ApeSwap Announces Launch on First Layer 2 Chain with Arbitrum
ApeSwap has been working since its inception to bring innovative DeFi solutions to its community of users and partner projects. This has manifested itself in many forms, including new products, new strategic relationships, and multiple cross-chain expansions. Today, ApeSwap is excited to announce that the innovation continues with a launch on a new layer of the blockchain ecosystem: Arbitrum.
What is Arbitrum?
Arbitrum is a technology suite designed to scale Ethereum. You can use Arbitrum to do all things you do on Ethereum — use Web3 apps, deploy smart contracts, etc., but with faster and cheaper transactions. Arbitrum’s flagship product, Arbitrum Rollup, is an Optimistic rollup protocol that inherits Ethereum-level security. As a layer 2 solution built over Ethereum, Arbitrum leverages ETH as the asset used for gas to facilitate transactions on the network.
Arbitrum has been attracting a significant amount of user and project interest recently, nearly doubling in TVL since the start of 2023. ApeSwap users have been expressing interest in Arbitrum’s capabilities, and the team of core contributors have taken notice. After a thorough review of what Arbitrum has to offer, ApeSwap is excited to launch its innovative DeFi products on Arbitrum not only to allow existing users to take advantage of Arbitrum’s value proposition, but also to attract new users to the ApeSwap ecosystem.
ApeSwap Products Launching on Arbitrum
Decentralized Exchange: ApeSwap’s primary product offering is a multi-chain decentralized exchange (DEX) that facilitates permissionless trading of cryptocurrency assets via smart contracts. Users can swap tokens on BNB Chain, Polygon, Ethereum, Telos, and now Arbitrum on the ApeSwap DEX.
Users can also add liquidity to the ApeSwap DEX to receive liquidity provider tokens in the form of APE-LPs. Holders of APE-LPs receive a portion of the trading fees (.05%) paid by users who swap the two tokens that make up the APE-LP.
The ApeSwap DEX also features a Smart Router, which will route a token swap through external liquidity sources as needed to ensure that the user doesn’t have to switch between DEX services to complete their swaps.
Treasury Bills: ApeSwap’s Treasury Bills allows crypto projects to create sustainable liquidity. Instead of traditional yield farms, where projects “rent” liquidity by paying token rewards to liquidity providers, Treasury Bills allow users to sell LP tokens to purchase an NFT that represents a certain amount of project tokens at a discounted price. The tokens vest over an amount of time set by the project selling the Bill.
Launch Timeline
ApeSwap is excited to get started with Arbitrum by bringing our unique combination of decentralized exchange and bonding products to the hottest L2 on the market right now. Here are the key dates to keep in mind:
March 12th: Multichain enables bridging of BANANA to Arbitrum
March 14th, 16:00 UTC: ApeSwap DEX goes live on Arbitrum
March 14th, 16:00 UTC: ApeSwap Treasury Bills code deployed on Arbitrum and open for partnerships
March 21st: Onyx launches using APE-LPs on Arbitrum
March 29th: Onyx Treasury Bills go live on Arbitrum
How to Use Arbitrum with ApeSwap
Connect your wallet: The simplest way to add the Arbitrum network to your preferred crypto wallet is to visit https://arbiscan.io/, scroll to the bottom right of the page, and click “Add Arbitrum One Network”.
Bridge funds: The official Arbitrum bridge is available at https://bridge.arbitrum.io/. Note that you’re only able to bridge funds from the Ethereum mainnet using this bridge. If you’d like to bridge funds from other chains, you can use Multichain (multichain.xyz). As of March 14th, Multichain will support bridging of BANANA to Arbitrum. If you want to bridge and swap tokens at the same time, you can use LiFi’s Jumper.Exchange.
Get involved: If you’d like to see ApeSwap use BANANA emissions on Arbitrum for rewards, use BANANA saved through the Excess Farm on Arbitrum for Treasury Bills, or you have any other unique proposals, we invite you to start a discussion on the ApeSwap Commonwealth forum and share it with the community!
Featured Launch Partner: Onyx
Note: the launch details and timeline below are subject to change.
Onyx is the first project that ApeSwap is partnering with to leverage APE-LPs to build liquidity on Arbitrum. Onyx aims to solve issues inherent to yield farming protocols with an experimental, innovative model that puts ONYX holders first, specifically:
- Leveraging sustainable liquidity mining (e.g., simultaneous bonds, farms, and pools)
- Discouraging bad actors (farmers abusing ONYX emissions) and rewarding good actors (ONYX farmers, holders, and bill purchasers)
Long term Onyx DAO is going to place an emphasis on creating innovative prediction markets & vaulting strategies.
ONYX Emissions
Initially, Onyx will offer an emissions rate of 1 ONYX per second. However, either after 24 hours have elapsed OR a specific threshold in deposit fees have been reached, a large Stake ONYX, Earn USDC pool will be deployed and emissions will be increased to start “ONYX Mania”, a one-time farming frenzy lasting for three days.
Over the subsequent days, the emissions will be linearly lowered according to a predefined schedule. The farm emissions are expected to stop completely after about 1 month, but pools and bills will continue past that.
In general, Onyx is looking at initial emissions as a quick bootstrapping phase, which will be replaced by longer-term bonding efforts & sustainable revenue models while still rewarding ONYX holders.
Onyx Products & Services
Yield Farms: There will be approximately 12 launch farms (listed below) with another 10 or so expected to come in the subsequent few days throughout the initial launch.
- ONYX/ETH
- BANANA/ETH
- ETH/USDC
- ETH/USDT
- USDC/USDT
- WBTC/ETH
- DAI/ETH
- LINK/ETH
- MAGIC/ETH
- DPX/ETH
- CRV/ETH
- UNI/ETH
Staking Pools: At launch, two pools will be available on Arbitrum: a Stake ONYX, Earn ONYX manual pool and auto-vault, and a Stake ONYX, Earn ETH pool. Additional pools will be deployed using deposit fees, and are expected to reward in blue chips or stablecoins, e.g., Stake ONYX, Earn USDC, ETH, BTC, etc.
Currently, the plan is to use the deposit fees for ONYX pools as follows (subject to change):
- 75% up to $200,000
- 50% between $200,000 — $500,000
- 25% above $500,000
Treasury Bills: Expected to be deployed on ApeSwap eight days after go-live (March 28th, 16:00 UTC)
Follow Onyx on Twitter (https://twitter.com/OnyxDAO) and join the Onyx Discord (https://discord.gg/q4A4qZYk) for the latest news and updates!
Next Steps
ApeSwap is committed to building sustainably on Arbitrum and is excited to see what the future holds in terms of opportunities on this great L2. ApeSwap has been in close contact with the Arbitrum team regarding ways to more fully realize the potential of this partnership. As always, users are encouraged to DYOR — if you have any questions about ApeSwap’s efforts on Arbitrum, you can reach us on Twitter (https://twitter.com/ape_swap) and Telegram (https://t.me/ape_swap)!
