#### What is APY.Finance? APY.Finance is a platform that aims to simplify the process of [yield](https://blog.coinbase.com/around-the-block-7-understanding-yield-farming-and-the-latest-developments-in-defi-ef9f1ac910fb) farming in the [decentralized finance](https://www.coinbase.com/learn/crypto-basics/what-is-defi) (DeFi) space. It operates as a robo-advisor, managing a portfolio of yield farming strategies from a single pool of [liquidity](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/liquidity-). The platform's [smart contracts](https://www.coinbase.com/learn/crypto-basics/what-is-a-smart-contract) continuously route users' funds to a variety of yield farming strategies, aiming to optimize risk-adjusted yield. APY.Finance also offers significant [gas](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/gas-fee) savings on rebalance fees and deposit and withdrawal fees compared to manual yield farming and other yield farming aggregators. The platform's native token, APY, is an [ERC-20](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/what-is-erc20) governance token that will be used to vote on system-wide parameters, changes to strategies in the portfolio, and the inclusion of entirely new strategies. #### How does APY.Finance work? APY.Finance operates through a series of smart contracts that form a single pool of liquidity. When a user deposits funds into a contract, they are issued APT [tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token) to represent their share of the pool. The platform's strategy portfolio is a library of strategy contracts that interact with financial primitives to earn yield. Each strategy has an asset schema that describes the types of assets and which assets are used for each type. The APY manager automates the movement of liquidity through the system, handling swaps between liquidity pool assets and the strategy portfolio input assets, and rebalancing the portfolio to optimize risk-adjusted yield. The platform also allows [off-chain](https://help.coinbase.com/en/coinbase/trading-and-funding/sending-or-receiving-cryptocurrency/instant-sends) computation of portfolio allocations that can be submitted to the APY manager for verification. #### What are the potential use cases for APY.Finance? APY.Finance aims to provide a simplified and efficient way for users to participate in yield farming. By automatically routing users' funds to a variety of yield farming strategies, the platform seeks to optimize risk-adjusted yield and reduce the complexity and effort typically associated with yield farming. Users can deposit their funds into the platform's liquidity pool and earn yield from the platform's active strategies. The platform's native token, APY, also provides a means for users to participate in the governance of the platform, voting on system-wide parameters and changes to strategies in the portfolio. #### What is the history of APY.Finance? APY.Finance was developed with the goal of simplifying the process of yield farming in the DeFi space. The platform's smart contracts and strategy portfolio were designed to automatically route users' funds to a variety of yield farming strategies, aiming to optimize risk-adjusted yield. The platform's native token, APY, was introduced as a governance token, allowing users to vote on system-wide parameters and changes to strategies in the portfolio. Over time, the platform has continued to evolve and refine its strategies and processes, with the aim of providing a more efficient and user-friendly yield farming experience.