IAO: Initial Ape Offering

in LeoFinance3 years ago

Update from ApeSwap!

First of all, ApeSwap updated their webpage!! No, it is not blurry texts like @meesterboom mentioned in this iconic post! I didn't even mind the previous page that much, and I absolutely love this new page! I must say, when I first landed at ApeSwap about 15-20 days back, I didn't think much about it. However, as I explored various BSC LP ecosystems, I found that ApeSwap, not only is a robust ecosystem, but they also have a very active Dev team and a strong community.

image.png

Source: ApeSwap

I think this is where many of these project either shines or fails. The current state of de-fi requires a strong community. Just high return is not enough. Because, if there is no new money coming in and existing people continue to sell, TVL (Total Value Locked) which is a very important measure of these projects, bound to drop. As TVL drops, the return drops, the price of the native token drops, and people starts to leave. Therefore, we have a "run on the bank". I have seen it first hand with Comos. Once the run of the bank starts, it is very difficult to control it. The project team can try and reduce the token inflation, but without new investments it is hard to accomplish.

Liquidity Pool NEED active Dev Team AND Community

Notice, I haven't even talked about price yet. Because price will follow. After participating in many projects including our own CUB, I have a few basic understanding about what to look for in a BSC LP project:

  1. Project needs a good 'doc'. That should have all the basic info handy, with all main contracts, Roadmap, Burn Schedule and Disclosure. Ape Score very high here! But so is many other projects....

  2. Project requires an active blog location. Here I think nothing can beat Cub, due to https://leofinance.io/; because blog is what we specialize in; but that said Apeswap does have an active official blog. This is where projects like Comos lack big-time! Without an active official blog, there is no place to grow the community. Apeswap's blog is active; 3 posts with brand new partnetships and new token pair launches in last week is impressive,

  3. Project requires an active social media presence: Twitter, Telegram, Discord....ApeSwap is nearly perfect here. Excellent social media presence there.

  4. Project need a goot web page. This is actually tricky and my view on this have changed over time. I was initially in favor of serious/professional looking websites, but I have been wrong on this. Actually funny, goofy web presence is better in this space. The new design at ApeSwap took out the blurry fonts and the fresh look is awesome. Also the Ape Stat tool, is something unique, and I wish everyone has it. You don't have to go to a 3rd party tool like https://howmuchismylp.com/ every time you like to check the status of your personal balance. But I would have liked a table as well...

  5. All the above, plus Youtube, and various podcast presence ensures a strong community who will put the money in the pool and keep it there. ApeSwap certainly has it and a 53M TVL is a clear sign of that!

image.png

image.png

A Table like the above would have been even better!

Price

Yep, this is yield farming. So at some point in time we must talk price. I personally like to look at charts when I talk price and this is where I get stuck in many cases on this space. It is not easy to pull up a chart for lot of the smart contracts. However, there are tools that are provinding relatively satisfactory results:

Here is the official one: https://info.apeswap.finance/token/0x603c7f932ed1fc6575303d8fb018fdcbb0f39a95

I do not like it that much. It doesn't allow you to draw lines and mess around with stuff like Trading View does; but it will get you a visual of the price..

image.png

Remember to click "all", as I didn't do that, thanks to Chimpin Chip for showing me that. It still doesn't take you back to the launch of the project, but it is close enough.

Then, we have this one...better than the previous ofter short term:
https://goswapp-bsc.web.app/0x603c7f932ED1fc6575303D8Fb018fDCBb0f39a95

image.png

Above is a 15-min chart and quite noisy. I am not sure how and where the back-end is pulling the data from, but volume seems unreasonable, and also the chart, but regardless, it will get you through at the short term.

That brings me to the usual point of yields for ApeSwap and similar projects. When I started with Cub and the Comos, I realized very quickly that they are all very similar and follow certain patterns. They lunch, they spike; because of the high yield in the beginning; then they collapse from the massive rally. Then one of two things can happen; either the project can stablizise to a rather low volatility equilibrium like Banana, Cub or Egg tokens; or they struggle with TVL like Comos. As you can see that their daily return is very similar for a standard BUSD pool.

Common BSC LP Price Update

ProjectCUBCOMOSBANANAEGG
Current Price3.490.0960.9319.49
Token/$1000/day2.5684.9110.710.48
$Return/$1000/day8.938.159.969.35
$TVL19.5 M0.17 M53.6 M128.6 M
Project Start DateMar 09, 2021Mar 28, 2021Feb 21, 2021Feb 11, 2021
Current prices and yield at the time of writing (updated at 10:00 AM CST, 04/21/2021)

IAO (Initial Ape Offering)

So, if everything is broadly identical for all these project, both the backend and the front end (to a large extent) what would be different? Matured project like to offer something new that others do not offer (at least in the beginning). For example goodse finance offers layered farming. ApeSwap is offerting IAO. Which is nothing but a new token launch inside the ApeSwap pool.

