What is Akropolis?

What is Akropolis?

What is Akropolis?

...and how do you make money on it?

Dapps & Protocols

·

9 min

What is Akropolis?

...and how do you make money on it?

Dapps & Protocols

·

9 min

What is Akropolis?

...and how do you make money on it?

Dapps & Protocols

·

9 min

What is Akropolis?

...and how do you make money on it?

Dapps & Protocols

·

9 min

What is Akropolis?

Akropolis is one of the earliest DeFi projects in the space. Its origins date back from the stormy 2018, when it started out as a pension fund on the blockchain. Since its humble beginnings, Akropolis protocol has gone a long way to become a fully equipped DeFi platform. Staying true to its mission, Akropolis is fully autonomous, meaning there's no central entity between the user and his financial operations.

Without a third party, previous limitations no longer exist. People from all jurisdictions can manage their crypto funds under the rule of smart contracts, governed by the community. Because smart contracts are neutral by nature, using Akropolis requires no KYC. Meanwhile, the community has a vested interest to ensure the sustainability of the protocol. AKRO token holders vote to adjust the protocol parameters, which helps the AKRO token appreciate in value. 


As good as it sounds, DeFi protocols are constantly under the threat of hacks and exploits. Transparency is a wonderful feature when it comes to global coordination. Anyone can see how the code works before deciding to lock their crypto with Akropolis. Unfortunately, the bad guys are watching as well. In this race against the clock, sometimes the hacker wins. Such is the case with Akropolis protocol, who fell victim to an exploit. In 2020, a hacker exploited a reentrancy bug that enabled him to mint 2 million DAI. Despite being audited twice, developers missed this critical bug.

The bad part is that hacks erode users' confidence in DeFi protocols. Decentralization and transparency are quickly thrown under the bus when people lose money. On the good side, Akropolis added a Reentrancy Guard feature to prevent the same exploit from happening again. Whenever a hack happens, the entire industry gets to learn from their mistake and build a more secure protocol. 

DeFi summer was rife with DeFi hacks and exploits. Akropolis was one of many protocols that had the misfortune of getting hacked. But it's not the end of the world. The Akropolis team and Yearn Finance have merged their development resources to offer better services. In this symbiosis, Akropolis gets to use Yearn's vaults for DCA strategies, and Yearn Finance gets access to new investment strategies and products created by Akropolis. The end result is a non-custodial open-source alternative to savings and high-yield accounts.


An important metric for the health of a DeFi protocol is liquidity. This metric represents how much money is in the protocol. If liquidity is high, this means users can withdraw their funds without experiencing high slippage. On the other hand, low liquidity signifies low trust in the protocol.

As of 2023, Akropolis has over $2M in deposited liquidity. Although Akropolis reacted to the bearish 2022, users have made consistent profits with the protocol. It can be said that the Yearn Finance partnership saved the protocol.

How does Akropolis work?

Akropolis offers a suite of financial services that can be used in a permissionless manner by anyone. Their two main products are based on yield generating returns. 

Akropolis Vortex

Vortex is an on-chain basis trading strategy that aims to generate long-term, sustainable and rewarding returns while remaining market-neutral. 

Basis trading is used in the context of future trading. It is an arbitrage strategy which takes advantage of the difference between the spot and future price of a commodity (the "basis"). 


To explain Vortex, it is important to underline the difference between TradiFi and DeFi. While TradiFi uses order books for matching orders, DeFi relies on liquidity pools. Because liquidity pools are decentralized, it means no third party has custody over the funds. This poses some technical challenges when it comes to implementing futures contracts on the blockchain.

To solve this problem, Akropolis uses perpetual contracts instead. Perpetual Contracts are similar to traditional futures, but, as their name suggests, have no expiration or settlement date. They continue perpetually until the position is closed.

Being market-neutral is a key strength of Vortex. Neutrality means Vortex is not exposed to any crypto vs. fiat price risk, just like when farming with stablecoins. Furthermore, it is proven to be sustainable, profitable across all market conditions and has historically outperformed many other market-neutral strategies and higher-risk yield farms.

As with any DeFi product, there are risks involved. Vortex may produce negative results if the funding rate on perpetual exchanges is consistently against Vortex, or if Vortex’s position(s) gets liquidated.

