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Auditors:
Halborn
Halborn
Audits:
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Price Market cap.
Last updated: Aug 14, 2023
Apricot Finance is a lending protocol supporting leveraged yield farming on Solana. The company started out as a Solana Hackathon winner and received strong support from partners like Solana Ventures, Delphi Digital, Lemniscap, and others who contributed to a $4M fundraising round in August 2021.
Some of the main features of the platform are – Apricot Lend, which allows users to deposit assets and earn interests, Apricot Cross-Farm or Apricot X-Farm, a service allowing assets to be borrowed for trading or leveraged yield farming, and Apricot Assist, which gives users the opportunity to pre-configure when and how automated deleveraging takes place.
In order to increase users’ access to additional yield without forcing them to sell any assets, the company auto-stakes and periodically compounds the LP tokens in users’ accounts thus earning them “3x LP farming yield right away”. In order to start farming LP tokens using borrowed assets, users need to deposit any supported platform tokens they already own.
Apricot Finance has developed a service called Apricot Assist to tackle the risk of liquidation, its main design is to help users manage their leveraged positions to reduce liquidation risks through an automated self-deleveraging mechanism.
Through the program, users can control when to start selling or redeeming collateral assets, as well as what and how many assets should be sold or redeemed.
The company utilizes a two-stage interest rate model to separate the computation of the interest rate into two stages; a detailed description of the mechanism can be found in the publicly available documentation of Apricot Finance.
To use Apricot Finance, wallets such as Phantom, Sollet, Coin98, Solflare, Math Wallet, Slope, or Ledger need to be connected to the Apricot Finance app. Once connected, users get access to a dashboard showing assets deposited and borrowed by them on Apricot. To the sides are a key portfolio metrics panel and a menu to navigate the Apricot app. Through it, users can access the main products offered by the platform.
Apricot Finance fees include a 20% performance fee on the earnings from LP token farming, as well as a one-time 0.075% fee when users borrow a token for which they already have a deposit position. Lending interests paid by borrowers are split between depositors who get 80% distributed to them and the rest gets collected as protocol fees.
Apricot Finance farming includes 15 pools, access to which can be gained by depositing the respective tokens, and if needed borrowing more of them from the protocol, in order to achieve a profit of approximately $X/2 dollar of each of the coins in the pair. The profit gets automatically deposited into the corresponding LP pool to generate new LP tokens, which are later deposited by Apricot into users’ accounts and used as collateral.
When clients of the project redeem their LP token deposits, the protocol stops farming the portion which is being redeemed, and if there are no borrowed positions in the currency to be withdrawn the funds are released, however, if there are any borrowed positions, the tokens are first used to repay them.
Liquidity mining rewards are claimable once every week, after a lockup period of 1 week, rewards from which are made available at the beginning of the third week. Users wishing to receive full liquidity mining rewards are required to hold 0.1% of their net deposit as APT in order to earn 100% reward emissions, which are otherwise halved.
The total amount of APT tokens is 1 billion and is distributed into 40% for liquidity mining, 20% for private sale with a 14-20 month vesting schedule, 16% in a two-year vesting schedule with a six-month lockup for the team and advisors, 10% for protocol incentives and ecosystem, 10% for reserve and a treasury and 4% are currently on a public sale. The initial circulating supply of the token is 6% and consists of the 4% distributed for a public sale, funds reserved for unlocked retro rewards, and initial token liquidity, as well as other protocol incentives.
The company aims to establish Apricot DAO for APT holders to propose and vote on decisions concerning the development of the protocol and the levels of its fees.
In the near future, Apricot Finance will release Assist 2.0 which will allow users to cover a wider range of market scenarios and provide stronger protection against liquidation. These features will require APT staking to be enabled. More details are expected with the release of Assist 2.0.
The Apricot Finance team is led by co-founders Ace Tsui, who is mainly in charge of overall operations and business development, and Cecilia Wu, leading overall strategy product direction, and other development. In an AMA, Cecilia Wu described the founding team behind the platform as consisting of less than five people knowing each other for “close to 10 years since back in high school”, and coming from diverse backgrounds.
Apricot Finance was audited by Halborn, and the arrival of the report was officially announced by the company in October 2021, however, it hasn’t been shared publicly yet.
Apricot Finance smart contract addresses have not been made public.
The company completed an $800,000 seed round in June 2021, receiving interest from investors such as Chris McCann, Genblock Capital, NGC Ventures, DFG, CMS Holdings, CryptoJ Capital, Coinsights Ventures, and others. In August 2021, the company had a $4M fundraising including Delphi Ventures, Lemniscap, Solana Capital, Komorebi DAO, SkyVision Capital, and others.
Upon mainnet launch, the Apricot app announced their partnerships with the wallet platforms – Phantom, Sollet, Coin98, Solflare, Slope, and Math. The company is also currently working closely with Terra to bring LUNAw incentives to the USTw pool on the Apricot platform.
The developers are working on the creation of an In-App Swap, by integrating with DEX partners to make the swap feature available within the Apricot app. Along with this product, the team estimates the release of a pack of perks consisting of Assist 2.0 which will provide more flexibility to the Apricot Finance protocol users. Another prominent feature planned to be released soon is Transaction History & PnL Tracking which will help users easily monitor and adjust their farming positions accordingly. Apricot Finance is working on Increased Token Utility and Governance – the company plans to implement the requirement of holding APT to receive full benefits of Assist 2.0 without additional fees. Additional Liquidity Venues will be made possible throughout partnerships with “industry leading market maker and APT”. All updates are planned to be released in Q1 2022.
The platform plans to adjust the architecture to its token emissions, staking, and liquidity mining rewards, improving the economics of APT and the platform use.
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Last updated: Aug 14, 2023
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