This document explores ApolloX ($APX), a leading project in the derivatives DEX arena within the BNB Chain ecosystem, and necessitates a fundamental understanding of futures as a concept in derivatives.
Fundamental Concept of Futures in Derivatives
In the context of derivatives, "futures" refer to contracts agreed upon by parties to trade a certain commodity at a predetermined price at a specific future date. These contracts are defined as instruments for managing (hedging) potential losses that may arise from future uncertainties at the present time.
The Emergence of Decentralized Derivatives
Futures trading, as previously mentioned, serves as a means to manage future uncertainties and inherently requires intermediaries. However, this process inevitably leads to information asymmetry between investors and intermediaries. For instance, when brokerage firms are involved, information asymmetry can often result in adverse outcomes, such as investors being unable to pay the stipulated amount or the disappearance of the traded commodity itself. Historically, such issues have even precipitated financial crises.
In response to these challenges, decentralized derivatives exchanges emerged, utilizing smart contracts to minimize the roles of intermediaries and associated risks.
ApolloX Launched within the BNB Chain Ecosystem
ApolloX stands as the most substantial project among decentralized derivatives exchanges within the BNB Chain. It diverges from centralized exchanges (CEXs) by empowering users to control their funds based on private keys, thereby ensuring a trading environment that safeguards privacy.
Decentralized Derivatives Implemented by ApolloX
Futures V1 Based on the Traditional Order Book Model ApolloX's Futures V1 offers a high user experience through a traditional order book model. It adopts an off-chain trade matching combined with on-chain fund settlement and custody model, ensuring high transaction performance, rapid response times, and the safety of user funds.
Futures V2 Based on On-Chain Liquidity Model on BNB and Arbitrum The V2 features an ALP Pool liquidity and a dual oracle system combining Binance Oracle and Chainlink, providing low slippage and a secure trading environment. Users can become liquidity providers using designated assets through ALP, enabling a fully on-chain trading experience.
The above abstract has been structured to fit an academic research format, providing a comprehensive overview of the ApolloX platform and its role in the decentralized derivatives market.
$APX and $ALP: Core Tokens for User Experience on ApolloX
The Inception and Fundamental Structure of $APX
$APX token was launched with an initial circulating supply of 250,000,000 $APX, with trading support commencing on PancakeSwap at $0.0004 USDT.
llocation | |
|---|---|
Retroactive Mining Rewards | 350,000,000 APX |
List on PancakeSwap | 250,000,000 APX |
User Trading Rewards | 4,400,000,000 APX |
Marketing & Partnership | 500,000,000 APX |
Community Treasury | 4,455,000,000 APX |
Total | 10,000,000,000 APX |
Fundamentally, the $APX token matrix is designed around a reward structure with a linear increment, yet it incorporates deflationary elements through various burn programs to maintain a balanced token economy.
llocation | Before Burn | After Burn | Burnt Amount |
|---|---|---|---|
Retroactive Mining Rewards | 350,000,000 APX | 350,000,000 APX | N/A (fully released) |
List on PancakeSwap | 250,000,000 APX | 250,000,000 APX | N/A (fully released) |
User Trading Rewards | 4,400,000,000 APX | 2,100,000,000 APX | 2,300,000,000 APX |
Marketing & Partnership | 500,000,000 APX | 400,000,000 APX | 100,000,000 APX |
Community Treasury | 4,455,000,000 APX | 1,100,000,000 APX | 3,355,000,000 APX |
Total | 10,000,000,000 APX | 4,200,000,000 APX | 5,755,000,000 APX |
As reported by ApolloX, a total of 5,755,000,000 $APX were burned in April 2022, verifiable through the following address:
1% $APX Burn Tax | Removed |
APX 2.0 Burn (Apr 2022) | https://bscscan.com/tx/0xd5b6edf63882ff66e692c556b416922a68f288fb7aea7370dc101e68ce056e24 https://bscscan.com/tx/0xff8de0c4e29a6b0c9557d811148f17a19f4a783e94330635ae57ad48960c271b |
Unclaimed $APX Trading Rewards (Jan 2023) | https://bscscan.com/tx/0xdff9d173d106e19b7091fe9cade872f5a41bf28ebebb0db013bdcfeee13050fd |
Staking Rewards from 50M $APX in DAO (Sep 2023) | https://bscscan.com/tx/0x588a236c951873eb9a598399c113eb2b009534bb02d344bf0b7c0a361e1c3bd6 |
$ALP Token: A Must-Know for Long-Term Holders
$ALP is the liquidity provider token of the ApolloX platform, composed of a pool of various assets. Users can become liquidity providers by purchasing ALP using designated assets, influenced by the profit or loss of the pool and income from trading fees, funding fees, and liquidations.
Furthermore, staking $ALP can yield platform fees and $APX staking rewards, or it can be staked in PancakeSwap's Syrup Pool for maximized rewards, with the reward formula as follows:
ALP Staking Reward Formula
Technical Perspective on $APX
Until early October 2023, $APX exhibited a typical bearish trend with lowering highs and lows. However, from mid-October onwards, it demonstrated a substantial rally, exceeding 200% in conjunction with leading derivative DEX tokens such as $DYDX, $GMX, and $APEX.
The recent peak at $0.07276 USDT, the highest since May 2023, signifies a positive shift in the medium to long-term trend, having breached the long-term bearish trend line.
As of November 9, $APX has entered a correction phase post-peak formation but continues to find support within the 5EMA band on the daily/weekly charts. Should further adjustments occur, maintaining support within the $0.048 - $0.052 USDT range could anticipate a retest of the long-term bearish trend line.