In this article, you will learn what is the Apex protocol. Ambitious projects like ApeX Protocol evolve upon existing liquidity models by adding the aspect of elasticity. Elastic Automated Market Maker (eAMM) approach offers a whole new trading experience as capital efficiency is significantly improved and each transaction feels like a spot trade.
What is the Apex Protocol?
ApeX Protocol is a decentralized and noncustodial derivatives protocol that facilitates the creation of perpetual swap markets for any token pair. Users can trade crypto derivatives directly on the Ethereum blockchain without any intermediaries while enjoying unlimited flexibility. This is because users can create markets on any underlying asset while maintaining control of their private keys.
ApeX protocol is a project incubated by Davion Labs. Since launching on the Arbitrum mainnet on February 28. 2022. ApeX Protocol has garnered a huge amount of attention. With the overarching goal of making financial instruments like perpetual contracts the more transparent to ApeX Protocol addresses the noticeable gap in the crypto derivatives market. It's no wonder big names like Dragonfly Capital Partners and Tiger Global have entered during the seed round funding and are backing this DeFi project.
With ApeX Protocol, users can do the following:
- Trade any Web 3.0. DeFi, Meme or GameFi tokens on the derivatives market with 10X leverage.
-Create liquidity pools and add liquidity to any pairs.
- Purchase $APEX token with decent price via Bond program and stake to earn a high APR.
- Stake to earn $APEX government token and transaction fee rewards.
- Trade NFTs & join ApeX NFT games.
What Are $APEX Tokens?
$APEX is the native token of ApeX Protocol and gives users the ability to determine the future of ApeX protocol while enjoying various benefits. The utility of APEX tokens include:
Governance Influence: Long-term $APEX token holders are entitled to suggest and vote on future governance proposals that decide the future direction of ApeX Protocol.
Protocol Incentivization: $APEX tokens are given out as rewards as users participate, add liquidity to pools, trade actively and refer like-minded DeFi enthusiasts under the ApeX referral program.
Staking: Users can stake $APEX tokens to earn rewards in $APEX tokens.
All in all, there's a maximum supply of one billion APEX tokens available. Of this amount, 23% are allocated to the core team and early investors with a one year cliff starting from the token generation event followed by a two year linear vesting period. The remaining 77% will be allocated to the DAO and will largely be used for participation rewards, ecosystem fostering and liquidity bootstrapping. From this allocation, we can imply that the team is focused on exponential growth for ApeX Protocol as the APEX tokens help in getting more users onboard the platform.
Bottom Line
ApeX Protocol's focus on being fully permissionless, providing liquidity in perpetuity and offering full-spectrum asset support ultimately makes it a gleaming prospect in the DeFi space. This article is about what is the Apex protocol.
