tokens at any time. Please note that if you withdraw in the transition period you will forgo the rewards accumulated in the transition period.

Are there any additional benefits to this 2nd round?

While we believe these additional Apollo tokens should serve as a more than fair reward to our community members who wish to participate and stay with the platform, we are also considering releasing additional yApollo tokens to community members who stay in the vaults until TGE. However, we have not yet decided on the details of this, so it is subject to change. We will be releasing more information on this soon.

Join our Discord

Join our Telegram

Follow us on Twitter