ApeX is an NFT DEX(AMM) and NFT market aggregator with the support of cross-chain technology. All zkApes NFTs holders will receive proportionate dividends from the income of ApeX.
What is ApeX DEX?
ApeX DEX is an Automated Market Maker (AMM) protocol built on zkSync era mainnet that facilitates NFT-to-token swaps (and vice versa) using customizable binding curves. ApeX supports ERC721 NFTs, as well as all ETH and ERC20 tokens.
Liquidity Providers (LPs) can deposit assets into one-sided buy and sell pools, or two-sided trading pools that buy and sell NFTs with optional spreads for transaction fees. LPs will receive equity NFTs when liquidity pools created, these NFTs are the proof of pools owner.
Similar to other floor NFT protocols, ApeX does not distinguish between different ERC721 IDs. Pools willing to buy or sell NFTs will return the same price regardless of which NFT is sent to or from the collection.
How Does ApeX DEX Work?
ApeX DEX is an AMM protocol for NFTs, which means that users buy from or sell into liquidity pools instead of directly trading between themselves. If you’re familiar with Uniswap, it’s a similar concept but for NFTs.
Here’s how it works:
1. Liquidity providers deposit NFTs and/or ETH (or an ERC20 token) into liquidity pools. They choose whether they would like to buy or sell NFTs (or both) and specify a starting price and bonding curve parameters.
2. Users can then buy NFTs from or sell NFTs into these pools. Every time an item is bought or sold, the price to buy or sell another item changes for the pool based on its bonding curve.
3. At any time, liqudity providers can change the parameters of their pool or withdraw assets.
What Is Liquidity Pool?
A pool, or liquidity pool, is a smart contract that allows you to instantly swap between two assets. On ApeX, the most common type of pool is an NFT<>ETH pool, which means that anyone holding NFTs from that collection can instantly swap them for ETH, or vice versa.
Pools use a bonding curve to determine the relative price at which one asset is traded for another. The more an asset is bought from the pool, the more expensive it becomes. Conversely, the more an asset is sold to the pool, the cheaper it becomes.
Ideally, a pool contains some amount of both assets, enabling users to swap back and forth between them. However, it’s also possible to create a pool with just one asset, meaning that users will only be able to buy that asset from the pool.
A bonding curve is a mathematical formula which defines the relationship between an asset’s price and its supply. Bonding curves are a key feature of automated market makers since they are used to algorithmically adjust asset prices.
At launch, ApeX supports three types of bonding curve: linear, exponential and XYK.
Linear
With a linear rise, the price of an NFT is increased by a flat amount (called rise) every time an item is bought from the pool. Conversely, the price of the NFT is decreased by that same flat amount every time an item is sold to the pool.
For example, a liqudity provider may create an NFT<>ETH pool with a Start Price of 1 ETH and a rise of 0.1 ETH. Assuming they provide enough liquidity, the price of an NFT will increase to 1.1 ETH after one item is purchased from the pool. After a second item is purchased, the price will increase to 1.2 ETH, and so on and so forth. At any point, if an NFT is sold to the pool, the price will decrease by 0.1 ETH.
Exponential
With an exponential rise, the price of an NFT is increased by a certain percentage (also called rise) every time an item is bought from the pool. Conversely, the price of the NFT is decreased equivalently every time an item is sold to the pool.
To calculate the equivalent decrease, convert the the percentage to a decimal index (e.g. for 50%, the index would be 1.5) and divide the price by this number.
For example, a liquidity provider may create an NFT<>ETH pool with a Start Price of 2 ETH and a rise of 50%. Assuming they provide enough liquidity, the price of an NFT will increase to 2 + 50% = 3 ETH after one item is purchased from the pool. After a second item is purchased, the price will increase to 3 + 50% = 4.5 ETH, and so on and so forth. At any point, if an NFT is sold to the pool, the price will be divided by 1.5.
XYK(Constant Product)
With an XYK curve, the price of an NFT is adjusted every time an item is bought from or sold to the pool, such that the product of two virtual reserves remains constant after every trade. These virtual reserves correspond to the number and value of NFTs the pool will buy or sell.
What is ApeX Aggregator?
To bring users the first-rate experience they’ve come to expect with ApeX, zkApes built the aggregator to deliver better prices, faster indexing, safer smart contracts, and efficient execution on zkSync. ApeX will include all mainstream NFT trading platforms on zkSync, users only need to trade NFTs of different platforms on ApeX.
Our Strengths
- ApeX Aggregator acts as a gateway to the fragmented crypto market, aggregating the liquidity, order book depth, and trading pairs of the market into one portal.
- Highly aggregated information: such as transaction volume, floor price, transaction price, quantity, top holders, top buyers, etc.
- Highly aggregated operations: Users can view, trade and purchase NFTs on all markets on zkSync through one platform.
- Improve transaction efficiency: information and operation aggregation, easy price comparison decision, ApeX will support Mint Square, OpenSea, X2Y2, LooksRare, Sudoswap, Larva Labs, NFT20, and NFTX.
- Diversified payment methods: any token can be used for payment on ApeX NFT aggregation platform.
- Trustless and open source. ApeX is committed to being trustless, transparent, and open source. We’ve brought those same design principles to NFTs and open-sourced all of our front-end code, making us the first major NFT platform on zkSync to do so.
What is ApeX Cross Chain? (Coming soon)
We have built a blockchain interoperability protocol based on CelerNetwork, which is the best inter-blockchain and cross-layer communication platform on zkSync. By Celer Inter-chain Message SDK, zkApes community will enjoy the benefits of a diverse multi-blockchain ecosystem with the simplicity of a single-transaction UX, all from a single chain. We will support Ethereum mainnet, BSC, Arbitrum and Solana blockchain at the first stage, more blockchains will be added according to community’s feedback.
ApeX Locking and earning (Coming soon)
ApeX will charge 0.3% fee for every transaction, this is mandatory, 90% will allocated to zkApes NFT holders, 10% is for technology development.
zkApes NFT holders can lock their Apes into the Apeverse DAO to receive veApe, they will receive an NFT as locking credential, this NFT is transferable. More zkApes NFTs locked and the longer they lock for, the more veApe they receive. veApe allows you to receive dividends from the income of ApeX and vote in governance.
What are veApe?
veApe stands for earning power from ApeX. They are your NFTs locked for dividends and voting. The number of veApe you will receive depends on how long you lock your zkApes NFTs for. The minimum locking time is one week and the maximum locking time is four years.
The longer you lock your zkApes NFTs for, the more earning power you have. You can lock 1 zkApes NFT for a week to have a 99.792 veApe weight, and so on.
Remember locking is not reversible. The amount of veApe received will depend on how much and how long you lock for.
