Game Theory

APY.LOL is built on the principles of (3,3) game theory, which is simple to understand. The goal is to stake as much $APY as possible, because the more everyone stakes, the greater the collective rewards.

The more people stake, the more everyone benefits.

By combining staking and bonding, the community strengthens the protocol and increases rewards for all.

🫡 Stake + Stake (3, 3): The best outcome for everyone. When all participants stake, both individual and collective rewards are maximized, making the protocol stronger and more stable.

😐 Stake + Bond (1, 3) or Bond + Bond (1, 1): Bonding offers short-term gains and discounted tokens, but staking provides better long-term rewards. While bonding helps build Protocol Owned Liquidity (POL), staking delivers the highest overall value.

😒 Stake + Sell (-1, 1): Selling weakens the protocol and reduces rewards. Staking remains the best option for sustained growth.

🤬 Sell + Sell (-3, -3): The worst outcome. When everyone sells, the protocol loses value, and rewards drop for all participants. Staking is key to keeping the system strong.