Akropolis Explained: Features, Pros & Cons, and More

By 

Filip Dimkovski

 on May 20, 2022. 
Reviewed by 

Marcel Deer

Akropolis cryptocurrency logo in pink and purples on a futuristic background

Akropolis is a relatively new DeFi protocol that allows developers to launch dApps (decentralized apps) on the blockchain and use financial services without needing an intermediary. The project has been around for a couple of years, being launched in 2018 on the Ethereum blockchain, serving as a protocol to eliminate inefficiencies and increase transparency. If you’d like to learn more about this DeFi project and understand how it works, continue reading below.

How Does Akropolis Work?

When it was initially launched, Akropolis was built primarily as a project to help people with any pension-related problems. Since then, the project has massively evolved, helping people create their own pension funds and offering an income-earning solution for potential retirees regardless of their location.

So, how does the Akropolis project work? Unlike most retiree projects, Akropolis is fully autonomous, not having a central authority manage and provide pension-related services. Since it’s a part of the DeFi (decentralized finance) space, everyone can partake as long as they have AKRO tokens to stake. The way it works is simple - you stake AKRO tokens in a liquidity pool, where others can use them to transfer, borrow, and lend money on the blockchain. As a result, you’ll earn interest on your money and generate passive income.

In addition to the AKRO token, you can make use of other products on the Akropolis platform, including the Vortex (v1) project and crypto vaults:

Vortex

Vortex is an on-chain DeFi project primarily used to generate low-risk & medium-profit rewards while trying to retain as much neutrality as possible. Although the returns are solid (averaging 5-10% on staked crypto), it still has risks like relatively high centralization and smart contract risks.

Crypto vaults

Crypto vaults are exactly what you imagine them to be - a vault where you can safely store your crypto and earn interest on your staked assets. There are different levels & tiers you can stake at with crypto vaults, offering you anywhere between 2 - 100% annual return. The most rewarding one is yvBOOST Vault, offering an APY of 105%. Keep in mind that the vaults with a high return are significantly riskier, so approach them with caution.

In addition to the two main projects we’ve mentioned above, you can also stake AKRO tokens and earn a modest 14% return in AKRO, though this strategy is risky too.

Akropolis Features

We briefly discussed above that Akropolis’s primary feature is allowing individuals to earn crypto in different ways. In addition to these features, you also get governing rights in the Akropolis project by holding AKRO tokens.

Governance with the AKRO Token

Akropolis’s crypto token (AKRO) is a so-called governance token, granting all holders the right to participate in decisions that affect the project. Every user that holds at least 1 AKRO has a right to vote on the project, with one vote being granted for every AKRO token staked. Naturally, the ones that hold more AKRO have bigger voting rights, though everyone can cast a vote on product features & integrations, as well as new strategy proposals.

Advantages of Akropolis

As a DeFi project, Akropolis has many attractive features, which is why it’s been gaining a lot of popularity recently. The pros of the Akropolis project are the following:

  • Everyone can join the project without even having a bank account
  • Users can earn significantly more money thanks to DeFi’s high-interest rates (when compared to traditional finance)
  • AKRO holders are in full control of the payments they’re receiving when using Akropolis
  • The project is transparent and designed to have immutable financial record-keeping, making it almost fraud-proof

Disadvantages of Akropolis

Every project in the crypto space should have a healthy amount of skepticism. The idea of DeFi is still relatively new, and being skeptical about all projects is not only understandable but recommended too. These are the disadvantages of the Akropolis project:

  • Questionable safety - the Akropolis project was hacked for $2m in November 2020, so they are not 100% immune to all types of attacks
  • DeFi is a highly competitive space. There are always new projects offering better products, making the sustainability of Akropolis questionable.
  • Crypto is still highly volatile. Although Akropolis promises solid returns & a safe way to build a retirement account, all the returns it gives are in crypto, not fiat currency. When the price of crypto changes, so will the value of your account

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