To mitigate the risk of liquidation, Vortex keeps a portion of the funds idle. This is done to increase the available collateral in the margin account such that the margin account is always overcollateralised, dramatically reducing any liquidation risk.

Akropolis yVaults

After Akropolis merged with Yearn Finance, they launched a new service that uses Yearn's famous Vaults. Unlike Perpetuals, yVaults are much simpler to understand. They are like savings accounts for your crypto assets. yVaults accept your deposit, then route it through strategies which seek out the highest yield available in DeFi. 

The token you deposit in a yVault is the token you’ll receive yield, always automatically compounded into the yVault. A yVault may have many active strategies at the same time. A yVault may change its strategies capital allocation when it deems necessary.

How to make money on Akropolis?

Making money on Akropolis is as easy as depositing funds into a liquidity pool. Think of it as a savings account feature that you have full control over. 

There is one important caveat: as of 2023, Akropolis is in beta mode, which means the service is not fully deployed. Users may experience visual bugs and even smart contract bugs in some extreme cases. Start out small in order to reduce the risk.

Using Akropolis can be though of as a passive income strategy, where the deposited funds are used to provide liquidity across the wider DeFi markets.

All you need is an Ethereum wallet like MetaMask and some ETH to pay for the gas fees.

Akropolis Vaults

Currently, the only available vaults are the yVaults. Here, users can deposit their funds and the Akropolis protocol will route them to the highest paying liquidity pools.

Since yVaults are outsourced from Yearn, there is a guarantee that the vaults are audited and battle tested. 


Here's how to use the Akropolis Vaults:

  1. Open the Akropolis app

  2. Navigate to the "Vaults" tab

  3. Select the pool of your choice

  4. Input the number of tokens you would like to deposit

  5. Click "Deposit" and approve the transaction

Your deposit will start accumulating APY from the moment your transaction is confirmed. In addition to the APY, users are also rewarded in AKRO tokens. These tokens are vested for a 12 month period, which means the will be claimable after the vesting period expires.

The 12 month vesting period prevents liquidity sniping, aka users who dump their AKRO tokens immediately and withdraw their liquidity. Users who keep their liquidity on Akropolis for a longer time will earn more AKRO tokens.

Akropolis Staking

After your AKRO tokens become claimable you can either choose to sell them, or stake the AKRO to earn more AKRO tokens and a portion of the protocol revenue. Unlike vesting, staked AKRO can be withdrawn at any time. 


Here's how you stake AKRO on Akropolis:

  1. Open the Akropolis app

  2. Navigate to the "Stake" tab

  3. Input the number of AKRO tokens you would like to stale

  4. Click "Stake" and approve the transaction

Price Prediction for Akropolis — Can it hit $1?

Buying and hodling AKRO — the native token of the Akropolis — is one way of potentially making money on Akropolis.

The utility of AKRO is to secure the Akropolis protocol. This means the price of the AKRO token is tied to the amount of value secured by the protocol. Validator nodes have an incentive to buy AKRO tokens and spin up more nodes, which results in more AKRO rewards.

By looking at its current price, it’s natural to think about the chance of AKRO hitting $1 per token. This can happen sooner, or way in the future, and is determined by a couple of ever changing factors.

Let’s examine the potential growth of the AKRO token by analyzing its tokenomics. Akropolis’ current market cap sits comfortably at ${MARKET_CAP}. With {CIRCULATING_SUPPLY} AKRO tokens being in circulation today, that means a price of {PRICE} per AKRO.

How did we come to that calculation? It’s quite easy, the price of an AKRO token is equal to its current market cap divided by the number of tokens in circulation. Dividing ${MARKET_CAP} by {CIRCULATING_SUPPLY} gives us a result of {PRICE} for each AKRO coin. 

By changing the order in the simple formula above we can use it to calculate other things as well. This helps us a lot because we can deduce the market cap of AKRO at different token prices. Then, we can use the result to compare it to the current state of the network and see what would be required for AKRO to hit that price.

At a price of $1 per token, that means the current market cap of AKRO would equal ${{CIRCULATING_SUPPLY} * 1}. Remember that we arrived at this number by multiplying the amount of circulating tokens by $1.

Now let’s shift our attention to the fully diluted market cap.

