Project Insight: ACryptoS

Introduction

ACryptoS is a decentralized finance (DeFi) platform on the Binance Smart Chain (BSC) that offers advanced crypto strategies. It is a yield farming optimizer designed for the longer-term investor who values sustainable tokenomics, safety, and careful risk management.

ACryptoS offers three products on the BSC: a Yield Farming Optimizer, a Stablecoin Decentralized Exchange, and a straightforward Decentralized Exchange.

Let's take a closer look at what the aforementioned services entail. 

What Are Yield Optimizers?

Yield Optimizers are protocols that utilize vaults to automate the best yield farming opportunities. Vaults are used as investment instruments to implement strategies through smart contracts; some of the functions of vaults consist of the following:

• Converting assets to liquidity
• Making assets collateral for others
• Using assets to generate yields and compound interests

ACryptoS Vaults

ACryptoS vaults are designed to grow your assets using automated yield strategies. These “vaults” are automated to save users time and produce a higher yield through more frequent compounding, efficient gas utilization, and other creative automation. When you deposit your assets in a vault, it grows your token exponentially through compound interest. 

ACryptoS vaults are forked from yearn.finance and emulated on the BSC, on top of this, the protocol combines aspects of SushiSwaps’ farming mechanics. Various vaults are available on the ACryptoS vault, the first being the native ACS/ACSI governance token vaults. 

These vaults were made to compound native/governance tokens, which have a generous share of ongoing token emissions. On top of this, most protocol fees are used for token buybacks in ACS/ACSI and distributed to vault users.

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ACryptoS Vaults

CAKE vaults have enjoyed huge popularity on the BSC, the CAKE vaults and PancakeSwap (PCS) liquidity provider (LP) vaults reward users in CAKE. Similar to other PCS vaults one utilizes liquidity pools while the other is a single token vault. The cake vault stakes CAKE on PCS and automatically compounds the CAKE position. The PCS LP vault stakes LP tokens, which farm CAKE and swaps it for more of the respective LP token pair.

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ACryptoS also offers a set of core vaults which boast very high yields due to the ACS allocated as daily rewards. These vaults allow users who provide ACS and ACSI liquidity to automate their yield farming process and earn yields which are exponentially higher.

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ACryptos StableSwap

ACryptoS StableSwap is an automated market maker (AMM) that enables fast and efficient stable coin trades, offering you the best price and low slippage fees on the BSC. ACryptoS has two sub-pools which support various stable coin liquidity. The two pools are ACS4USD Corepool and ACS3BTC. The ACS4USD Corepool consists of 4 staple stable coins: BUSD, USDT, DAI, and USDC. Simultaneously, ACS3BTC Metapool allows seamless trading between BTCB renBTC and pBTC. Metapools allows one token to trade with another underlying base pool to deliver several benefits:

• Prevention dilution of the base pool
• Makes available less liquid assets for listing
• Base pool holders are secured from systemic risk

Through integrating the Metapool, in the scenario such that if VAI loses its peg, the ACS4USD Corepool LP providers that did not provide liquidity to the Metapool would not be affected. Users who provide liquidity to ACryptoS’ StableSwap platform will be rewarded in ACSI tokens. These rewards come on top of the 50% of exchange fees used to buy-back and distribute ACSI to ACSI staking. The developer shares a stake with the liquidity providers, also earning a portion of ACSI liquidity rewards.

Tokenomics

Currently, the native platform token ACS has a max supply of 1,888,888 ACS and distributes 2017 ACS/day amongst all reward allocations. It is also important to note that the ACS team can mint 3% of the total supply for the ACryptoS Treasury.

ACSI follows nearly an identical tokenomics structure to ACS, but it is used to incentivize the StableSwap platform. The token allocation is as follows:

Total ~2017 ACSI/day

ACSI rewards distributed to ACSI Farms: 0.047854209811111116 ACS/block 

+33.33% distributed to ACSI holders via ACSI Vault 

+10% reward to ACryptoS Dev Team 

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Governance

The ACS held in the ACS vault (acsACS) is the governance token. Currently, the governance system allows users to vote and propose community proposals. A minimum of 88 acsACS is needed to create new community proposals, and solely one token is required to vote.

Governance app: https://vote.acryptos.com/

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Security & Risks

Developers warn users to use at their own risk because the project is still in the beta process.

ACrptoS Dev Team Access:

• ACryptoS Dev Team can control all assets in Vaults behind a 24-hour timelock.
• ACryptoS Dev Team can mint ACS token behind a 24-hour timelock.
• ACryptoS Dev Team can mint ACSI token behind a 24-hour timelock.
• ACryptoS Dev Team can control all reward parameters of ACS Farms behind a 6-hour timelock.
• ACryptoS Dev Team can control all reward parameters of ACSI Farms behind a 6-hour timelock.
• ACryptoS Dev Team can control all fee parameters of StableSwap behind a 72-hour timelock. ACryptoS Dev Team can control the destination of StableSwap admin fees.
• ACryptoS Dev Team cannot control assets in Farms.
• ACryptoS Dev Team cannot control assets in StableSwap.

Other Risks:

• Smart contract risks, both ACryptoS contracts and third parties our Vaults interact with.
• Risks in underlying assets and smart contracts.
• “Impermanent loss" risk.
• Risk of StableSwap assets losing their pegs.
  
  

APY and Returns

APYs/returns displayed on the UI exclude transaction fees, which can negatively affect entering and exit. High APYs, which include highly volatile assets, can be said to be a higher risk. While fees cause the APY to be slightly skewed, the costs will be nominal versus the growth due to the compounding effects.

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Conclusion

ACryptos project offers a unique spin on traditional yield optimizers through coupling a stable coin swap. This allows the protocol to utilize its own vaults to create additional rewards for users who provide liquidity to the StableSwap platform. ACryptoS is set to bring out the best in yield farming and optimization with higher stake rewards, lower transaction fees, and minimal slippage. As the BSC continues its rapid growth, ACryptoS will provide users with efficient liquidity mining and an optimal place to swap stable coins.  

Overall it is vital to proceed with caution when purchasing highly speculative tokens. For those who have not already read our articles on safety in the BSC, it is crucial to reference the following items, HERE and HERE.

None of our articles are advice at the end of the day, and all financial decisions should be made on your behalf or from a professional financial advisor.

For more information, or if you wish to stay up to date on the project, check out their media and social media pages: ‍

Website | Telegram | Twitter | Medium‍