Decentralized derivatives protocol ApeX is a permissionless, non-custodial platform that allows for the creation of perpetual swap (funding) markets on any token pair. ApeX Protocol is making a grand entrance into the DeFi sector at a time when there is high demand for decentralized product offerings and unwavering industry’s quest for censorship-free financial products.
It’s no longer news that decentralized financial products are fast gaining traction and becoming a popular offering, with widespread mainstream adoption.
ApeX Protocol allows for the creation of perpetual swap markets on any token pair in a decentralized, non-custodial manner. This ultimately aligns with the fundamental rethinking of how money works, with a focus on open-source technology and permissionless networks. Perpetual swaps are derivative contracts that allow two participants to engage in a margin trade with no settlement until one of the parties ends the contract.
ApeX Protocol’s Journey to date
ApeX has had a busy start and has successfully launched a beta version of the Protocol on the Arbitrum mainnet, finished its seed financing round, and sold out a total of 4,580 unique NFTs to its users. $APEX is the native token of the ApeX Protocol, which provides value and utility to its users, such as governance, protocol incentives, and staking. $APEX has a pre-mined fixed total supply of 1 billion tokens.
Many people in the crypto community and beyond are debating whether it is better to hold or trade in the long run. Another growing in combination with this one is if staking is a safer investment than buying and holding NFTs. ApeX contends that in today’s world of DeFi, there is no such thing as a one-size-fits-all investment strategy; ROI is dependent on the platform.
ApeX’s value proposition is built on three areas.
ApeX Protocol is strongly based on the idea of creating a permissionless, globally accessible perpetual contract protocol. The ability to trade on the ApeX Protocol without requiring an account or authentication allows anybody with internet access to engage in trading and the exchange of financial products.
ApeX is built on these 3 core areas:
Fully Permissionless — This means there are no KYC or AML requirements. Most DeFi platforms need KYC/AML verification before allowing users to utilize their services. ApeX has taken a stand against KYC/AML requirements, believing that they cause unnecessary friction for end-users and go against the principles of a fully permissionless system.
Liquidity in Perpetuity — ApeX believes it is critical to provide an avenue for users to profit from liquidity provision without any time limits or limitations. The Protocol was created as a basis for future applications in diverse financial sectors.
Full-spectrum Asset Support — Crypto-assets are more than just tokens when it comes to transferring value across borders and economies via blockchain technology. ApeX’s ultimate objective is to become a one-stop-shop for all swap services.
ApeX Protocol is backed by A-list VCs and influential investors.
ApeX isn’t embarking on this journey as a lone ranger, they are backed by influential investors and strategic partners who believe in the value proportion of the Protocol. These global partners and investors include Dragonfly Capital Partners, Jump Trading, and Tiger Global Management, who will support the development of the solutions that will transform the state of DeFi.
How ApeX stands tall among other derivative protocols
According to ApeX, the market maker design, pricing formula, and risk management system are the most significant components of a perpetual swap protocol. To provide fair pricing, effective price discovery, and minimal risk, all these three components must operate together flawlessly. ApeX Protocol is distinguished from other protocols on the market by two essential characteristics outlined below:
- Elastic Automated Market Maker (eAMM)
Elastic Automated Market Maker (eAMM) is a self-balancing technology that allows on-chain derivatives to be created. It features a liquidity pool that is used as collateral to support traders’ positions. Unlike regular centralized exchanges that only offer spot and futures trading, this lets traders take leveraged long or short bets without the requirement for counterparties. Because eAMMs expand and contract in response to the amount of funding required for derivative markets at any period of time, more liquid markets will have bigger eAMMs than less liquid markets.
- Protocol Controlled Value
ApeX uses a Protocol Controlled Value (PCV) system, which means the Protocol keeps track of all open positions for each user as well as their collateral status. PCV also ensures that all users have sufficient collateral to support their holdings, and it encourages traders to under-collateralize their positions in order to maximize profits. This concept works effectively for ApeX because it eliminates the need for a third-party liquidator.
A glimpse into what ApeX has in store for the future
ApeX Protocol has seen remarkable development and innovation in the last three months. Every week, more people join the Protocol as token holders, community members, and exchange traders. The project’s goal is to build a bonding program and launch an upgraded trading experience on a multi-chain platform for the V1 launch of the ApeX Protocol in the first half of 2022.
The decentralized Protocol uses an elastic Automated Market Maker (eAMM) model, with the Constant Product Formula at its core. The eAMM’s design concept is unique, and it should eliminate some of the friction associated with establishing decentralized liquidity pools. ApeX provides traders with complete custody of their funds and protection from market crashes by building a protocol that supports genuine decentralized trading with collateralized assets, making it an appealing solution for present and prospective users.
ApeX has lined up a series of promotions and campaigns to reward loyal supporters in the coming months. These include liquidity mining programs, referral programs, staking programs, etc. NFT holders will be eligible to enjoy an 8% lifetime transaction fee discount and are entitled to participate in an NFT game competition to win up to more than 120K $APEX.
Due to the incentive structure which rewards $APEX holders for engaging in governance; disintermediation (no custodians, no trusted third parties); and a self-adjusting interest rate mechanism, ApeX is positioned to become a stable protocol and ecosystem. Numerous use cases including tokenized fiat onramps, price arbitrage, synthetic short selling, and hedged wagers, are some of the key properties that demonstrate the Protocol’s potential. Overall, ApeX is a well-designed, groundbreaking protocol with the potential to become the industry standard for all crypto derivatives platforms.
ApeX Official Links