Synthetic Future Wine

The project is exploratory work around the idea of Synthetic Future Yield Tokens, seeing the problems FYTs currently face and a proof of concept to show that creating synthetic FYTs is likely possible and actually not so difficult for the specific case of aTokens. The project shows that the lower the APY the lower the capital efficiency of FYT is. By creating synthetic versions you get a 1 to 1 capital efficiency and also remove the exposure to the actual underlying too! A full implementation of this project could lead unlock better liquidity and new applications for those markets.

The project uses hardhat as the main framework, with an alchemy node for forking the mainnet. We deposit a single aUSDC into the contract at the beginning of the period which will be used as the "oracle". The yield generated is then simply computed by doing balanceOfContract-1. The synthetic FYT contract is then an ERC20 where the balanceOf method is overridden by the amount of usdc deposited scaled by the actual yield rate. The transfer and transferFrom function is also modified using the "beforeTokenTransfer" method. Did not really use APWine technology a part from the concept of FYT but I hope this can help improve the protocol or give further ideas!