What is ApeSwap? Here’s All You Need to Know

What is ApeSwap? Here’s All You Need to Know
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Learn more about the platform sending DeFi monkeys to the moon

Between innovations in decentralized finance and a strong and engaged user community, ApeSwap is the multi-chain platform of the hour. What is ApeSwap? How do I swap, stake, or farm tokens there? What about sustainable liquidity mining? This article will answer these and many other common questions about ApeSwap. Read on!

What is ApeSwap?

ApeSwap is an automated market maker (AMM), yield farming, and staking platform on BNB Chain, Polygon, and Ethereum.

Launched in 2021, it is already a leading decentralized exchange bringing innovation to decentralized finance (DeFi), as the DappRadar Ranking confirms.

The DeFi platform is overseen by the ApeSwap Decentralized Autonomous Organization (DAO), which ensures that the community has the power to decide the future of the project.

Interestingly, the application was actually forked from PancakeSwap and retains much of the same useability.

How does ApeSwap work?

As a DeFi platform, ApeSwap enables anyone to take part in financial transactions backed up by blockchain technology.

Although it was initially built on the BNB Chain, ApeSwap is now also integrated with the Polygon and Ethereum networks. This way, users benefit from the security, speed, and low transaction fees.

As a result, ApeSwap is a much more viable option for smaller retail investors and the general public wanting to engage with DeFi solutions.

What are ApeSwap’s Native Tokens?

There are two native tokens in the ApeSwap ecosystem, $BANANA and $GNANA. They were both built on BNB Chain, but have very different functions that complement each other.

$BANANA Token

As ApeSwap’s primary native utility token, $BANANA serves many purposes on the platform to incentivize liquidity. As you already know, it allows users to stake, pool, and earn more BANANA tokens with an APY up to 600%.

Track ApeSwap BANANA token price
Track $BANANA with the DappRadar Token Explorer

The $BANANA token is available on ApeSwap for purchase, but you can also get in using DappRadar’s Token Swap.

$GNANA Token

As for the $GNANA token, also known as Golden Banana, it is ApeSwap’s governance token. It was designed for the platform’s most loyal community members who are worthy to participate in governance. Furthermore, $GNANA holders also get to benefit from passive farming and exclusive pools.

The only way to get $GNANA is by buying it with $BANANA on ApeSwap.

What can I do with ApeSwap?

ApeSwap goes beyond simply trading cryptocurrencies. The DeFi platform offers users a variety of ways to invest. Take a look at what you can do on ApeSwap below.

Swapping tokens on ApeSwap

As the name suggests, swapping is ApeSwap’s main function. The DEX supports a wide range of tokens on BNB Chain, Polygon, and Ethereum.

This way, you can easily convert one cryptocurrency into another without having to go through a centralized exchange.

How to swap tokens on ApeSwap

The core offer is the exchange which allows users to perform token swaps and earn $BANANA. As with all exchanges, there are fees to consider.

Every token swap on BNB Chain comes with a 0.3% swap fee in BNB, 0.05% of the swap fee will go to the dev wallet. The rest goes back to the community.

Lending and Borrowing on ApeSwap

The ApeSwap Lending Network enables you to lend and borrow crypto assets with other users on the platform. This is a great way to earn interest in your digital assets.

Staking on ApeSwap

Another feature on ApeSwap is staking. This means you can lock up your $BANANA or $GNANA tokens in return for rewards from partner projects.

For example, you can place your $BANANA and $GNANA tokens in Staking Pools to earn rewards from partner projects.

Join Initial Ape Offerings on ApeSwap

An Initial Ape Offering (IAO) is a fundraising method utilized to launch new tokens and bring liquidity to those tokens. By participating in IAOs, you can get involved with exciting new crypto projects that are launching on the ApeSwap platform.

In general, you need $BANANA-BNB Liquidity Provider (LP) tokens to participate in an IAO. Essentially users are trading LPs for the token that is being launched.

In an IAO, the project gets the BNB, and ApeSwap burns the $BANANA. To participate in an IAO and see which are coming up, visit ApeSwap.Finance/IAO.

ApeSwap utilizes a method known as “Overflow,” where users can subscribe as much or as little as they want to the IAO. The more you put in, the more you will get, and you’ll get back anything that doesn’t get spent.

Providing Liquidity on ApeSwap

As an AMM, ApeSwap also allows you to add liquidity to the DEX. When you contribute a pair of tokens to a liquidity pool, you receive a liquidity provider (LP) token in return.

Holding LP tokens in your wallet enables you to take part in the trading fees of each transaction using that liquidity combination. This is what is called Liquidity Mining.

Moreover, you can stake LP tokens in ApeSwap’s Yield Farms or Maximizers to earn $BANANA.

ApeSwap’s Sustainable Liquidity Mining & DappRadar

DappRadar played a massive role in ApeSwap’s brand new program launched in July 2022. The Sustainable Liquidity Mining program, as the name suggests, introduces the first way to sustainably source liquidity.

How? By allowing users to sell their LP tokens in exchange for ApeSwap’s Treasury Bills.

Treasury Bills allow you access to buy tokens at a discount and are also non-fungible tokens (NFTs) that represent the specific tokens and vest for a certain period. Almost like a yield-generating NFT.

Liquidity providers on ApeSwap can earn RADAR Jungle Bills by providing liquidity in the BNB-RADAR pool. Each bill comes with a specific discount set by ApeSwap that fluctuates according to the tokens’ prices.

Find out the step-by-step process to obtain them in our complete article DappRadar and ApeSwap RADAR Liquidity Mining Program.

How to Get Started With ApeSwap?

Now you are aware of the main things you can do on ApeSwap, it’s time to see to get there.

The first step to start using ApeSwap is to get yourself a web3 wallet and some cryptocurrencies. Watch the video below to learn a bit more about wallets:

Once your wallet is set up, you just have to connect it to the platform by clicking the “Connect” button in the top right corner of the ApeSwap website. Unlike traditional finance platforms, ApeSwap does not require you to register and share your ID. So, you’re ready to go.

It’s worth reminding that, as with any other decentralized cryptocurrency project, you are responsible for your own safety and funds.

Therefore, you shouldn’t trade with more than you can afford to lose, and always store your tokens in a secure wallet.

ApeSwap’s Future Plans

Just like the entire web3 industry, ApeSwap is in constant development and can launch product updates anytime. In July 2022, the project’s official Medium published an overview of future priorities for building the ApeSwap DeFi Hub.

ApeSwap Priorities July 2022

Furthermore, ApeSwap is very open to community and user participation. All users are invited to contribute ideas and things they would like to see on the trading platform.

Keep Learning About ApeSwap With DappRadar

DappRadar is proud to have ApeSwap as a partner and is happy to continue to track its development and share as much knowledge as possible about the platform. Now you know what ApeSwap is and how to take advantage of it.

If you want to continue learning more about DeFi projects and the exciting world of Web3, follow our blogYouTube channel, and Twitter.

The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research.

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