Yield Modes
Rebasing Mechanism
ApeChain's yield-bearing tokens, such as apeUSD and apeETH, support a rebasing mode where users’ balances increase periodically in line with the yield generated by the underlying assets. For example, apeUSD balances will grow in real-time with sDAI yield, reflecting the underlying DAI accrual on Ethereum.
Scaling & Security
Aspect | Details
| Aspect | Details |
|---|---|
| Scalability | The on-chain logic for yield routes is generalized, allowing it to scale efficiently with increased volume and new yield-bearing tokens. |
| Security | Yield-bearing tokens are pegged to underlying rebasing assets, ensuring no risk of undercollateralization (e.g., 1 apeUSD = 1 sDAI). |
| Security Dependencies | Security relies on the underlying smart contract risk of yield protocols and the Decent wrapper. |
| Messaging Security | Messaging between chains is managed securely via LayerZero. |
Canonical Bridging
ApeChain will utilize two canonical bridge routes:
| Bridge Route | Purpose |
|---|---|
| LayerLeap | For native yield from Ethereum. |
| Standard Orbit | From Arbitrum, offering an alternative for bridging, especially for non-yield-bearing ERC20 tokens. |
Basic and Non-Functional Requirements
Functional Requirements
| Requirement | Details |
|---|---|
| Supported Assets | Users can deposit APE, USD stablecoins, and ETH on ApeChain to generate native yield. |
| Rebasing Mode | All yielding assets must support rebasing, ensuring users do not need to manually claim their yield. |
| Cross-Chain Deposits/Withdrawals | Assets can be deposited from and withdrawn to Ethereum mainnet. |
Non-Functional Requirements
| Requirement | Details |
|---|---|
| Decentralized Yield Sources | Yield must be generated from credibly decentralized sources. |
| Decentralized System Control | The yield system's operation and governance must be decentralized. |
| APE Yield via ApeStake | The current ApeStake mechanism will be used to generate yield for ApeCoin without modifications. |
| Risk Management | The system should not expose users to risks beyond the inherent smart contract risks of the underlying protocols. |
Yield Sources and Mechanisms
| Yield Type | Mechanism | Governance |
|---|---|---|
| DAI Yield | Stablecoins bridged into ApeChain are converted to DAI and deposited into sDAI, accumulating yield based on the MakerDAO savings rate. | Governed by DAI’s governance processes. |
| Lido Yield (ETH) | ETH bridged into ApeChain is deposited into Lido to generate yield, utilizing wstETH to align with rebasing token behavior. | Due to Lido's withdrawal delay, users can either swap Lido ETH to native ETH via a DEX aggregator or withdraw as stETH directly. |
| Ape Yield | ApeCoin deposited into ApeChain is staked via ApeStake, with yield distributed based on the user’s share of tokens in the pool. | Yield must be claimed via a discrete contract call, managed by the bridge contract. |
Yield Accounting and Governance
Rates
| Token | Yield Rate |
|---|---|
| APE | 11% |
| ETH | 2.5% |
| USD | 6% |
Rebasing Modes
ApeChain will support three configurable rebasing modes for yield-generating tokens:
| Rebasing Mode | Description |
|---|---|
| Void | No yield is earned; the balance remains unchanged. |
| Automatic | The balance automatically increases as yield is earned. |
| Claimable | Yield accumulates separately and can be claimed, but the balance remains unchanged. |
Conclusion
ApeChain’s native yield system represents a significant advancement in the space, providing a decentralized, automated yield mechanism for bridged assets. By leveraging established protocols, ApeChain ensures sustainable yields and user-friendly operation through careful governance. This spec overview should serve as a guide, enabling developers and users to effectively interact with the native yield system as ApeChain continues to evolve.