ApeSwap is a decentralized cryptocurrency exchange built on Binance Smart Chain and Polygon. It was launched in February 2021 with a mission of making finance more transparent, fair, and accessible to everybody.
Anybody can list any BEP-20 token on ApeSwap and give traders the possibility to trade that token on their mobile or desktop devices. For that, token creators need to add liquidity to a corresponding pool. The ApeSwap ecosystem itself utilizes two tokens: BANANA and GNANA, each serving a specific purpose with more details on each of them provided below.
BANANA is the native utility BEP-20 token of ApeSwap. As it does not have a maximum supply being inflationary by design, BANANA is reduced through regular token burns.
The main function of the token is to stimulate the provision of liquidity to the exchange. It can also be used to stake, earn other tokens, acquire GNANA, and unlock exclusive features on ApeSwap. Users can earn BANANA through yield farming, staking, adding liquidity to the ApeSwap DEX, and burning vaults. BANANA can be purchased with other BSC or Polygon tokens via the platform’s swap service.
The Golden Banana or GNANA is the governance token created on the Binance Smart Chain. Designed to reward loyal ApeSwap community members, the token has no maximum cap. If someone wants to buy GNANA and there is none in the treasury, new coins are simply minted. The token is backed at a 1:1 ratio by BANANA and can only be exchanged for BANANA on the ApeSwap platform.
GNANA holders receive several benefits. First, they get a share of the transfer fee proportional to their holdings. Also, they can vote on governance proposals and stake GNANA in special pools to earn BANANA or other tokens.
Traders pay a 0.20% fee for each swap with 0.15% of this amount being added back to the liquidity pool of the swap pair they traded on. Half of all trading fees is used to buy back and burn BANANA. To purchase GNANA there is a 28% burn fee and the 2% reflect fee, resulting in a 30% cost. A part of this amount (0.05% on the BSC and 0.15% on Polygon) is sent to the ApeSwap Treasury while LP holders get the remainder.
In addition to the token exchange, ApeSwap offers a variety of DeFi products and services including Initial Ape Offerings, staking pools, yield farms, NFTs, and much more.
ApeSwap provides crypto projects with fundraising capabilities through Initial Ape Offerings (IAOs). Users have to obtain BNB and GNANA to participate in token sales. All overflow contributions are returned to their owners after campaigns are closed. The platform offers two types of IAOs: official IAOs, and self-serve IAOs. Projects that aspire to become official ApeSwap IAO partners are carefully reviewed by the team. If they pass the qualification they get ApeSwap marketing support. At the same time, ApeSwap’s self-serve IAO platform gives an opportunity to any new project to organize a fundraising campaign on the BSC. All new listings must pass a standard due diligence check.
Staking Pools help developers to distribute their assets. Users can stake various assets in pairs with BANANA and earn up to 192% annual profit.
Farms are used to increase liquidity for popular trading pairs on ApeSwap DEX. In order to yield farm, users must provide liquidity to one of the liquidity pools and receive a liquidity pool token (APE-LP), which can be further staked to earn BANANA. The APR in farms may reach 250% for some pairs.
Speaking about NFT collections, it’s worth adding that ApeSwap has created two non-fungible token sets on BSC. These are Non Fungible Apes (NFAs) which represent a set of 1,000 unique digital apes with randomly generated characteristics, and 5,700+ Non Fungible Bananas (NFBs).
10% of all trading fees collected by ApeSwap are used to purchase premium cryptocurrencies and stablecoins and leave them permanently in Burning Vaults. The burning vault of BANANA brings 0.21% daily API or 116.24% yearly API. A portion of the rewards earned from these vaults is used to buy back and burn BANANA.
Making the security of users' and partners' data and funds the highest priority, ApeSwap has passed 3 audits and fixed all the discovered issues. On March 5, 2021, BSC Gemz completed the project’s audit, which found only a few low risks and easy fixes. On May 5, 2021, CertiK conducted another audit of the ApeSwap smart contract and did not reveal any critical vulnerabilities at all. On June 17, 2021, DeFiYield performed a comprehensive examination of the platform and classified one risk that was quickly resolved by the ApeSwap team.
The developers’ team sticks to the most trusted DEX smart contracts eliminating risks and ensuring the security and longevity of ApeSwap. For instance, ApeSwap relies on Uniswap V2 code while its Polygon DEX was deployed with the code that was used on its BSC-based version. Besides, the ApeSwap Polygon Farm code is identical to Sushi which is well-audited and battle-tested.
ApeSwap team and partners
ApeSwap was founded by a team of 5 monkeys, as they call themselves not willing to disclose their real identities. Ape Guru is a full-stack developer with 10+ years of experience with a focus on blockchain and cryptocurrencies. ApeTastic is a smart contract developer who performs all critical tasks for the team. Harambe Nakamoto is obsessed with tokenomics, analytics, engineering, and yield farming. Donkey Kong is a business development and marketing expert who is responsible for liaising with new projects. Obie Dobo, the grandfather of DeFi, is the king of the ApeSwap Community Jungle. Additionally, the project employs a dedicated team of 50+ crypto enthusiasts all around the globe.
ApeSwap has established relationships with 100+ companies and projects across the whole DeFi industry. For example, its partner ApeMex exchange offers leveraged trading that uses ApeSwap's DEX in the background. Liquid Collectibles, an NFT liquidity maker, has facilitated the initial auction sale on the ApeSwap platform.