# APY Tokens

## Overview

The APY token is the APY.Finance governance token. As platform's features are built out, the token will be used to govern them.

{% hint style="info" %}
APY token contract address: 0x95a4492F028aa1fd432Ea71146b433E7B4446611
{% endhint %}

{% hint style="info" %}
**Token links**

* [Coin Gecko](https://www.coingecko.com/en/coins/apy-finance)
* [Etherscan](https://etherscan.io/token/0x95a4492F028aa1fd432Ea71146b433E7B4446611)
* [CoinMarketCap](https://coinmarketcap.com/currencies/apy-finance/)
  {% endhint %}

### Token Specs

| Field        | Value       |
| ------------ | ----------- |
| Type         | ERC-20      |
| Symbol       | APY         |
| Decimals     | 18          |
| Total Supply | 100,000,000 |

## Use Cases

APY token will be developed in three stages. Each stage releases new token features that grant greater control over the entire APY.Finance system.

### **Stage 1: Updating system-wide parameters** <a href="#id-4b60" id="id-4b60"></a>

APY token holders can vote to change system parameters such as **fees, risk score, and rebalance thresholds**.

**Fees:** The percentage of yield generated that will go to APY token holders for maintaining the protocol. This is initially set to 0.

**Risk Score:** Every strategy will have an associated risk score. APY token holders decentralize risk assessment by proposing and pushing risk score updates as the landscape changes.

**Rebalance Thresholds:** Determines how aggressive or conservative the strategies should be when rebalancing for higher yield.

### **Stage 2: Updating existing strategies** <a href="#b398" id="b398"></a>

APY token holders can vote to change strategy specific parameters such as **locking periods, collateralization ratios, and account segmentation.**

**Locking periods:** Some strategies may require locking of assets to boost yield. And example of this is Curve vote-locking.

**Collateralization ratios:** Any time leverage is used, a safe buffer of over-collateralization must be maintained to avoid liquidation. This can be more aggressive for higher yield, or more conservative for less risk.

**Account segmentation:** A strategy can interact with a protocol using any number of accounts. This allows for techniques such as the staging of different locking periods.

### **Stage 3: Proposing new strategies** <a href="#a322" id="a322"></a>

APY token holders can vote to propose new strategies for the strategy portfolio.

These proposal mechanics must be carefully designed to prevent conflicts of interest that arise from a strategy's influence over large amounts of capital.

## APY Token Distribution

![](/files/-MOhav-9c5GvD13jFaVY)

| Distribution                    | Description                                                                                                                                         |
| ------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- |
| Seed Investors                  | <ul><li>20,000,000 APY tokens (20.0%)</li><li>1 year vesting</li></ul>                                                                              |
| Strategic Investors             | <ul><li>16,500,000 APY tokens (16.5%)</li><li>1 year vesting</li></ul>                                                                              |
| Team & Advisors                 | <ul><li>20,000,000 APY tokens (20.0%)</li><li>4 year vesting, 1 year cliff</li></ul>                                                                |
| Community Initiatives           | <ul><li>12,300,000 APY tokens (12.3%)</li><li>Initiatives will benefit community developers who participate in the APY.Finance ecosystem.</li></ul> |
| Public Liquidity Mining Rewards | <ul><li>31,200,000 APY tokens (31.2%)</li><li>Rewards will benefit users and stakers who participate in the APY.Finance ecosystem.</li></ul>        |


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