ApeX at One: Tekla Explores the Evolution of Decentralized Exchanges

@ishanpandey

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Welcome to a special edition of our HackerNoon series, where today's narrative transcends ordinary discussions. In the spotlight is Tekla, a visionary who has played a pivotal role in catapulting ApeX into the upper echelons of the web3 world. As ApeX Pro celebrates its first anniversary, we're diving deep with Tekla to uncover the intricate layers of innovation, challenges, and triumphs that have marked this remarkable journey.

From Concept to Reality: Tekla Recounts ApeX's Groundbreaking Year

Ishan Pandey: Hi Tekla, it's great to have you with us today. As ApeX celebrates its one-year anniversary, could you reflect on your journey with the company and what inspired you to join this innovative web3 enterprise?

Tekla: Thank you for having me! It's been an exhilarating year at ApeX. It's been an exhilarating year at ApeX. I joined the company last year and have witnessed a year of dedication, growth, and brilliance from a team committed to delivering on the promise we made to our users – creating the prime decentralized exchange in ApeX Pro. We began in November and have since built upon that foundation, developing our product on the principles of web3. Our focus has been on increasing accessibility and reach, diversifying trading varieties and terminals, and providing users with multiple revenue-sharing options.

Today, ApeX stands as one of the leading decentralized derivatives exchanges in the market by trading volume. It's non-custodial and permissionless. ApeX now offers both USDC and USDT cross-margined perpetual contracts with over 25 trading pairs. Users can connect from more than 10 wallets or through social login and then deposit from seven different chains. They can earn through staking or through the Smart Liquidity Pool. Referring friends allows them to generate additional passive income, and they can also participate in a variety of campaigns and competitions we run on our platform. Since September, users have been able to monitor their positions and trade BTC-USDC and ETH-USDC on ApeX Bot – the very first decentralized and self-custodial derivatives trading bot on Telegram.

The exchange is fast and efficient, charging zero gas fees. Over the year, even during some of the most dormant periods, our user base has been growing, a testament to the quality of the product we've built. It truly has been a great year packed with progress, and I couldn't be prouder of the team.

Ishan Pandey: ApeX Pro's approach to decentralized trading is quite unique, especially with its order book model and StarkEx integration. How do these technologies work together to enhance the user experience?

Tekla: During the R&D stage, it became abundantly clear to us that one of the main obstacles to the adoption of DEXes was ease of use. Crypto natives, accustomed to the order book model and interface of centralized exchanges, consistently found existing DEXes lacking in usability. In response, we made a deliberate decision to build ApeX Pro based on the order-book model.

StarkEx, a layer 2 scalability engine developed by StarkWare, significantly enhances performance capabilities by utilizing cryptographic proofs and Validium to securely validate transaction batches. With StarkEx, we can process 50 trades and 1,000 order placements and cancellations per second. Additionally, StarkEx, along with the four DACs we collaborate with, enables the forced withdrawal of assets in the event of a compromise.

In tandem, the order book model and StarkEx transform ApeX into one of the most accessible, user-friendly, secure, and efficient decentralized exchanges on the market.

Ishan Pandey: The mission of ApeX Protocol is ambitious, focusing on fairness and transparency in wealth management. As you mark your first anniversary, how do you ensure these principles are upheld in the day-to-day operations of ApeX Pro?

Tekla: Built on Layer 2, ApeX enjoys a systemic advantage in terms of privacy protection, trading performance, and fund security. The protocol is non-custodial, ensuring users maintain complete ownership of their funds by retaining their keys at all times. When you engage in trading on ApeX, your wallet interacts directly with ApeX's smart contracts, which execute the orders you initiate.

ApeX provides additional security measures such as escape hatches and forced trade and withdrawal capabilities. These features empower users to maintain constant access to their funds.

Ishan Pandey: With the introduction of your new tokenomics model, could you explain its design and how it aligns with ApeX Pro's long-term vision and sustainability?

Tekla: We are currently in the process of implementing changes to our tokenomics model. Our strategy involves a reduction in the supply of $APEX, with an initial target of burning approximately 10-15% of the current total.

Additionally, we are planning to introduce a buyback and burn mechanism, allowing token holders to directly swap $APEX on our platform. Lastly, we aim to launch LP revenue-sharing programs by establishing APEX-ETH liquidity pools on top-tier DEXs.

These changes have been designed to enhance the efficiency of our model, provide increased flexibility for users, and elevate the overall value and benefits for our token holders.

Ishan Pandey: Reflecting on the past year, how has the integration of Trade-to-Earn and the Staking Program influenced user engagement and the growth of the ApeX community?

Tekla: These two programs, alongside SLP (Smart Liquidity Pool), have indeed played a major role in user growth and engagement. At their core, all three present opportunities for users to share in the protocol revenues.

Within the Trade-to-Earn scope, which concluded on November 21, 2023, users earned our reward token, $BANA, simply by trading on ApeX. $BANA could then be swapped to USDC or held until the end of T2E to be exchanged for $APEX. By the conclusion of T2E, our users had earned nearly 20 billion $BANA.

For holders of our governance token, Staking has proven to be an excellent revenue-sharing opportunity as well. During our Anniversary week, as part of our celebrations, we tripled one of the components of the Staking rewards equation—the Time Factor—to boost users' earnings. What sets our Staking program apart is its consideration of user trading activity; the more involved you are in the ecosystem, the higher the rewards.

Lastly, SLP was a product we introduced in the summer. SLP is a liquidity pool based on advanced market-making strategies that grant users of any experience access to generate passive income via market-making strategies by depositing a minimum of 100 USDC. By depositing USDC, users earn yields in USDC while increasing liquidity on the exchange.

A notable success indicator for this enterprise is that every time we've increased the pool cap on SLP, it has been fully subscribed within a few hours. These three revenue-sharing opportunities have been pivotal in engaging users with ApeX and retaining them long-term. We are excited to continue building and introducing more opportunities of this nature.

Ishan Pandey: As ApeX Pro moves into its second year, what are some of the future developments or initiatives we can expect, particularly in terms of expanding your services and user base?

Tekla: One of our initial steps forward involves revamping our Tokenomics model. Additionally, we will maintain our focus on diversifying USDT trading pairs and expanding accessibility by integrating more wallets and chains. Upgrades to ApeX Bot on Telegram are also in the pipeline, enhancing its utility as a fully-fledged trading terminal. However, our primary focus will be on transforming ApeX into a social trading DEX.

We will start by introducing copy trading tools and social features in Q1 2024 and, by Q2, add DID generation capabilities and an SBT (Soul Bound Token) minting event. Social trading has been a part of our mission since we launched last year, so it is incredibly exciting to start introducing this facet of our exchange to our growing community.

Our SBTs, or ApeSouls as we are calling them, will be linked to a trader’s trading profile (DID — Digital Identity), which will include the data on trading volume, number of trades, open interest, ranking, profits, positions, and more. Additionally, the SBTs will be completely in users' control. One can mint and burn their ApeSoul at one's discretion and through smart contracts at any time. ApeSouls, without exposing users' private data and real identity, will empower users to forge relationships and make informed decisions about master traders and trading signal sources based on authentic trading history.

In essence, ApeX will continue to build a user growth system centered around trading history, offering attractive protocol incentives beyond trading to promote trading and sharing behavior, fostering the organic growth of a trader ecosystem.

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