Learn more about the platform sending DeFi apes 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!
Contents
- What is ApeSwap?
- What are ApeSwap’s native tokens?
- What can I do with ApeSwap?
- How to get started with ApeSwap?
- ApeSwap vs other exchanges
- Discover top DeFi projects with DappRadar
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 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%.
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, Ethereum, Arbitrum, and Telos EVM. This way, you can easily convert one cryptocurrency into another without having to go through a centralized exchange.
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 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.
⛏ The future of sustainable liquidity mining starts now!
— ApeSwap (@ape_swap) July 6, 2022
Join @DappRadar on their journey to 100% protocol-owned liquidity 🔥
🚜 Farm & Pool live at 22:00 UTC
🌴 Treasury Bills launch Friday
⏬ Read all about it belowhttps://t.co/LaOA8Izh6e
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.
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 vs other exchanges
ApeSwap, Uniswap, Sushiswap, and PancakeSwap are all decentralized exchanges (DEXs) with their unique features and functionality. Uniswap and Sushiswap were built on the Ethereum network, while ApeSwap and PancakeSwap originated from BNB Chain.
Though forked from PancakeSwap, ApeSwap carves out its own space through unique tokenomics, a distinct governance model, “Initial Ape Offerings” (IAOs) for capital raising, a lottery system, etc. Determining the “best” among these platforms largely depends on individual user preferences and requirements.
Discover top DeFi projects 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 blog, YouTube channel and Twitter.
Useful links
- ApeSwap’s BANANA Token: All You Need to Know
- Decentralized Finance (DeFi): DappRadar’s Ultimate Guide
- What Is BNB Chain and How Does It Work?
- Top DeFi Dapps to Watch out for in 2023
- DEX Vs CEX: Which is Right For You?
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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