AIP-393: Proposal to stake 2.5 Million $APE into the Cyan ApeCoin Vault 

ABSTRACT

This proposal aims to have 2.5 million $APE staked directly into the Cyan ApeCoin Vault from the ApeCoin DAO.

Cyan is a DeFi protocol enabling users to Buy Now Pay Later, Borrow, Lend, Stake, and truly retain their ownership through the power of our wallet, allowing users to take advantage of Wallet Connect.

The $APE provided by this grant will be staked to the Cyan ApeCoin Staking vault until the emissions expire, upon which all funds will be retained by the DAO. This $APE can safely be used to increase membership, spread awareness, and expand the ecosystem by putting $APE directly into the hands of more BAYC and MAYC users who have little to no $APE and no exposure to the DAO. We’ve battle-tested and have proven the vault increases participation in the ApeCoin DAO.

Our current users have created AIPs, voted on AIPs, and dived deeper into the ecosystem by developing stronger relationships and exploring deeper parts of the community. With Cyan, we can incentivize users to participate at no cost to them, while generating profits for the ApeCoin DAO. Cyan will pass through 100% of the yields from the 2.5 million $APE to the DAO. Cyan will also share 50% of the revenue generated by staking activities with the DAO. At the end of the ApeCoin staking emissions schedule, the 2.5 million $APE will be returned to the DAO.

How is Cyan able to do this through our protocol? Explainer here:

The Cyan ApeCoin Vault provides multiple ways to earn yield. Staked $APE is always earning yield as the following logic is applied:

• $APE is paired to BAYC/MAYC/BAKC owners who want to stake but don’t have $APE. The generated yield is shared between both parties.
• $APE which isn’t utilized for the above activity are directly staked into Horizen Labs staking contracts
• Staking positions are continuously compounded on a bi-weekly basis. Gas is paid by Cyan

Through these activities, staked $APE is always earning yield to its maximum potential. For a deeper dive into the mechanics, please visit our documentation here: https://docs.usecyan.com/docs/staking-apecoin

The original AIP idea thread can be found here: https://forum.apecoin.com/t/proposal-to-stake-5-million-ape-into-the-cyan-apecoin-vault/20921

BENEFIT TO APECOIN ECOSYSTEM

1. ApeCoin DAO generates more $APE for their treasury and other initiatives.
2. Delegated people/groups can increase their voting power through users accessing $APE.
3. BAYC/MAYC users can access $APE for free and get voting power equal to their max stake allotment such as 10,094 for BAYC and 2,042 for MAYC, effectively onboarding more users.
4. The staked $APE CANNOT be liquidated by users, ensuring the full amount of 2.5 million is protected at all times.
5. The 2.5 million $APE grant will be returned at the end of the staking period. This effectively costs the ApeCoin DAO 0 $APE.
6. The ApeCoin DAO generates 50% of the revenue from $APE-related transactions processed through Cyan.

OVERALL COST

Amount requested from the ApeCoin Ecosystem Fund = 2,500,000 ApeCoin + $13,504

The cost comes from a 0.30% deposit fee, which is universal across all Cyan vaults. At current APEUSD prices of $1.80, this would be approximately $13,500. An estimated $4 gas fee is added.

Moreover, an investment of 2.5 million $APE (valued at USD 4.5 million as of March 19, 2024) into the Cyan ApeCoin Vault is necessary, though not an expense. The DAO would maintain control of these funds. Any increase in value and interest earned throughout the investment period would be kept by the DAO.

PROPOSAL

Link to the full proposal: https://forum.apecoin.com/t/aip-393-proposal-to-stake-2-5-million-ape-into-the-cyan-apecoin-vault/20921

The AIP implementation is administered by the Ape Foundation. Implementation may be immaterially or materially altered to optimise for security, usability, to protect APE holders, and otherwise to effect the intent of the AIP. Any material deviations from an AIP, as initially approved, will be disclosed to the APE holder community.