Ape In Expands to Avalanche With APEIN-AVAX Pool Launch

The Isles of Motu
The Isles of Motu

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We are excited to announce that Ape In has officially expanded its NFT-based virtual world to the Avalanche network.

With the expansion, we are first bringing the APEIN token to the new low-fee environment via an APEIN-WAVAX pool on Trader Joe.

Here’s what you need to know:

Avalanche Pool Launch

When Apes are both staked and un-staked in PolyientX Vaults + Farms, the protocol charges a small 3% inflationary fee on generated rewards in the form of APEIN tokens. These tokens are kept in the treasury to support the development of the Ape In economy and will also eventually plug into the larger fee mechanisms of the PolyientX platform when live.

As you know, APEIN follows an inflationary schedule and was launched with no pre-mine — team members were given no initial allocation and are buying into the economy the same as you! We believe this to be a key element of the decentralized nature of Ape Island.

Therefore, our only manner to create initial liquidity in the token and help it move forward is to directly earn APEIN and use it accordingly. This is how the community was able to seed liquidity to the APEIN-ETH pool on SushiSwap that now boasts ~$270K in total liquidity. We believe that this pool has successfully been launched and, thanks to the liquidity rewards in place, can fly on its own.

Now we would like to extend the APEIN token to the Avalanche network and allow users to find a liquid market in which to trade the APEIN-AVAX pair. In order to do this, we need to find the tokens to seed the initial liquidity.

More than 3k tokens have already been captured via the APEIN fee model on Ethereum and we plan to use these for this purpose. However, the current treasury amount would not suffice to create a deep enough pool and we fear that this, in addition to the challenging arbitrage between the Ethereum and Avalanche networks, could create a notable dissonance between the price of APEIN in the two markets.

To help ease this issue and as part of our efforts to create enough liquidity for the easy trading of the APEIN token, we have decided to launch and create a pool of similar size to the one available on SushiSwap, one with 37,500 APEIN tokens against AVAX. We have chosen Trader Joe as the venue for this new liquidity.

Now, where would the rest of APEIN tokens come from? Future fees. Every first day of the month we will burn the fees earned in Ethereum to compensate for the tokens minted in Avalanche to seed this liquidity until the difference is made up.

This way, we intend to accomplish two objectives: create deep enough markets for the APEIN token on both networks and comply with the inflationary schedule of APEIN.

Ethereum-Avalanche Bridge

Currently, the market cap of APEIN is too small for it to be eligible for whitelisting on the Ethereum-Avalanche bridge.

Therefore, we need to launch APEIN natively on Avalanche and allow it to function in that capacity until APEIN grows to the level of bridge eligibility (given the high potential of our economy, we believe this to be a fast process overall).

When APEIN is natively supported by the Avalanche Bridge, we will need to reconcile the difference between APEIN created by our token contract and APEIN.e created by the bridge. We are evaluating multiple viable paths and will cross this bridge when we come to it, no pun intended.

Avalanche-Native Experiences

We see the expansion to Avalanche as an addition to the Ape Island universe. This means you can expect dedicated experiences that are only available on Avalanche, including exclusive Ape Builder sets, new lands, special gear and perhaps even new characters added to our part of the growing metaverse.

Once we launch Season 3 of Ape Island, we will be reassessing the distribution of APEIN rewards to further balance the economy, which will open the door to incentivized Vaults and LP pairs on Avalanche.

About Ape In

Ape In is an NFT-driven experience that features a series of mini-games that are designed to offer a consumer-friendly approach to decentralized finance (DeFi). These games function to introduce crypto-centric concepts such as farming and vaulting to a broader audience while forwarding the industry’s thinking around the utility of NFTs.

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