Aperocket 101, or is it 201?

Reference Guide to How It All Works and then some

Without wasting precious time to talk about the journey of Aperocket to the current v2 iteration, here’s a, hopefully, easy to understand explanation of the vaults and pool.

I have been here since the beginning and am still staked at the v1 $SPACE pool at the time of this writing. Some of my planned strategies will be appended at the end so others may understand or reference them.

Aperocket provides vault services to users holding single and LP tokens from popular platforms like Apeswap, Pancakeswap and Biswap. Vaults will autocompound numerous times daily to maximise deposited funds.

The 3 types of vaults available are broken down below, each with a short explanation of how they function.

• Single $SPACE pool with duration lock feature.
• Single token vault with autocompounding.
• LP token vault with autocompounding.

Single $SPACE pool

Based on interactions I’ve seen, this is probably the pool with the highest amount of complexity on the platform.

However, broken down, it is basically a simple concept. Let’s look at the Locking of $SPACE and the Staking of $xSPACE seperately.

No longer are users able to stake $SPACE in a single pool, natively, on Aperocket. Instead, users are now presented with an option to “lock” $SPACE from a period of 1–100 weeks to receive $xSPACE tokens.

Staking for the full 100 weeks duration will qualify for 100% ratio of return in $xSPACE.

An example would be if I were to lock 650 $SPACE for 40 weeks, I would receive 40% x 650 = 260 $xSPACE tokens.

At the end of the 40 weeks, I would be able to redeem the $xSPACE I received back to the original 650 $SPACE. Do take note that, should there be a need to redeem before the time is up, I will only receive 50% of the 650 $SPACE as a penalty.

The $xSPACE received would then be used to stake in the single SPACE pool in order to earn $WBNB & $SPACE rewards.

On top of that, just by holding or staking $xSPACE qualifies for the following :

• Earn additional $SPACE from others who redeem from their lock before it expires.
• Platform governance.
• Platform-wide boost to vaults for $SPACE earnings (not operational yet).

Single Autocompounding Vaults

There’s one pool for each of the native tokens of Apeswap, Pancakeswap and Biswap.

Everyone should be familiar with vaults like that. Just deposit the native token and watch the numbers increase over time. However, there is some slight differences from v1 vaults.

The “Deposit” box now shows the actual deposited amount and will not accrue. Rewards accrue on the 2 boxes below over time.

Any subsequent deposit to increase the stake will force a claim of $SPACE rewards, which will be converted to $xSPACE and held for a period of 90 days. (Greater explanation below).

There is no partial withdrawal function. If a user wants to withdraw a portion of the principal, a full claim & withdraw should be done before re-depositing the new amount.

LP Autocompounding Vaults

For LP token vaults, do note that there are 2 types for most pairs. There will be a LP Optimizer vault which increases the amount of LP tokens over time, in addition to $SPACE rewards.

And there’s the <token name> Maximizer (in my example, I am using $BANANA) which rewards in $BANANA & $SPACE.

All rewards are autocompounded and there is no need to claim and re-deposit into the principal.

The rules for these vaults are the same as the single token vault. Any deposit to increase the principal will trigger a claim of $SPACE which is converted to $xSPACE and vests at the end of a 90 day period.

Block Lock Feature

You must be wondering what is the deal with $SPACE rewards generated from vault activity be locked for 90 days?

This is a security feature to prevent any attempt at flash loans that have been employed in the past against Yield Aggregators. By locking tokens that can be instantly liquidated, exploiters are now unable to perform flash loans against Aperocket as they would not have any liquidity to return the borrowed amount during execution of the flash loan.

On top of that, Aperocket has gone one step further to only allow whitelisted smart contracts to interact with theirs, thus mitigating flash loan risks even further.

Thus, as $SPACE rewards get accrued, they are automatically converted to $xSPACE which can be staked in the single SPACE pool to earn rewards.

The amount of $xSPACE awarded is equal to the ratio of a 90 day lock, which is approximately 12.85%.

Here’s another example. Say I have 2 $SPACE unredeemed in a vault and I chose to re-deposit some more tokens, the 2 $SPACE will be auto claimed and locked for 90 days. I would receive approximately 2 x 12.85 = 0.257 $xSPACE for use in the single SPACE pool.

At the end of the 90 days, I will be able to redeem the original 2 $SPACE with the $xSPACE that was awarded.

Users can monitor the timers which are seperated by days in the single SPACE pool. On day 1, if $SPACE has been claimed, they will all be added to the sameday line item, while day 2 claims will be on a seperate line item.

I hope the above description helps you to have a better understanding of how Aperocket v2 functions at the moment. At the end of the day, I appreciate the developers for making decisions around security and longevity of the platform.

However, it also means that I will re-strategize my investments around these new changes. In v1, it was pretty straightforward but with most of my current holdings in $SPACE, I may change the way I employ them to generate rewards.

Do note my strategies may or may not be for everyone but I share them as a form of thought process from a fellow investor.

So here’s my current situation. Like many others, I have participated in Apeswap’s IAO launch of Aperocket and was initially farming with $SPACE-BNB. Due to the incident in July, I redeemed my LPs at the lowered prices and ended up with (in my terms) a huge quantity of $SPACE which was then put into the single SPACE pool on v1, where they are still residing currently.

The dilemma which I am still considering options for right now, is what I should do after Oct 12, when the v1 pool rewards dry up.

After understanding the mechanics provided by Aperocket v2, I came to these few considerations :

• I will only lock $SPACE for minimum period of 80 weeks, which equates to 20% dilution of value for my $SPACE holdings.
• If not, I will recreate $SPACE-BNB again and farm it in the LP pools, while avoiding the lock period.
• The big unknown right now would be the “boost” that will come later for locking $SPACE, it could be a game changer.
• Accumulate “regular” $xSPACE that are locked for 90 days and immediately send them for staking in single SPACE pool. Only redeem them if I need to cash out. Treat newly awarded $xSPACE as money printers.

With all these in mind, I may likely execute the plan below until a time where the boost benefit is released.

My Upcoming Strat

Zap all $SPACE to $SPACE-BNB LP and add them to the LP farm. Accumulate $xSPACE from all other vaults until boost has been released and then reassess my options.

Considerations :

• Flexible at the start to respond to any price action as I can claim the LPs and trade $SPACE at anytime.
• If boost releases within 78 weeks after v1 ends, I can redeem the LPs, zap $BNB to $SPACE and lock for minimum 80 weeks and am still able to time my unlock at about the same time as the first guys who staked 100 weeks.
• Accumulation of freshly minted $xSPACE will be key for me after locking. Profit taking, if needed, can start after 90 days. However, the “end game” is to focus on accumulating as much $xSPACE as possible to gain as much $WBNB.
• Near the end of the locking period, I will also have the flexibility to increase my lock period to the full 100 weeks, depending on the markets at that time for a final burst of accumulation goodness.

As you can see, I have adopted a very long term investment plan for Aperocket. The developers, especially Abu has been tirelessly catering to the users of the platform.

They could have easily packed it up and moved onto a new identity and into a new project but they stuck around to rebuilt the platform from the ground up. That is a huge plus in my book and thus my long views on the platform.

I hope this helps anyone who has been confused with the new features in the implementation of Aperocket v2. I was too initially and watched questions and answers on Telegram to get a better idea.

Before I end, I would also like to give a shoutout to the folks who survived the July incident and whom I have been hodling hard with. Those quiet weeks, staking and waiting for v2 (with the occasional fun times in Telegram) are memories that I will never forget in my DeFi journey!

Derek (JP)