With more adoption of cryptocurrency into several mainstreams, several decentralized exchanges are emerging in the Defi ecosystem. They present more innovative features that attract more users and investors into decentralized finance.
Moreover, they offer great beneficial opportunities and profits, which originally were lacking in the crypto industry.
The advent of the ApeSwap Finance protocol on the Binance Smart Chain puts a facelift for the blockchain in the industry. Running on BSC means a faster transaction rate with a lower cost than most protocols on the Ethereum blockchain.
This ApeSwap Finance review will explain everything from the token $BANANA to its functionality in the DeFi space.
What is ApeSwap Finance?
ApeSwap Finance is an Automated Market Maker (AMM) built on Binance Smart Chain for yield farming and staking. It’s a decentralized exchange that gives users access to different financial markets for lending, payments, staking, and derivatives. Also, through alternative savings, users can get tokenized assets.
The protocol aims to decentralize most aspects of the traditional financial sector, such as credit, insurance, and others. Most of these services remain inaccessible by most societal members, especially those at the bottom pyramid and in underdeveloped countries.
With the use of blockchain services and crypto tokens, ApeSwap Finance pushes solutions to challenges in centralized finance. Some of these issues include mismanagement and third-party influences, hacking risks, arbitrary fees, and others. Thus, the protocol functions as a replacement to centralized institutions in loans, insurance, and derivatives.
Understanding the Operations of ApeSwap Finance
ApeSwap Finance functions as an Automated Market Marker (AMM). We’ll give a little explanation of the operations of AMMs for a clear understanding.
Traditionally speaking, trading involves the creation of order books with prices recorded in them. As a public document, traders on a platform can easily access the order books. For traders that want to buy at the seller’s price, they can input their bid.
However, there could be a mismatch between the price of the sellers and the biding price from potential buyers. Thus, there will be no trading occurring until one of the parties compromises with its price stand.
Normally, both the seller and the buyer want to make a profit. So the seller goes for higher prices while the buyer looks for lower prices. When the two stick to their stands on prices, there will be no market.
Thus, the only option is for a trader that will buy the product at the seller’s price. That forms the role and function of Market Makers.
The market makers will trade with sellers that have high prices for their products. Also, they trade with buyers that demand low prices for products.
Thus, in the Defi ecosystem, ApeSwap Finance as an Automated Market Maker (AMM) operates with technological codes or smart contracts. These help to set a definite price for digital assets that trade on the platform. Through such automation, customers will always get the market prices.
ApeSwap Finance Founders
The ApeSwap Finance runs as a community of which the founders refer to themselves as the community Monkeys. The ApeSwap Finance community has a founding team of five Monkeys.
- Ape Guru – Half-Monkey, Half-Machine
- Apetastic – A True Code Monkey
- Harambe Nakamoto – Never Forget
- Donkey Kong – The Spark Plug
- Obie Dobo – The Zoo keeper
Other behind-the-scene team members operate in business development, code pushes, designs, and other aspects for ApeSwap Finance.
ApeSwap Finance Token (BANANA)
The ApeSwap Finance has a native token known as BANANA, often symbolized as $BANANA. This stands as the utility token for the protocol as you can’t do any transaction without the BANANA token. It takes the holding of the BANANA for a user to participate in any activity on the platform.
One of the ways to acquire the token is by buying the token from the exchange or any other platform the sells the token.
ApeSwap Finance has a market cap of over $235 million. There’s no maximum token supply limit yet for the cryptocurrency. Its circulating token supply is about 52,014,622 BANANA tokens. At the time of writing, the price of $BANANA is at $4.52 per token, representing a 6.04% surge within the last 24 hours.
Also, ApeSwap Finance has moved high up in the entire DEX market space through its token. As a result, the use of BANANA for token pairs in liquidity pools has increased tremendously.
The protocol has over 107 liquidity pairs, including BANANA/BNB, BANANA/BUSD, BTC/BNB, BNB/BUSD, etc.
Golden Bananas (GNANA)
The ApeSwap Finance exchange is a unique protocol with fascinating features to top it. The protocol has another coin known as Golden Bananas (GNANA) that serves as its governance token.
Acquiring golden bananas comes the payment of a 28% burn fee. This means that it takes the burning of 28% of your banana holdings and a 2% reflect fee. So, the total cost runs to 30% lost on your holdings to transform them into golden bananas. Thus, the trading of 1 BANANA gives you 0.7 GNANA.