Some blockchains may have their tokenomics built in a way that only a small percentage of tokens are circulating at the beginning. This can be misleading because we don’t have the full picture and only take into account the current number of coins released in the market.

The fully diluted market cap represents the total value of a coin if all tokens were in circulation. AKRO’s whole supply of tokens is {MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} AKRO which means that no more coins above that number will ever be created.

These tokens are not created at the discretion of a specific entity. They are created automatically by the network to reward different actors that keep it secure.

How does this impact the price of AKRO? Taking into account the current price of an AKRO token, that would result in a fully diluted market cap of ${MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY * PRICE}. AKRO coins that have been burned are not taken into consideration because they have been permanently removed from circulation.

Whether it seems gigantic or not, the number we came to above only takes into account the current price of an AKRO token. Doing the same calculation but with a price of $1 gives us a result of ${{MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} * 1} for the AKRO protocol fully diluted market cap.

These are all crucial details to know when calculating if AKRO can reach the price of $1 per token. If the diluted market capitalization is way too high, the token has little room left to grow. Blockchains in general have no cap on the value they can reach, whether that number seems possible it’s totally up to you.

The future of AKRO depends solely on its growth as a network used by tens and hundreds of millions of users. Technically, it is possible for the price of AKRO to reach $1 by 2030.

If you’re looking to add some AKRO to your portfolio, the most trusted places to get some are Binance and Coinbase.


Ultimate Web3 Automation

A lil' more goodness

What is Arrakis Finance?

Dapps & Protocols

·

19 min

What is Saber Finance?

Dapps & Protocols

·

19 min

What is Balancer?

Dapps & Protocols

·

19 min

What is Status?

Dapps & Protocols

·

19 min

What is MuesliSwap?

Dapps & Protocols

·

19 min

What is Across Protocol?

Dapps & Protocols

·

19 min

What is SushiSwap?

Dapps & Protocols

·

19 min

What is Velodrome Finance?

Dapps & Protocols

·

19 min

What is Pangolin?

Dapps & Protocols

·

19 min

What is Metal?

Dapps & Protocols

·

19 min

What is Golem?

Dapps & Protocols

·

19 min

What is Orca?

Dapps & Protocols

·

19 min

What is Compound?

Dapps & Protocols

·

19 min

What is ROOK?

Dapps & Protocols

·

19 min

What is Mango?

Dapps & Protocols

·

19 min

What is Harvest Finance?

Dapps & Protocols

·

19 min

What is Enzyme?

Dapps & Protocols

·

19 min

What is Origin Protocol?

Dapps & Protocols

·

19 min

What is Frax Finance?

Dapps & Protocols

·

19 min

What is BENQI?

Dapps & Protocols

·

19 min

What is OpenSea?

Dapps & Protocols

·

19 min

What is iExec?

Dapps & Protocols

·

19 min

What is Yearn Finance?

Dapps & Protocols

·

19 min

What is Toros Finance?

Dapps & Protocols

·

19 min

What is LooksRare?

Dapps & Protocols

·

19 min

What is Elk Finance?

Dapps & Protocols

·

19 min

What is Yield Yak?

Dapps & Protocols

·

19 min

What is Quickswap?

Dapps & Protocols

·

19 min

What is Pool Together?

Dapps & Protocols

·

19 min

What is Multichain (Anyswap)?

Dapps & Protocols

·

19 min

What is Thales?

Dapps & Protocols

·

19 min

What is Crabada?

Dapps & Protocols

·

19 min

What is Timeswap?

Dapps & Protocols

·

19 min

What is Abracadabra Money?

Dapps & Protocols

·

19 min

What is Sudoswap?

Dapps & Protocols

·

19 min

What is Injective Protocol?

Dapps & Protocols

·

19 min

What is Mixin?

Dapps & Protocols

·

19 min

What is 0VIX Protocol?

Dapps & Protocols

·

19 min

What is Swaap Finance?

Dapps & Protocols

·

19 min

What is BurgerCities?

Dapps & Protocols

·

19 min

What is Lyra?

Dapps & Protocols

·

19 min

What is Solend?

Dapps & Protocols

·

19 min

What is Mean Finance?

Dapps & Protocols

·

19 min

What is The Graph?

Dapps & Protocols

·

19 min

What is AAVE?

