$APESYN (intended to be read as ‘apes in’) [with the full name Monkey Business] is an example of a “real yield” token; but NFT-ified.
For those who are wondering, real yield refers to a recent narrative surrounding crypto projects and protocols that distribute rewards/incentives in the form of stablecoins or in native assets like ETH or BNB; as opposed to rapid distribution of a doomed inflationary token with no further purpose.
As a part of the $DOWN Vault ecosystem; $APESYN has been created as a rewards mechanism that can offer appealing rewards without directly affecting the circulating supply of $DOWN. Keeping with the theme of NFT backed value, Monkey Business ( $APESYN ) is a fractionalized vault of ‘synthetic apes’; essentially Bored Ape Yacht Club derivatives, and pseudo-derivatives [projects launched by BAYC members, or NFTs that are/were only available to their associated apes’ owners.] A current total of 17 ape-related or derivative NFTs back the 50,000,000 ERC20 tokens*. If approved via majority consensus, additional assets can be added to the underlying vault of NFTs as well; making it possible for the $DOWN DAO and the wider community to directly contribute to the sustainability of $APESYN as a rewards mechanism and to the likelihood that a collector would want to acquire the assets.
*Alternatively, the ETH generated through the successful auction of the underlying assets would back the token, making it redeemable for the equivalent amount of ETH.
A few of the NFTs backing $APESYN, source: Opensea
Pursuant to our goal of establishing provenance for a new approach to ‘social tokens’, we recognize that LP rewards and similar incentives can have long-term negative effects by diluting the token supply, especially if/when high-volume yield farmers stake large dollar amounts then sell off rewards after they’ve exited their positions. While there’s nothing inherently wrong with seizing the available opportunities to profit (let’s face it, we all know that we’re all someone’s exit liquidity, as certainly as someone is ours.) this tokenomics system often results in a “race to the floor” and the rapid decline of your favorite new yield farm. When applying this scenario to a social token associated with a creator or community, it becomes exponentially more ineffective; since the impetus of a social token is to steadily establish and distribute value, supporting, and supported by, the growth of the token’s creators.
As with $DOWN Vault tokens, $APESYN has been issued via the Fractional protocol/platform (or Tessera if you’re reading this after their official rebranding) and can be bridged to/from Polygon by using ChainPort. Currently, active rewards will only be deployed on Polygon, to minimize the required time/fees resultant of active DeFi participation, but may eventually be expanded to Optimism, ETH Mainnet, or other chains as the $DOWN DAO grows and expands.
Since the primary purpose of $APESYN can be simplified to being a supporting component of the $DOWN ecosystem, upon issuance,
Official token details, block explorer links, available staking strategies, and other relevant information will be published on the $DOWN Vault token’s website or posted on the official Twitter account, @downtoken.
DISCLAIMER:
The $DOWN DAO, nor the author, are making any claims in regard to the value or accessible liquidity of the NFTs held by the $APESYN contract, or the future value of the token itself (since regardless of trading activity or market value, owning 1% of the $APESYN supply will always equate to 1% of the voting power for activities directly related to the underlying NFTs, and 1% of the ETH from the possible sale of the same) The above is an overview of an experimental method of providing tangible rewards to community members that are contributing to the market validity of the $DOWN Vault token and should not be taken as legal, financial, or any other kind of advice.
