Terra is a blockchain protocol developed to strengthen the infrastructure of stable payments through stablecoins and decentralized finance (DeFi). The project relies on a set of stablecoins that are linked to various fiat currencies and their stable price is maintained by an algorithm and the LUNA token.
This ecosystem is supported by several systems and protocols based on new projects that make it more robust and ergonomic.
One of these protocols is the Apollo DAO (https://app.apollo.farm/), the first yield management platform that leverages complex and cross-chain DeFi strategies, exploring NFT gamification and other innovative savings products. In addition, it has the DAO branch to govern an equity war. It is designed for DeFi users, created by DeFi users and aligns with the broader mission of making DeFi more accessible.
What is Apollo DAO?
Apollo DAO (https://app.apollo.farm/) is a performance management platform created by DeFi users for DeFi users, consisting of a protocol that facilitates safe and profitable automatic compounding returns.
Apollo Dao has three main features that make the system unique and interesting:
- Maximum returns: on the one hand, Apollo DAO offers optimal autocompounds in arbitrary yield agricultural rewards that automatically increase deposited assets while earning APOLLO tokens.
- Complex strategies: In addition, the project has plans and designs for complex vault strategies, ranging from UST yield aggregation to a LUNA strategy that uses multiple vaults to maximize the profitability of airdrops and bounties.
- Secure vaults: Apollo DAO has a constant focus on safety and security and has therefore been built in Rust from the ground up. All vaults are fully audited prior to release.
The main tool for Apollo DAO’s success is its own Apollo token, which is designed to benefit from the success of Apollo DAO, its DeFi products, as well as the success and growth of the broader Terra ecosystem and other L1 chains such as Solana, Cosmos and Ethereum.
The Apollo token is characterized by its limited total supply of 100 million tokens, which will be distributed over approximately the next 3 years. The objectives of the Apollo token distribution are determined and aimed at long-term financing of the project, maximum decentralization of the token and the Apollo DAO economy, and incentivizing holders and users of LP tokens.
The Apollo DAO platform will launch several protocols, with which users can get APOLLO token. The idea is that each phase will have its own design and its specific amount of tokens to be distributed.
The first protocol to be launched by Apollo is the Automatic Composite, which will be used to distribute Apollo tokens, bootstrap Warchest and provide betting vaults for Apollo token holders.
Having Apollo DAO tokens has several benefits that could be of your interest.
The main of them are based on the performance optimization platform and include:
Token holders will have the ability to choose in which “Terraform” vaults and at what level to set the fixed rate distribution.
- Apollo LP Vaults and zApollo:
Any user will be able to add liquidity to different pairs available on the platform, with the goal of aligning incentives between the Apollo protocol, token holders and LP tokens.
- Community farming:
Community farming consists of using 10% of the rewards earned from LP tokens to purchase Apollo tokens at $0.25 per token. This token will be linear over a 1 year time period, with a 1 month cliff. The remaining 90% reward will be self-compensated.
To best accomplish this, Apollo token holders and Apollo LPs will be able to bet and lock their Apollo tokens for zApollo tokens, using a tokenomics model similar to projects like Curve’s veCRV, while providing the same benefits to Lps. The idea is simple, the longer the tokens or Lps are locked in, the greater the reward from zApollo.
How to use Apollo DAO Dapp?
As said in the previous chapter, Apollo DAO (https://app.apollo.farm/) is a performance management platform created by DeFi users for DeFi users, consisting of a protocol that facilitates safe and profitable automatic compounding returns.
At the current stage of the project, Apollo Dao can be used through different vaults. The steps are easy and quick to perform as in any other Liquidty Mining and LP platform, but still with a more user-friendly interface.
In this tutorial, you will learn how to use Apollo DAO Dapp to invest in LP tokens inside Terra ecosystem and obtain not only LP gains but also APOLLO tokens.
STEP 1: Connecting to Apollo DAO Dapp
The first step is to connect the wallet to Apollo DAO Dapp.
STEP 2: LP Vault selection
Then, select the vault you want to provide LP and add LP tokens of the selected pair. In the example you will see how to add LP tokens from ANC-UST. As you will see, it is only necessary to use the USDT tokens of Terra, the UST to add LPs, since the platform itself already uses part of the deposited to make the swap of the other LP pair, great advantage.
Note: For those of you who do not know what is the UST token, it is a stablecoin that is generated by burning $LUNA tokens equivalent in USD. This is the process called Seignorage. Thus, when you burn $LUNA you get the US dollar equivalent in $UST. Through it, any user can now enter the Vaults within the Apollo DAO protocol.
STEP 3: Deposit Confirmation
After selecting the vault, the Apollo DAO Dapp will show a pop-up window asking you to confirm the transaction. We will need you to confirm it and then sign the contact.
We will wait until deposit is confirmed (see below image).
STEP 4 (optional): Portfolio
Once this is done, you can view your portfolio from the portfolio menu bar by clicking on the “Portfolio” icon. There you will be able to see the Vaults you are participating in, as well as the total APOLLO tokens you are acquiring. You will also be able to get the DPR and APY percentages of your earnings.
Note that currently, for users who participate in any of the accessible vaults, they will automatically participate in the community farming event! What does this mean?
STEP 5 (optional): Community Farming
As stated before, community farming consists of using 10% of the rewards earned from LP tokens to purchase Apollo tokens at $0.25 per token. This token will be linear over a 1 year time period, with a 1 month cliff. The remaining 90% reward will be self-compensated.
There will be different community events run by the Apollo Dao team. We are currently in phase 2. This phase is characterized by obtaining/buying APOLLO through the underlying agricultural assets of the Vaults, after depositing assets in these Apollo Vaults. Phase 2 of the APOLLO Community Farming Event will continue until all 6 million APOLLOs have been farmed, with all APOLLOs locked until the end of this event. All money raised from the event will be used to start the Warchest (explained in the next section of this post).
You will be able to see your APOLLO tokens earned during the phase in the “Community Farming” section. Here an example:
Note: After the genesis token event, participants in Phase 1 of the Community Farming Event will be able to claim 50% of their APOLLO, with the remaining 50% to be distributed during the first year. For Phase 2 of the Community Farming Event, participants will be able to claim their first allocation 1 month after the token genesis event, and the remainder will be distributed over the next year.
STEP 6 (coming soon): Warchest
Warchest will be an equity pool funded by the proceeds received by the Apollo DAO and managed/deployed by Apollo token holders. The team will provide tools to the community to effectively utilize this capital. Apollo token holders will have the power to decide which farming strategies to implement using Warchest.
The Apollo token is the core of Apollo DAO that is designed to benefit from both the overall success of Apollo DAO and to derive value and benefit from each of the DeFi protocols. With the Apollo DAO platform, you can already participate in various Vaults and earn rewards from the APOLLO token, with the goal of earning a return on an early project that has Apollo DAO’s long-term goal of becoming fully decentralized and owned by the Terra community.
The aforementioned steps to become a Apollo DAO contributor are clear and the interface looks like very user-friendly, meaning that participate in Apollo protocol is so quick and easy and the platform is ready to become high and important inside Terra ecosystem.
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