Our last blog post introduced you to two new concepts of ApeDAO: Ape Split — the introduction of Lil’ Apes NFTs with reduced voting power (guaranteeing the OG voting power won’t be saturated) and Liquid Apes — the release of the APEin token to allow an easy conversion of our NFTs to liquid assets.
In this article, we will bring you closer to the Liquid Apes and highlight how you will benefit from the upcoming APEin token!
Before we do so, let’s get to the bottom of the question: why is the illiquidity of NFTs a general problem?
Investing in NFTs has become increasingly popular, but one of the biggest downsides is their illiquidity. This means that it’s not easy to convert them to cash when you need it. The ability to quickly swap NFTs into tokens solves this problem and makes NFTs more attractive to investors.
The traditional method of selling NFTs involves listing them on a marketplace and waiting for a buyer. This process can take a while and if you need cash quickly, this can be problematic.
Additionally, if your NFT is not the most popular one of the collection, you might have to lower the asking price, which can be extremely frustrating and certainly not the life we imagine for our ApeDAO members
For this very reason, the APEin token will be introduced, turning all Ape NFTs into liquid assets. In case you want to sell an Ape (to be honest, who would do so?!), you don’t have to search for a buyer anymore. Converting an Ape into APEin tokens and selling them can easily be done on the upcoming decentralized exchange of our partner ShimmerSea. You can also “downsize” your voting power, e.g. by selling one OG Ape, buying three Lil’ Apes and selling the rest of your APEin tokens.
The ability to swap Apes quickly into APEin tokens has several benefits. First, it makes the NFTs more liquid, meaning that they are easier to buy and sell. Second, it allows you to quickly convert your Apes into tokens when you need cash. This is particularly important in the crypto space, where prices can be volatile and investors need to be able to quickly move their assets to avoid losses.
Specifics & tokenomics
The exchange rate of an OG Ape against APEin token is as follows:
- 1 OG Ape = 500 APEin
- The APEin token will have a maximum supply of 537,000 tokens.
- APEin tokens can only be minted by selling Ape NFTs!
The OG Apes vault will be started by a few of the OG Ape owners. They will sell some of their OG Apes to the vault, starting a Liquidity Pool on ShimmerSea with APEin tokens they receive paired with SMR tokens.
Apes can be exchanged (sold) for APEin tokens. Each time an Ape is exchanged for APEin tokens, the Ape goes into the Collection Vault where anyone can buy it and the user in return receives APEin tokens.
Sell fee: There is a 10% sell fee each time you convert an Ape into APEin tokens. The fee goes into the ApeDAO Treasury.
There are two types of buying processes: Random buy and Target buy.
Random Buy: This option gets you a random Ape from the Collection Vault and comes along with no fee.
Target Buy: If you want specific Ape from the Collection Vault, choose this option. There is a 5% fee that goes into the ApeDAO Treasury — Soon Wukong III gotta eat! 🍌
As the DeFi market on Shimmer and IOTA continues to grow, we can expect to see more innovation in this area and look forward to your feedback and suggestions. Reach out to us on Discord anytime, we and Soon Wukong III look forward to every new member!
Our next blog post covers all you need to know about our new NFT collection — the Lil’Apes!