With the main focus of expanding its ecosystem, ApeSwap is gradually getting more prominent as they enable users to access all DeFi resources without leaving the platform. The plan is to be as inclusive as possible and provide equal access to financial infrastructure to people from all walks of life. After the remarkable success of its beta period, Ape Swap finally launched its Lending Network officially.
In November 2021, ApeSwap launched its Lending Network under a beta umbrella. All smart contracts have been audited and field-tested before it was found. The main goal of the beta was to provide BANANA rewards to lenders and borrowers and check whether they should allocate more BANANA emissions to the network.
Throughout the beta period, Ape Swap’s lending network gained a worldwide user base, with users from 151 different nationalities. The announcement on their social media channels led to a starting users spike, increasing their monthly user base to 5,000 users. In that period, users supplied assets with a total worth of over $35 million. Users got the opportunity to obtain liquidity for their assets and earn the native BANANA tokens.
On 7th February 2022, the day of its official launch, ApeSwap DAO voted to incentivize the liquidity on the Lending Network by reallocating one BANANA per block. The increased rewards mean increased activity that will result in more fees generated by the ApeSwap Lending Network. The payments collected will then again be reinvested in the ApeSwap ecosystem itself in the following manner:
90% of the collected fees will be utilized in buying back BANANA from the open market. 10% will be stored in the ApeSwap treasury.
Out of the BANANA bought back using 90% fees: 30% will get burned. 55% will get locked in the Lending Network’s supply side. 15% will be used as compensation.
The reward system is genius and will play an essential role in increasing ApeSwap’s overall TVL and positively impacting its ecosystem. Before investing on any platform, check out the crypto savings accounts offered by the best crypto lending and borrowing platforms in the industry.