AR★IP#1: Mercury Update

YieldRocket

5 min readDec 28, 2021

TLDR:

- Vaults gain 100% of native assets instead of 70% native, 30% SPACE.

- Fee structure has been revised and is more attractive and competitive (5% performance fee instead of 30%).

- Space emission is controlled by xSPACE holders, they decide which pool redirects inflation.

- xSPACE holders can increase their SPACE rewards up to 2.5x by locking their SPACE.

Summary

This is a proposal to restructure ApeRocket’s vaults and structure to make them simpler, flexible and sustainable, while remaining community-focused and independent of the volatility of embedded assets.

The goal is to make the SPACE Token a valuable asset to hold, and the platform an attractive platform to deposit assets regardless of market conditions (bull/bear market).

Background

Many community members have expressed concerns about the platform. Bunny Tokenomics works well when the market is up and the embedded assets are thriving. (e.g. Cake, Bunny) It becomes more difficult to recover when this is not the case. This has been the case in recent weeks, as people enter a downtrend and tend to sell their assets, ApeRocket is doubly affected, both via its own token and the other tokens deposited in it.

Goals

With this proposal, we want to make the platform a long-term investment for small and large holders. In addition, it would allow us to move towards multi-chain in a much simpler way. Thus, we will get a more manageable and scalable system than the current one.

How can we do this ?

The first concrete action to be taken is to unbundle the SPACE earnings and the Vaults. Vaults will no longer be able to deliver SPACE. Indeed, instead of minting the SPACE token according to the profits made by the vaults, it will have a fixed rate and thus a linear generation. This allows us to protect ourselves permanently from flashloans, as exploiters will no longer have any way to mint tokens indefinitely via price manipulation.

In addition, the vaults will provide attractive returns to users as now, but without the SPACE rewards, and a revised fee structure. The two watchwords being: more rewards in native tokens and rarefaction of SPACE tokens.

Fee structure:

- 30% performance fee -> 5% performance feen redistributed on weekly basis to xSPACE Holders

- 0.5% fixed withdrawal fee

In our opinion 5% is an honest fee that will serve to provide revenue for xSPACE holders and attractive earnings for users who will not feel cheated by earning 70% of the native token and only 30% of SPACE. They will now earn 100% of the native token, including tax, and sometimes even more than the native farm (we won’t reveal all our secrets here…but trust us).

So overall, we think this is a good solution in order to meet users’ expectations while protecting the value of SPACE tokens as much as possible.

How to earn SPACE ?

When you deposit assets into ApeRocket vaults, you receive a receipt token proportional to your share in the vault, these are called arTokens (arBANANA when you deposit into the Banana vault for example).

To earn SPACE in addition to your returns, you must now deposit arTokens into the corresponding pool in the space distributor. It would also be possible to do this directly if you wish when you deposit your assets into the vaults to save you another transaction, but we allow you to not choose to put it into play in order to leave room for some partnerships.

Indeed, this new system leaves room for possible partnerships where you could stake your arTokens and receive assets from other tokens in exchange. We will keep you informed when possible partnership opportunities arise.

Thereafter, the space distributor will allocate an amount of SPACE to arToken pools each day. How much is the allocation? That’s up to you.

The xSPACE holder will need to vote on the “Vote” page each week and choose the pool in which they wish to allocate their voting power. Of course, the more xSPACE you have, the more important your vote will be in the count.

In addition to that, xSPACE Holders can boost their individual rewards. With the locking mechanisms, they can earn up to 2.5x their SPACE Rewards.

Benefits

Multichain made easy. With the current system, if we wanted to go multichain, it would be difficult because we would have to deploy a new token, and be stuck with 1 Token per chain. With the new model, we can go multichain in an easier way, bridging the current SPACE. It would accrue values from every chain ApeRocket is deployed on.
Space Token value and utility. The ratio of utility/emission would be a lot better. SPACE will become rarer and directly impact your earnings.
More vaults. Without massive SPACE emissions, we would be able to launch a lot more attractive vaults that would benefit SPACE holders and Vault users. xSPACE holders would be able to vote in order to add them into the SPACE Distributor and earn additional SPACEs on top of it.
Money Legos. With the current system and due to security concerns, it’s a lot harder for other projects to plug into our ecosystem. With the new structure, safer and simpler, they would be able to integrate ApeRocket into their projects and thus increase our reach.
DAO Focused. We aim to have a big community of contributors, and by removing a lot of constraints inherent to the Bunny Tokenomics, it would allow us to iterate faster and safer.

Counterpart

Every aspect of this proposal is aimed at bringing ApeRocket to new highs. In order to focus on it at 100%, if this proposal passes, we would have to cancel MilkyWay (and refund anyone that purchased NFTs and/or a Server Boost on Discord as of today). The goal of MilkyWay was to create an incentive revolving around a bonding system, but in the end we could have ended up with two dead projects. Besides, we are very attached to the relationship we have with ApeSwap and we do not want to deteriorate it.

ETA

If this proposal passes, you have nothing to do until we say so. We’ll launch features as we go, step by step. Follow our socials to keep you updated.

Compensation

Regarding the pSPACE compensation, it would take place on the BSC and it is scheduled for mid-end January. Users affected will be able to claim their compensation on the corresponding page, we’ll communicate more about it soon on our social medias once it’s live.