ApeSwap Proposes New Plan to Reduce Inflation

by BSC News

June 28, 2022


Despite turbulent current market conditions, ApeSwap still chooses to continue building, with the mission of best serving the community through a new campaign that can improve the growth of the BANANA token.

ApeSwap's Inflation Control Efforts

ApeSwap announced Proposal 19, intending to reduce BANANA emissions through farms on the project for community voting.

While preparing this proposal, ApeSwap worked exceptionally closely with Gauntlet to gain insight into how the platform could best reduce BANANA emissions through farms. Accordingly, Gauntlet has conducted many tests and analyzed the operating model before concluding.

“We’ve seen incredible results working with Gauntlet, and we couldn’t be more excited to further optimize our emissions in an effort to become more sustainable and increase our return on emissions." Biz Dev Manager & NFT ApeSwap Team Leader Julian shared to BSC News.

Gauntlet's tests prove that there are some farming pairs on ApeSwap that are having specific problems. Although ApeSwap always tries to adjust the multiplier of the farm properly and eliminate the inefficient farms, it still cannot completely solve the liquidity barrier of specific farm pairs.

As a result, ApeSwap collaborated with Gauntlet to launch Governance Proposal 19, which introduces a new mechanism called the “excess” BANANA farm, which manages the protocol behind a multisig wallet. As a result, any BANANA emissions deemed unnecessary or excessive will not be put into circulation but will instead go directly to the “excess” BANANA farm. 

The amount of BANANA deposited on this farm will remain in a secure multisig wallet. It will not be circulated to the market unless another governance proposal is approved with a clear purpose for use and distribution tokens.

The coefficient applied to the "excess" BANANA farm will be determined weekly in collaboration with the Gauntlet model. Ideally, ApeSwap would send a balanced amount of BANANA inputs to retain the same revenue output.

“The goal is to ensure that we are continually driving value and never compromising our key performance indicators, including our total value locked and generated volume.” the developers mentioned in the new proposal.

Innovative Steps for Sustainable Development

While BANANA supply is only circulating about 105.8 million tokens in the market, a relatively small number, ApeSwap is still determined to pursue a reduction strategy emissions to meet the needs of users best. In the long run, it will positively impact the price of BANANA and the community's confidence in the project.

ApeSwap has chosen an ingenious solution to balance the interests of users and projects. Instead of reducing or suspending the supply of Bananas to farms immediately, creating the "excess" BANANA farm allows ApeSwap to more quickly address inflationary pressures at the risk of threatening the core services’ platform.

What is ApeSwap:

ApeSwap is one of the first AMM DEX exchanges built on the BNB Chain network. As a top DeFi platform, ApeSwap can be used for Swap, Liquidity, Yield Farming, Staking Pools and has other features like IAO (Initial Ape Offerings) and NFA (Non-Fungible Apes).

Comparable to Uniswap and SushiSwap, top AMMs in the Ethereum ecosystem, ApeSwap works similarly on the BNB Chain ecosystem. Compared to Uniswap and SushiSwap, ApeSwap has the advantage in terms of low cost. With an attractive and easy-to-use interface, ApeSwap makes you feel more excited and comfortable, which is also one of the main reasons ApeSwap is famous.

What is BNB Chain:

Previously known as Binance Smart Chain (BSC), BNB Chain is a community-driven, decentralized, and censorship-resistant blockchain-powered by Binance. It consists of BNB Beacon Chain and BNB Smart Chain, EVM compatible and facilitating a multi-chain ecosystem. Furthermore, through the concept of MetaFI, BNB Chain aims to build the infrastructure to power the world’s parallel virtual ecosystem.

Find more about BNB Chain here:

Website |  Twitter | Discord | Telegram | GitHub |

Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for BNB Chain and crypto! 

Follow us on Twitter and Instagram!  

If you need tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, Cryptonomics Explainers, and Trading Tool Kits from BSC News.

Check out the Web3Wire Linktree to keep up with all relevant Web3 and Crypto!

Looking for a job in crypto? Check out the CryptoJobsNow listings!