Increasing rewards for core $BANANA Farms 🌴🍌
Apes, hopefully by now you have realized we are in it for the long haul 💪 And with being a long-term minded project, comes lots of opportunities to learn and grow 🤓
Above all, ApeSwap is a DEX. In our pursuit of becoming the best DEX possible for our users, we’ve realized we need to increase the incentives for the core BANANA/BNB & BANANA/BUSD pairs, while phasing out the other BANANA/token farms. We are very excited for this transition for a number of reasons, all listed below 🐵
The Drivers Behind This Transition 🚘
We are increasing the rewards for core $BANANA pairs 🍌
This is by far the biggest takeaway from this article — we are shifting rewards around to incentivize better trading pairs. This is not a decrease in overall rewards. The rewards that were being allocated to the 7 current BANANA/Token farms are primarily being moved to the BANANA/BNB, BANANA/BUSD trading pairs and the core BANANA staking pool. So the best thing you can do as an LP holder is move your BANANA from the phased out farms to these other pairs to continue to farm that juicy BANANA.
Demand for top used trading pairs 📈
If we analyze top trading pairs on our DEX and other DEX’s, it’s clear that the highest demand is for Token/BNB (or Token/ETH in the case of Ethereum based DEX’s). In order to attract more users we are going to be focusing on incentivizing liquidity for Token/BNB trading pairs go forward.
Focusing on a single liquidity pool 💧
Given how Automated Market Makers work with the liquidity pool model, we have realized it is better to have a single pool that is HIGHLY liquid, rather than multiple trading pairs that are slightly liquid. For that reason it makes the most sense to focus on one trading pair, again Token/BNB, and incentivize liquidity there.
Arbitrage 💰
We have noticed that a lot bots are having a heyday arbitraging between the price fluctuations in these BANANA/Token trading pairs. This ultimately hurts the price of BANANA and our token holders. Removing these will help support a better BANANA price over the long term.
Impermanent loss 😨
Since BANANA is still a very new token, the volatility is quite high. That opens up BANANA/Token LPs to be subject to higher risk of impermanent loss. Reducing the number of incentivized trading pairs against BANANA will help mitigate these types of losses.
How The Transition Will Occur 🤔
There are 7 other BANANA/Token farms that will be phased out. This does NOT include BANANA/BNB and BANANA/BUSD. Over the course of a single day we will phase these out, decreasing the multiplier to 0 and moving the farms to the inactive tab. Users will be able to unstake and transition their liquidity to the core BANANA/BNB, BANANA/BUSD and BANANA staking pool.
We also will be adding more BANANA staking pools for users to put their BANANA to work, starting with a pool from our most recent IAO partner JediYield on April 7th 💪
Below is a schedule of the phase out 📆
April 5th: Announcement
April 6th through 11th: Communicate to the community
April 12th, 23:00 UTC: Transition occurs
April 13th: Continue building to the moon
These are the farms that will be phased out, they are marked with a red border:
- BANANA-BAKE
- BANANA-CAKE
- BANANA-GFCE
- BANANA-BIFI
- BANANA-NAUT
- BANANA-BREW
- BANANA-SUSHI
Increase to existing farms:
- BANANA-BNB LP — 35x 👉 40x
- BANANA-BUSD LP — 17x 👉 20x
- GFCE-BNB LP — 1x
- BIFI-BNB LP — 1x
New farms created:
- NAUT-BNB — 1x
- CAKE-BNB — 1x
- BAKE-BNB — 1x
We truly hope you see the value in this, and ultimately this will be better for all BANANA holders and the longevity of our DEX ❤️
