The AQTIS team launched the first segment of the AQTIS documentation and unveiled their Ethereum-pegged LSD (Liquid Staking Derivative): qETH.
Last week marked the launch of AQTIS’ first segment of the eagerly awaited documentation page.
Readers can view the documentation here.
AQTIS brings quant tech to DeFi through yield-bearing LSDs. Sustainable, competitive APY returns on your ETH are now a reality, with composable yields, optional privacy layers and permissionless exits. Over the coming weeks, the AQTIS team will unveil the remaining sections of the documentation, providing an in-depth guide to our ecosystem.
The AQTIS documentation roadmap
AQTIS strongly values openness and transparency, with the documentation release dedicated to giving you an extensive and comprehensive guide on the AQTIS ecosystem. New sections of the documentation will be rolled out almost every week, with a target to complete the entire release by the end of November.
Generate sustainable yield on your ETH with qETH
In this initial release, the AQTIS team spotlights qETH, the Ethereum-pegged Liquid Staking Derivative (LSD). When users acquire qETH through AQTIS, they receive a fixed 10% APY — with no lock-up periods. This APY is composed of 7.5% in ETH and 2.5% in AQTIS tokens.
You might be wondering how AQTIS can transform your ETH into a yield-bearing LSD asset. Let’s dive in…
The AQTIS ecosystem leverages various mechanisms that contribute to yield for the LSDs. Here’s a closer look at how yield is created:
- Ecosystem Liquidity Provider (LP) Fees
AQTIS ecosystem LP fees are fees paid to liquidity providers when users trade AQTIS LSDs and the AQTIS utility token.
- Ecosystem transaction fees (incl. transaction taxes)
Ecosystem transaction fees include AQTIS token transaction taxes and DEX token transaction fees incurred when interacting with a third-party DEX such as Uniswap.
- DEX trading fees
The introduction of an AQTIS decentralised exchange in the future will also have an intrinsic fee structure. A portion of the fees from all tokens traded on the DEX will be directed to LSD token holders.
- Quant Tech
AQTIS LSDs are the primary liquidity source of the ecosystem and, as such, accrue liquidity rewards from the entire ecosystem. Moreover, AQTIS’ in-house developed quant technology powers the ecosystem. The assets utilised for purchasing LSDs are allocated proportionally to the quant tech, meticulously designed for optimum efficiency. AQTIS prioritises minimising drawdowns and exposure time, resulting in highly efficient and risk-averse strategies. This approach adds an extra layer of assurance and confidence to our system. A liquidity insurance fund uses the yield generated by the quant tech to cover the standardised yield and the LP of the LSDs. AQTIS tokens are bought back from the open market using surplus yield and improving the overall liquidity of the AQTIS ecosystem.
To wrap up this section, it’s worth noting that multiple avenues for supporting LSD yields are in the pipeline as AQTIS continues to build a diverse and risk-mitigated ecosystem.
How qETH stacks up against other yield-bearing LSDs
LSDs have exploded onto the scene in recent years, with the DeFi space seeing $19.97b of total value locked up in these assets*.
Of these liquid staking products, Lido is the biggest player, with $14 billion TVL, offering 3.6% APY and taking a 10% cut from rewards. Coinbase, holding $2.221 billion TVL, provides a 3.94% APY but charges a substantial 25% commission on the rewards. Rocket Pool offers a 3.28% 7-day average APY on its $1.553 billion TVL. However, AQTIS stands out with qETH, delivering a remarkable 10% APY and a modest 2.5% average fee when liquidity pool fees and slippage are accounted for.
*All data correct as of 27/09/2023 — Source- DeFi Llama
Stay tuned for what’s next
The AQTIS team would like to thank our community for the ongoing support as the team navigates the complex maze of challenges of building a yield-bearing DeFi ecosystem. Our team will be releasing more documentation that’s both informative and easy to digest. The AQTIS journey has really only just begun, and the team can’t wait to share what’s coming next.
So follow us on X and come say hi in our Discord community to follow future documentation releases and stay up to date on ecosystem developments!
