A decentralized perpetual exchange protocol
Positioned as a stable ecosystem that prioritizes decentralized governance, disintermediation, and provides a self-adjusting interest rate mechanism, ApeX is a breakthrough protocol that has the potential to become the standard for all crypto derivatives platforms. .
SINGAPORE, April 15, 2022 (GLOBE NEWSWIRE) — Over the past few years, the future of finance has been riding the wave of decentralization at speeds previously unimaginable. In keeping with a fundamental overhaul of how money works, with a focus on open source code and permissionless networks, Summit is a decentralized, permissionless, non-custodial platform that allows the creation of perpetual exchange (funding) markets on any pair of tokens. Perpetual swaps are derivative contracts that allow two counterparties to enter into a transaction on margin, where settlement does not occur until one party terminates the contract.
The state of ApeX
It was a rocky start for ApeX, having successfully launched a beta version of the protocol on the Arbitrum mainnet, completed its seed fundraiser, and sold a total of 4,580 unique NFTs to their users. With a total fixed pre-mined supply of 1 billion tokens, $APEX represents value and utilities such as governance, protocol incentives, and staking for its users.
Across crypto and beyond, the key question asked by many is: what is more profitable in the long run: holding or trading? Along with this question, another follows: Which investment is safer, staking or NFTs? ApeX argues that there is no single investment advice in today’s DeFi world – ROI depends on the platform used.
The 3 pillars of ApeX’s value proposition
The core of the ApeX protocol is to create a completely permissionless, globally accessible perpetual contract protocol. The ability to trade on the ApeX protocol without the need for an account or verification opens up the world of trading to anyone with internet access.
ApeX operates on three pillars:
Completely without permission — No KYC or AML restrictions. Most DeFi platforms require some form of KYC/AML verification before users can use their services. Believing that this creates unnecessary friction for end users and goes against the ethics of a truly permissionless system, ApeX has taken a stand against KYC/AML restrictions.
Liquidity in perpetuity — A protocol designed as a foundation for future applications in multiple financial verticals, ApeX believes it is essential to provide users with a way to take advantage of providing liquidity without any constraints or time limitations.
Full resource support — As a means of transacting value across borders and economies leveraging blockchain technology, crypto-assets are more than just tokens. ApeX’s ultimate goal is to become a one-stop-shop for all exchange needs.
ApeX Protocol is funded and supported by global investors
More than providing decentralized solutions, ApeX also prioritizes the ability to provide stable liquidity and support the development of the ApeX protocol. ApeX is backed by global partners that include Dragonfly Capital Partners, Jump Trading, and Tiger Global Management, who will support the development of the solutions that will transform the state of DeFi.
What differentiates ApeX from other perpetual exchange protocols
ApeX argues that the most important features of a perpetual exchange protocol are the design of the market maker, the pricing formula, and the risk management system. The three domains must work together seamlessly to ensure fair pricing, efficient price discovery, and low risk. Two main features of the ApeX protocol set it apart from other protocols on the market.
1. Elastic Automated Market Maker (eAMM)
Elastic Automated Market Maker (eAMM) is a self-balancing system that allows the creation of on-chain derivatives. It has a pool of liquidity which is used as collateral to back all positions taken by traders. This allows traders to take leveraged long or short positions without the need for counterparties, unlike traditional centralized exchanges that offer spot and forward trading. eAMMs are elastic because they expand and contract depending on the amount of funding needed for derivatives markets at any given time, so more liquid markets will have larger eAMMs than less liquid ones.
2. Value controlled by protocol
ApeX provides a Protocol Controlled Value (PCV) system, which means the protocol keeps track of all open positions for each user and maintains a record of their collateral status. PCV also ensures that all users have enough collateral to back their positions and also encourages traders to under-collateralize their positions to maximize profits. This model works well for ApeX because it requires no third-party or third-party liquidation.
The future of Apex
Over the past three months, the ApeX protocol has seen rapid growth and change in its platform. Every week, new users join the ApeX protocol as token holders, community members, and traders on the exchange. Planning to launch V1 of the ApeX protocol in the first half of 2022, the project focuses on creating a bonding program and launching an advanced trading experience on a multi-chain platform.
ApeX operates on an elastic automated market maker (eAMM) model, with the constant product formula being at the heart of price discovery. The design philosophy of eAMM is novel and should reduce some of the friction present in creating decentralized liquidity pools. By creating a protocol that supports true decentralized trading with collateralized assets, ApeX offers traders full custody of their funds and protection against market crashes, making it an attractive choice for current and future users.
In the coming months, ApeX has also prepared different programs to incentivize their users, for example, cash mining programs, referral programs, staking programs and others. NFT holders can enjoy an 8% discount on lifetime transaction fees and are eligible to enter their NFT Sweepstakes to win up to over $120,000 APEX.
ApeX is positioned to be a stable protocol and ecosystem for the following reasons: the incentive structure, which rewards $APEX holders for participating in governance; disintermediation — no custodians, no trusted third parties; and a self-adjusting interest rate mechanism. The potential of this protocol can be seen in the many use cases, such as tokenized fiat on-ramps, price arbitrage, synthetic short selling, and hedged betting. Overall, ApeX is a well-built and revolutionary protocol that has the potential to become the standard for all crypto derivatives platforms.
Official ApeX Links