Institutional DeFi protocol with decentralized
NEW YORK, November 22, 2020 (GLOBE NEWSWIRE) – The blockchain space has exploded massively in recent years. This is in large part due to the growing popularity of Decentralized Finance (DeFi) among cryptocurrency enthusiasts in 2019. DeFi has become so popular because it presented real-world business scenarios, pushing to address the key issues plaguing the market. financial sector.
DeFi is a catchy nickname that represents a paradigm shift in our perception of what money entails. Similar to banks and other centralized financial institutions, DeFi offers the same financial products and services, but in a decentralized environment, without trust and without borders.
Bitcoin was the first peer-to-peer digital currency and the first successful implementation of blockchain technology. However, the blockchain has overtaken Bitcoin to give birth to decentralized finance. This recent development represents a turning point for financial applications that gives users the freedom to do more with their crypto assets.
The decentralized financial space is a rapidly growing ecosystem of open protocols and applications serving thousands of everyday users who use financial products and services. DeFi has expanded its reach to cover various services such as lending and borrowing, spot trading, and margin trading – and it continues to grow rapidly.
According to data from DeFi Pulse, the DeFi space is now worth around $ 12.4 billion at the time of writing. This is an increase from an estimate of just $ 80 million at the start of 2020.
What is Apex DAO?
Apex DAO is an institutional DeFi protocol based on open distributed protocols leveraging blockchain technology and smart contracts. The protocol maintains true decentralization thanks to a transparent and impartial governance model.
Apex DAO offers an ecosystem of financial solutions in the form of Yield Farming, Business Loans, Synthetic Assets, and Special Purpose Acquisition Companies (SPACs). These solutions are presented as simple DeFi products that everyday users can easily access over the Apex DAO protocol.
The existing financial market is based on a board structure and centralized management. This presents some issues including personal errors, investor manipulation and a lack of transparency. To this end, a viable solution that tackles and eliminates these problems is more necessary than ever.
Apex DAO set out to address these key issues that plague traditional financial solutions by turning governance over to an autonomous system crowdsourcing process.
How Apex DAO’s token ecosystem works
Apex DAO users can increase their earning potential by exploiting several profit opportunities such as increasing the token price, distributing liquidity rewards and earning dividends from the top layer.
The Apex DAO ecosystem operates in a three-layered framework with an additional side layer for digital asset management. Here is a brief overview of these layers.
Challenge Lying down
This is the first and lowest layer of the Apex DAO ecosystem. The DeFi layer works in conjunction with the side layer to provide opportunities for everyday users to make profits through yield farming and asset management. Through advanced asset management services, Apex DAO will maintain investment portfolios (which consist primarily of derivative and synthetic assets) on behalf of institutional investors. The DeFi layer is operated in a decentralized environment through the governance voting system.
Using the first layer, individual investors can deposit their tokens into the Apex Yield Farm Pool and earn ongoing passive income. In addition, they will also receive periodic dividends on income generated by asset management and PSPC.
Crypto funds and business loan
The second layer of the Apex DAO ecosystem includes a DeFi loan protocol for individuals and businesses. In the second layer, users will deposit their crypto assets through the asset manager. They can then use the deposited tokens as collateral to invest in the crypto fund. Income at the end of the investment period is settled in two ways, depending on the value of the crypto collateral.
First, if the return on the collateral is less than 6%, the crypto fund will be terminated and the collateral returned to the user.
On the other hand, if the return on the collateral is 6% or more, the tokens used as collateral will be burned continuously to reduce the supply (thus increasing the price) and the profits will be paid to the user. By adopting a deflationary tokenomic, fund investors and token holders can enjoy continued investment returns. It is important to know that users have the power to change the percentage of return by voting through the governance of the protocol.
Pure specialPose Acquisition Company, SPAC
As Layer Two Crypto Fund and Corporate Loan instruments increase in valuation, more PSPCs will be created through insurance companies and private equity funds.
The PSPC is a unique financing vehicle for the acquisition of start-up companies (i.e. before IPOs and mergers and acquisitions) by raising funds through a public offering and generating income in a short time through the sales process.
In the third layer, institutional and private investors will invest in private equity funds. The funds raised will be deposited into an interest-bearing account and will not be disbursed until the acquisition of the company is finalized. In the event that the fund’s acquisition and liquidation fails, investors will get their initial PSPC contribution back.
The PSPC layer in turn provides liquidity to the lower layer (especially corporate loans) through corporate investment deposits. It should be noted that layers two and three are designed to work under the institutional custody and asset management service. This ensures the safety of the funds and allows them to maintain control of their crypto holdings at all times.
CPMM market maker
Uniswap was the first decentralized exchange protocol to implement Automated Market Makers (AMMs), providing a better way to trade cryptocurrencies in a decentralized manner through liquidity pools.
Uniswap is a popular liquidity protocol that works under the CPMM automated market making model. This will be the first DEX platform where Apex DAO will be listed.
The CPMM model price formula is based on the function x * y = k, where x and y represent the supply of two tokens X and Y respectively, and k is the product that must be held constant.
Instead of the centralized buy / sell order books used on crypto exchanges, token exchanges are done through the liquidity pool. In this process, a token is deposited into the liquidity pool and the targeted token is withdrawn from the pool based on its quantity and value.
The CPMM model establishes a price range for X and Y based on the available liquidity of each token. As the supply of token X increases, the supply of token Y will automatically adjust (in this case, decrease) – and vice versa – to keep the product constant. k.
All pools offer a fixed amount of rewards, regardless of current demand. As such, the cash rewards distributed to farmers in a particular pool are inversely proportional to the supply of the token mined in that pool. However, the token received as a reward is directly proportional to the offer of the token. Therefore, as the total locked-in value increases, the number of rewards that can be received from the pool may be decreased.
The bottom line is this: As the total locked-in value (i.e. the total supply) of the reward token increases, the price of the token increases while the amount of rewards farmers can get from the reward token increases. pool decreases.
The tokens distributed in Apex DAO have the same authority as the most DeFi governance proportional to their quantity. Apex DAO does not directly benefit from the token sale as the value will increase through engraving and innovative tokenomics are determined by the voting rights of the token holders. The whole governance process is also transparent.
Overall, the focus of Apex DAO users and the institution remains the same for asset growth, as the amount of funds deposited as collateral interferes with the size of top layer deposits. This results in a better circulation of income leading to the rapid growth of the ecosystem.
By leveraging blockchain and smart contracts, Apex DAO will provide appropriate programmability, interoperability, and transparency across its DeFi suite of solutions, eliminating the need for a trusted third party through decentralized community governance. This will help everyday users unlock the full value (and earning potential) of their crypto assets and access financial products and services in a secure, decentralized and trustless environment.
Company: ApexDAO Ltd.
Telephone: +1 (518) 490-9990
E-mail: [email protected]