In the wake of revolutionary decentralized exchanges like PancakeSwap, there have been quite a number of DEXes competing for market share. There are the likes of QuickSwap, JustSwap, KLAYswap, Honeyswap, and several of DeFi platforms seeking to become a worthy alternative to PancakeSwap. Among all these projects, ApeSwap decentralized exchange has caught our attention.
The ApeSwap Decentralized Exchange
ApeSwap is an automated money maker (AMM) and yield farming protocol that is built on the Binance Smart Chain (BSC). One of the most interesting things about ApeSwap is that it has been forked from PancakeSwap. Although PancakeSwap is currently leading the market, ApeSwap sits on number three as the most used DEX for BSC.
One of the many reasons why several projects are beginning to patronize the protocol is as a result of its quick and fast transaction process. Basically, the DEX allows users to swap tokens at a low cost on the Binance Smart Chain. Its highest trading pairs by volume have been USDT, BNB, and BANANA, in that order. From the available data, it is good to note that ApeSwap has a strong grip on the market. ApeSwap is on the 4th place according to DappRadar.
The Features of ApeSwap Dex
Here are some of the major features of DEX that point to the belief that the platform is positioning itself as an alternative to PancakeSwap:
Users can stake liquidity pool tokens on the decentralized exchange in order to be rewarded with $BANANA. The platform initially launched 5 yield farms, but has grown to add dozens of more yield farms.
A good number of tokens from the partners of ApeSwap have been made available in the pool. Users can easily earn these tokens by staking their $BANANA. The liquidity mining started in February, 2021 with what they called “BANANA Frenzy.”
- Initial Ape Offering (IAOs)
This is Apeswap’s version of token offering, and it allows users to invest in new projects launching on the platform. Users can do this by purchasing tokens with either BNB or GHANA. There have been five different project launches on ApeSwap so far.
GHANA is an innovative BANANA derivative token that was created to help limit the activities of whales. For a user to have the GHANA token, that user will need to burn BANANA. Minting the GHANA token comes with a 28% burn accompanied by another 2% reflect fee. The implication is that 28% of 1 BANANA will be burnt while 2% of the new GHANA is redistributed to the current holders. Therefore, for every 1 BANANA, a user will get 0.7 GHANA.
Just like ApeSwap has its own token offering, it also has its version of the NFT project called Non-fungible Apes. There are currently about 1000 NFAs in existence. This is similar to the approach adopted by CryptoPunks to create a limited number of NFTs. The NFAs were auto-generated, and they come in 5 tiers. The tier 5s are the fewest, and they are more expensive. On the other hand, there are more tier 1s, and they sell for the least amount.
According to Dapp Radar, ApeSwap has been in the top 10 of all NFT projects on any day they have anyone for sale. They are currently building a utility strategy around their NFAs. Anyone who buys one will have early and exclusive access to different areas of the ApeSwap ecosystem.
This program is designed to help support new and upcoming projects that chose ApeSwap as their primary DEX. They provide coaching and mentorship sections for these projects, and there are also rewards for every project that completes the program.
Although ApeSwap decentralized exchange might have everything going for them, it is too early to judge. There have been several DEX projects that came with a bang and then fizzled out almost immediately. Therefore, users need to be very careful jumping onto any yield farming exchange out there.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.