An Initial Ape Offering (IAO) is a fundraising vehicle utilized to launch new tokens and bring liquidity to those tokens

The way it works is fairly simple. One must follow the steps:

  1. Purchase Banana and BNB to generate Banana-BNB LP tokens. Many of the existing farmers may already have it.
  2. IAO will have a published time window (typically 1 hours). During this time window one can exchange the LP Token for the new IAO token
  3. After the sale, any unspent LP token will be return, and one can claim the IAO token
  4. The new tokens then can be sold or kept as per token holder's wishes

image.png

Source

To me this is simple enough. I will be participating into the next IAO which is Bitfresh. I am not going to talk about Bitfresh on this post, because that is not the main topic of the post. I plan on writing a post regarding that in future when I have more information. Currently that project is just trying to raise capital. I like the token distribution plan, and I am keen to participate in my first IAO. A word of caution, that this is a completely new token, and no one knows about the deamnd and therefore the price of this post-launch. But for people of Hive blockchain that shouldn't bother us, as we started our own platform under a lot of uncertainity. I had no idea what the price of hive will be when we hard-forked from the Steem Blockchain.

Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.

Charts are created in Tradingview.com, which is a free service.

Sort:  

I had a trouble farming on apeswap yesterday. Got irritated but today it worked just fine. I'm staking some banana.

BSC chain had a lot of problem yesterday. Binance was going through maintainance. Even today some of the problems linger. But no big deal.

Also I saw a farm in the morning with 40k apy and it went to 1000 Apy in 50 seconds lol.

They are common all over the place now. But they typically don't last.

Very interesting! I am on the site checking this out right now. I am not sure I want to dump a ton more money into another project. I feel like I am spreading myself pretty thin as it is. It looks like Bitfresh is the only one available right now. I will wait for your next post!

Posted Using LeoFinance Beta

It is just interesting to look at as many of these things as I can. Personally I am just trying to understand what is going on out there, that's all.

That makes sense!

It looks really good! I almost miss the blurry 8bit graphics look ;0D

Mind you, the IAO I am talking about here, is 'classic'; as we both talked about it! LOL!

It is, I am tempted by it's classic ways. A slight gamble is usually worth it!

Oh come on! This is the 'bubble'. Do you care if that pet.com stock actually sells nail clipper for puppies? Or if they even have a store? You only care if the stock rallies or not!

Man! I sound terrible! Pardon me!

But its the truth!! I used to preach the same to people who had pet cryptos that they hodl'd through thick and thin. They didn't approve of me buying any old shonk that I thought would go up and selling it after a ten or fifteen percent rise. If it goes up, then good!

Just imagine, if this thing catch on as much as ETH or Uniswap. As a simple LP goes, BSC LPs are just a better product that Uniswap..

I sometimes wish I had gotten into them in the earlier days but glad I am on the BSC chain gang now. I couldn't have stomached the fees of the Eth based ones!

I only found out about the ape stat 3 days ago and the details are great... although I put "very very little" amount in the beginning of this month but then my portfolio has grown and I'm very pleased with the amount that it's generating... and initially I had put my banana-busd in swamp but I got out of it

Excellent idea, Fia. If you slowly add and compound; any of these project will help you grow your passive income.

I really want to stake more in banana... whether bnb or busd

BUSD better, as at least one side is stable, no chance of imperpanent loss from that side.

Yes Dada, their new page is looking really nice. I have little contribution in the banana-busd pool. You rightly mentioned all the points about successful defi projects. Our CUB and banana are the good examples. And the bad example is comos. However, hope APE will go a long way.

They seem to be interested in the project. They are active, answers questions, write blogs and bringing new project/tokens into their ecosystem. All looking very positive for ApeSwap. That 53M TVL is solid!

oh man, defi is the wild wild west. trying out new projects is a huge risk for me given my capital, but based on your explanation it seems apeswap is a good deal. maybe when I reached my cub goal I can diversify further. how long do you think most of these defi projects on bsc would last?

I will try also this platform thank you so much for sharing can you please support my friend https://leofinance.io/@rosewawa/pi-network-new-cryptocurrency-wallet-is-available-now

Posted Using LeoFinance Beta

Thank you. No problem at all. Thank you for the visit :)