Getting GNANA surges the value of BANANA through the burning process. Also, it serves as a penalty for whales from shuttling in and out of GNANA through the 30% loss that follows the moving process.
Furthermore, the 2% reflect fee from the moving process goes to GNANA holders. Thus, the protocol incentivizes the GNANA holders according to the holdings in their wallets.
However, the token must remain unstaked for you to get a portion of the reflected fees. So, as users make transactions and pay the 2% reflect fees, the GNANA holders gain for their unstaked tokens in their wallets.
Nevertheless, if you desire more profitable measures through your GNANA token, you can stake them. There are some pools with high rates than the standard pools for your token. Usually, GNANA staking pools for BANANA will always give high output than a standard staking pool.
Moreover, GNANA as a governance token empowers users to vote on changes on the ApeSwap Finance ecosystem. Though that’s the limit to its current functionality, there’s a future hope for more additions.
Besides governance, the GNANA tokens also have the following benefits:
- Exclusive for Pool access
- Exclusive for IAO access
- Passive farming
ApeSwap Finance Services
Like we’ve said earlier, ApeSwap Finance aims to offer various financial services and solutions. Here are some of these services.
Lending and Borrowing
ApeSwap Finance, through its operations, gives users diverse means of profitable opportunities. For example, they can invest in digital assets or participate in several beneficial activities available in the Defi space.
The main key for most of these activities depends on the protocol’s native token – BANANA. This serves as the ApeSwap’s utility token. Thus, most of the crypto activities across the protocol incentivize users in BANANA.
The recent popularity in Defi lending constitutes the attraction core of most users. ApeSwap Finance is cashing on this move to present products that offer loans. Thus, both individuals and companies interested in the products can benefit without using any third party.
From ApeSwap Finance, investors can purchase the protocol’s native token, BANANA, for their transactions. In addition, this will enable them to lend or borrow other digital assets such as ETH, DAI, USDT, BAT, WBTC, ZRX, etc.
Furthermore, besides lending and borrowing digital assets, users can stake their cryptocurrency. ApeSwap Finance allows such users to earn interest on the platform.
Through the operations of ApeSwap Finance and its services, investors are saved from the loss of time and efforts in financial transactions. Most especially, they no longer incur costs by transacting with the traditional financial providers. All they need in lending and borrowing are encamped for them in Defi through ApeSwap Finance protocol.
Just like other Defi applications, ApeSwap Finance offers yield farming that goes with high rates. In addition, there’s the opportunity for the combination of two tokens in the process. For instance, combining BANANA and BNB gives you the BANANA/BNB liquidity pair.
Such combinations go with the highest rates as the user bears the impermanent loss risk of the liquidity pairs. The implication is that a change in the value of tokens while still in the pair affects the user’s amount. Otherwise, the tokens’ worth should be the same as when they were paired.
The concept of impermanent loss may be quite complex if you don’t fully understand it. For example, the loss can be up to 25% for a liquidity pair in some cases.
For instance, if you have a BANANA/BNB liquidity pair when BANANA is $10 per token and BNB is at $650 per token—assuming the price of BANANA surges to $30 per token while BNB value remains unchanged. Then, using the Dailydefi.org.Impermanent Loss calculator, you can get an impermanent loss rate of 13.40%.
Yield farming could be the fastest means of earning more BANANA tokens on the ApeSwap Finance platform. However, there’s every need to understand the functionality of the process before venturing into it.
Where the complexity and risk of impermanent loss are much for you through yield farming, you have other earning alternatives. For example, ApeSwap Finance rewards users for staking their BANANA holdings and other selected digital assets on certain pools.
By staking your BANANA, you can either earn of the token or other currencies. Some of the pools to use for your staking include the BANANA pool, BFT pool, ONT pool, and JDI pool. Others are the LYPTUS pool, SAFEP pool, and others.
Though the rates available in the staking pools are not as high as farming, they are considered profitable for earning. The process involved is quite simple, and there is no liquidity pairing of tokens. Instead, you have to click on the add button to stake your tokens, and your rewards will follow later.
With the ApeSwap Finance platform, it’s easy to swap tokens. Also, it’s very cheap on the platform with no ambiguity. The swapping service is quite similar to those on other protocols.
The platform boasts several swapping pairs that include some exchanges such as NUTS, CAKE, and others. In addition, there are still more pairs being added. The process is also swift; it can take 30 seconds to complete a swap transaction on the platform.
Rewards and Earning
The Defi ecosystem operates by rewarding its investors in different ways. This move has impacted and kept many users glued to decentralized applications and exchanges.
