What is Agility? After the success of Ehthereum Shanghai Upgrade, the DeFi market has become more exciting with a new niche called LSDfi including projects built on Liquid Staking protocols. In this article, we will learn about Agility, one of the prominent LSDfi projects recently.
What is Agility?
Agility is a liquidity distribution platform for LSD assets as well as a platform that allows trading of aUSD – which we will look at in more detail below.
Agility was born with the goal of improving liquidity for LSD holders (stETH, rETH, frxETH,…), expanding the trading market for LSD assets while providing deep liquidity for Liquid projects Staking linked to Agility.
What is the Mechanism of Action of Agility
Holders of LSD or ETH can deposit assets into Agility to receive aLSD or aETH in return, after which they can further choose to:
- Only hold aLSD to receive profits from the corresponding LSD (aETH will not have yield)
- Use aLSD to participate in “LSD Liquidity Distribution”, provide LSD liquidity to selected Vaults and receive higher yields.
- Use aLSD & aETH as collateral to mint aUSD for trading or hedging at affiliated perps & yield trading exchanges, etc.
To better understand how Agility creates a much more attractive yield than holding regular LSD (4%-7%), we will need to analyze the operating mechanism of the “LSD Liquidity Distribution” system. by Algility
This system operates with the participation of 3 components:
- LSD Protocols: LSD protocols such as Lido, Frax or Rocket Pool need and are willing to spend money (incentives) to attract liquidity for their LSD asset pair LSD/ETH.
- aLSD/aETH Holders: In other words, these are LSD/ETH holders who have idle LSD and ETH and are looking for profits on these assets.
- Agility: The intermediary stands between LSD Protocols and Holders through LSD strategy vaults.
The special thing about Agility is that this platform uses the vetoken model, here called esAGI, to operate the system. “LSD Liquidity Distribution”. Specifically, in addition to yield generated directly from vaults, aLSD/aETH holders participating in liquidity distribution will receive a portion of esAGI token emission from Agility corresponding to the vault they choose. This emission rate will be decided by the DAO as esAGI holders vote and LSD protocols can bribe esAGI votes for their own vaults similar to the operating mechanism of Curve.
In addition, aLSD/aETH holders can choose to mint aUSD with a collateral level of 130% (ie for 1 aUSD, a minimum of $1.3 aLSD/aETH will be needed as collateral) and a liquidation level of 110%. Users can bring this aUSD to continue trading or hedging on perps and yield trading exchanges associated with Agility.
Development Roadmap
Phase one
- Initiate Liquidity Farming – Accumulate LSD and ETH liquidity.
- Launch of aUSD Module and aUSD-USDC liquidity incentive.
Phase Two
- Launch of LSD Strategy Vaults.
- Launch of aUSD’s Perp and Yield Exchange Ecosystem.
- Launching the LSD Liquidity Distribution Ecosystem.
Phase Three
- Improve the aUSD Trading ecosystem to attract external developers to build.
- Improved LSD Liquidity Distribution ecosystem and launched bribe function.
- Create more applications for aUSD.
Core Team
Update…
Investor
Update…
Tokenomics
Overview information about Agility tokens
- Token Name: Agility
- Ticker: AGI
- Blockchain: Ethereum
- Token Standard: ERC-20
- Contract: 0x5f18ea482ad5cc6bc65803817c99f477043dce85
- Token Type: Utility, Governance
- Total Supply: 500,000,000
- Circulating Supply: Updating…
Token Allocation
Agility distributes 88% of AGI tokens to incentivize Mining into 10% for Treasury, the remaining 2% is divided equally between Marketing and Initial Liquidity.
Note: According to some KOLs and Coingecko warnings, Agility smart contract owners can mint additional tokens. Team Agility has explained before each mint that voting will be required, however, this is a risk you need to consider when deciding to invest.
Use Cases
AGI can be converted into esAGI which cannot be transferred or traded but only to participate in governance voting, enjoy revenue from the platform and bribe from LSD Protocols.
Redeem from esAGI to AGI, token holders can choose 2 time points and corresponding ratios as follows: 3 days – 1:0.5 or 14 days – 1:1.
Exchanges
Currently, you can trade AGI tokens via Uniswap, Gate.io, MEXC, and Poloniex.
Agility’s Information Channel
- Website: https://agilitylsd.com/
- Twitter: https://twitter.com/agility_lsd
- Discord: https://discord.com/agilitylsd
Summary
Hope this article has partly helped you understand What is Agility? It can be said that LSDfi is currently facing a great opportunity for growth, however, the projects in this segment all have very new models so they need time to prove. Agility is no exception. When the price of AGI decreases, the yield directly equals the decrease in esAGI, will Agility still retain TVL or what is Agility’s peg retention mechanism for aUSD? In the near future we need to monitor more.