Dapps & Protocols

·

19 min

What is Gods Unchained?

Dapps & Protocols

·

19 min

What is Synthetix?

Dapps & Protocols

·

19 min

What is Gelato?

Dapps & Protocols

·

19 min

What is JustStable?

Dapps & Protocols

·

19 min

What is Aavegotchi?

Dapps & Protocols

·

19 min

What is RociFi?

Dapps & Protocols

·

19 min

What is Perpetual Protocol?

Dapps & Protocols

·

19 min

What is Linear Finance?

Dapps & Protocols

·

19 min

What is 0x Protocol?

Dapps & Protocols

·

19 min

What is Monolith?

Dapps & Protocols

·

19 min

What is Keep Network?

Dapps & Protocols

·

19 min

What is Dune Analytics?

Dapps & Protocols

·

19 min

What is Holochain?

Dapps & Protocols

·

19 min

What is Gnosis Safe?

Dapps & Protocols

·

19 min

What is StakeDAO?

Dapps & Protocols

·

19 min

What is 1Inch?

Dapps & Protocols

·

19 min

What is Angle Finance?

Dapps & Protocols

·

19 min

What is Magic Eden?

Dapps & Protocols

·

19 min

What is Pickle Finance?

Dapps & Protocols

·

19 min

What is dYdX?

Dapps & Protocols

·

19 min

What is Ellipsis Finance?

Dapps & Protocols

·

19 min

What is Decentraland?

Dapps & Protocols

·

19 min

What is Convex Finance?

Dapps & Protocols

·

19 min

What is Dfyn?

Dapps & Protocols

·

19 min

What is Rocket Pool?

Dapps & Protocols

·

19 min

What is Shiba Inu?

Dapps & Protocols

·

19 min

What is MakerDAO?

Dapps & Protocols

·

19 min

What is Penguin Finance?

Dapps & Protocols

·

19 min

What is Francium?

Dapps & Protocols

·

19 min

What is Storj?

Dapps & Protocols

·

19 min

What is Saffron Finance?

Dapps & Protocols

·

19 min

What is Adamant Finance?

Dapps & Protocols

·

19 min

What is Raydium?

Dapps & Protocols

·

19 min

What is SundaeSwap?

Dapps & Protocols

·

19 min

What is Synapse?

Dapps & Protocols

·

19 min

What is Reserve?

Dapps & Protocols

·

19 min

What is Alchemix?

Dapps & Protocols

·

19 min

What is Ankr?

Dapps & Protocols

·

19 min

What is Apricot Finance?

Dapps & Protocols

·

19 min

What is Trader Joe?

Dapps & Protocols

·

19 min

What is Router Protocol?

Dapps & Protocols

·

19 min

What is Alpaca Finance?

Dapps & Protocols

·

19 min

What is Index Coop?

Dapps & Protocols

·

19 min

What is API3?

Dapps & Protocols

·

19 min

What is Band Protocol?

Dapps & Protocols

·

19 min

What is Hop Protocol?

Dapps & Protocols

·

19 min

What is Port Finance?

Dapps & Protocols

·

19 min

What is Augur?

Dapps & Protocols

·

19 min

What is Aragon?

Dapps & Protocols

·

19 min

What is BadgerDAO?

Dapps & Protocols

·

19 min

What is Uniswap?

Dapps & Protocols

·

19 min

What is Cometh?

Dapps & Protocols

·

19 min

What is Request Network?

Dapps & Protocols

·

19 min

What is Chainlink?

Dapps & Protocols

·

19 min

What is TrustSwap?

Dapps & Protocols

·

19 min

What is Set Protocol?

Dapps & Protocols

·

19 min

What is MeanFi?

Dapps & Protocols

·

19 min

What is Saddle Finance?

Dapps & Protocols

·

19 min

What is Axie Infinity?

Dapps & Protocols

·

19 min

What is Serum?

Dapps & Protocols

·

19 min

What is Bonfida?

Dapps & Protocols

·

19 min

What is Atlendis Protocol?

Dapps & Protocols

·

19 min

Stay in the loop

No spam, just certified good stuff

Stay in the loop

No spam, just certified good stuff

Stay in the loop

No spam, just certified good stuff

Stay in the loop

No spam, just certified good stuff

Stay in the loop

No spam, just certified good stuff