ApeSwap Finance is not left behind in the incentivization of investors. The protocol allows its users to earn through staking and locking of their holdings in some liquidity pool. Yield farming is one such way users can place their assets over a given period to earn rewards.
Through its performance, ApeSwap Finance strives to provide simplified earning means for investors and users. Investors can use its assets and get rewards from reputable liquidity pools, airdrops, and staking from its several Defi products.
Investors get rewards through the protocol’s BANANA token as they stake their assets to a desirable liquidity pool.
Before now, crypto investors employ multiple steps to achieve the goal of staking their holdings. However, ApeSwap Finance removes the complexity in the process and presents investors with simplified and easy means for their investments.
They can convert their digital assets to BANANA tokens for staking any pools. Alternatively, they can purchase BANANA tokens on the ApeSwap Finance platform for their use.
Furthermore, the protocol offers its users great investment options and some staking pools to give the best returns. It gathers real-time data through its technological algorithms. This forms the basis for its accurate recommendations.
The decentralized finance market is still new to most people even as they try to adjust to the new wave.
The Defi ecosystem offers great investment rewards to investors. The interest from yield farming and staking supersedes by multiple folds what is obtain in traditional institutions like banks.
However, the Defi space still has some notable risks hovering around it. Thus, ApeSwap Finance tends to build a hedge for its users for protection against risks associated with the use of smart contracts.
The protocol ensures no loss of value for users’ assets, either from staking or farming. Also, it gives protection against possible hacks and fraud.
ApeSwap Finance Partnership
The ApeSwap protocol is making great waves in the decentralized finance sector through operability. Moreover, the exchange is getting through some of its collaborations with other firms.
Below are some of the partners that ApeSwap Finance works with:
How to Use ApeSwap Finance?
It’s easy to use ApeSwap Finance. But, first, you’ll have to get a wallet compatible with the Binance Smart Chain. Then, move on to the ApeSwap Finance platform.
The protocol supports some crypto activities such as staking, swapping, participation in liquidity pools, and others. You can select any of these activities on the platform. There will be a request for the unlocking of your wallet when you’ve made your choice.
Once you click the ‘Unlock Wallet’ button, you need to select your wallet type from the list of the support wallets. Next, click on your wallet type. This connects you with ApeSwap Finance. After that, you can proceed to perform any of the crypto activities on the platform.
Initial Ape Offerings
Initial Ape Offerings (IAO) are fundraising activities from the ApeSwap Finance exchange. The protocol uses those opportunities to launch new tokens and to boost the liquidity of such tokens.
Using the BANANA liquidity pairs, users can participate in both the new and upcoming developments and projects. One of such pairs is the BANANA-BNB LP tokens.
You will get the pair by adding some BNB and BANANA tokens to the pair liquidity pool. This enables you to earn some BANANA-BNB LP tokens.
You can partake in an IAO by visiting the ApeSwap Finance/IAP to check out the available IAOs. Then, when you find any interesting ongoing IAO, you can proceed by buying the IAO tokens with your BANANA-BNB LP tokens.
By trading your LPs for the launched IAO tokens, you will give up your BNB tokens to the project. This will invariably mean that the $BANANA will be burnt.
On concluding the IAO sales, you can claim the IAO tokens you bought during the sales. Also, you are entitled to get back the unspent funds in the IAO sales.
Conclusion of ApeSwap Finance Review
ApeSwap Finance is one of the unique decentralized exchanges creating a huge difference in the Defi space today.
The protocol serves as a store of value in a decentralized manner through its operations. It provides decentralized financial products and instruments for the easy completion of crypto transactions. This invariably increases customers’ earnings and profits in their tradings and investments.
The ApeSwap Finance platform has no ambiguity in its usage. Even beginners can conveniently navigate its interface with ease. Being built on the Binance Smart Chain gives the protocol speed advantage in completing transactions at meager fees. Moreover, it offers users access to staking and swapping at a very cheap charge.
We can say that ApeSwap Finance is making great moves to develop exciting and intriguing means of engaging its customers. It strategizes by creating new services and crypto-related products that will retent and attract new users to the platform. This is pushing the platform as one of the best to trade and invest digital assets.
From its current stance in the Defi space and its future anticipation, ApeSwap Finance stands the chance of a bigger boom.
However, remember that the entire cryptocurrency space is very volatile. It would help if you always did your research before leaping. Ensure to consider your risk tolerance through every move you make in the industry.