SECTION 1: APPLICANT INFORMATION
Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.
Applicant Name:
ApolloX
Project Name:
ApolloX
Project Description:
ApolloX (APX) is one of the top decentralized exchanges (DEX) for crypto derivatives. Offering both order-book and on-chain perpetuals, ApolloX empowers traders and stakers with unparalleled opportunities.
Team Members and Qualifications:
Captain | Katherine | Venus
More about the team can be found on the Team page.
Project Links:
Linktr.ee: https://linktr.ee/ApolloXchange
Contact Information:
TG: @kathli_09
Email: Katherine.L@apollox.com
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
SECTION 2: GRANT INFORMATION
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size:
640,000 ARB = 40,000 ARB per week for 16 weeks.
Grant Matching:
The incentives below are already live and will be carried on in parallel with the ARB grant (if approved).
- We have an ALP Syrup Pool (Stake ALP, Earn CAKE) on PancakeSwap to reward ALP stakers. The emissions in total are 500 CAKE and 25000 APX (APX converted to CAKE for distribution) per day. (~25% of the grants value)
-
We currently inject 25% of V2 trading fees on Arbitrum to reward top Arbitrum traders
Grant Breakdown:
- 4/5 of the grant (512,000 ARB) will be used as trading incentives for ApolloX V2 (oracle-based on-chain perp trading)
- 1/5 of the grant (128,000 ARB) will be used as liquidity incentives for ALP, the liquidity provider of V2 trading
Each week, 32,000 ARB and 8,000 ARB will be distributed as trading incentives and liquidity incentives respectively.
Funding Address:
0x60EdE4402a34762D608AD9bA7bD3797f5bFE544c
Funding Address Characteristics:
3/6 Multisig
Contract Addresses:
- Trading incentives: 0xbbe8f9e6de5245a12c2b9dc7b84c8334b4c8be1f
- Liquidity incentives: Will be provided in the bi-weekly updates once the respective Syrup Pool contracts are set up every two weeks
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.
Objectives:
- Incentivize V2 perpetual trading activity on Arbitrum, hence increasing volume, transactions, active users, and sequencer fees for Arbitrum
- Incentivize liquidity providers on Arbitrum to mint and stake ALP (platform LP token), hence increasing TVL for Arbitrum, while facilitating more volume in point 1
Key Performance Indicators (KPIs):
Target metrics for ApolloX V2 by 31 January 2024:
- Daily trading volume: $50 million
- Daily fees: $20,000
- Daily traders: 200
- ALP TVL: $30 million
These metrics will be tracked on this Dune dashboard.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
Increase derivatives activity on Arbitrum
This grant will allow us to bolster trading volume and TVL for ApolloX V2, and naturally for Arbitrum as well. We have already been providing trading and liquidity incentives (mentioned above in the Grant Matching section) since we deployed on Arbitrum, but having this grant would allow us to greatly increase the size of our incentive program.
Sizeable liquidity and derivatives activity will also allow other protocols on Arbitrum to build upon us to introduce composable innovative products. Sustainable user activity will help us introduce more derivatives offerings.
Support derivatives innovation
ApolloX V2 introduces competitive product features to the Arbitrum ecosystem:
- Up to 750x leverage for crypto perps under Degen Mode - the market’s highest
- Dynamic fee structure for Degen Mode (as low as 3bps)
- 5bps trading fee for classic perps - the market’s lowest
Having this grant would support our unique offerings within the Arbitrum ecosystem, increasing the competitiveness of the space and encouraging greater innovation among derivatives protocols.
Justification for the size of the grant:
While we have amassed >$100M 30D cumulative volume and >$4M TVL, we understand that ApolloX V2 is still new on Arbitrum. Hence, we have asked for a grant size of 640k ARB to adjust for this factor.
We are also matching the grants with CAKE + APX tokens that amount to ~25% of the grant value, as well as 25% of all trading fees earned from ApolloX V2 on Arbitrum. This tangibly demonstrates our strong commitment to the Arbitrum ecosystem.
Execution Strategy:
If the grant is approved:
- Trading incentives:
- We will upgrade the smart contract of the existing Trading Rewards program on Arbitrum to accommodate disbursement of ARB tokens. Users will be able to claim ARB tokens and trading rewards on the activity page.
- The rules of the upgraded trading rewards will be similar to the existing program, but with higher volume for each tier.
- New tier structure (Will apply to the distribution of both ARB tokens and 25% of the trading fees):
|
Tier |
Description |
Weight |
|
Diamond |
Epoch trading amount >=5M USD |
5 |
|
Gold |
Epoch trading amount >=1M USD |
3 |
|
Silver |
Epoch trading amount >= 500K USD |
1 |
- Liquidity incentives:
- There will be a new ALP Syrup Pool created every two weeks on PancakeSwap (Stake ALP, Earn ARB) to distribute ARB incentives linearly to ALP stakers. This will encourage users to mint ALP.
- This will be in addition to the current ALP Syrup Pool (Stake ALP, Earn CAKE) which will be renewed every ~45 days, where we disburse tokens equivalent to ~25% of the grant’s dollar amount.
Grant Timeline:
If the grant is approved, we will immediately start the upgrade of the Trading Rewards smart contract, and distribute the ARB incentives every week. In addition, we will spin up a new Stake ALP, Earn CAKE Syrup Pool every two weeks on PancakeSwap to disburse the ARB incentives to ALP stakers.
The grant will be used over a period of 16 weeks, or approximately 4 months, and will be distributed linearly starting the earliest in early October 2023 and ending on 31 January 2024.
Fund Streaming:
Yes
SECTION 4: PROTOCOL DETAILS
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the Protocol Native to Arbitrum?:
ApolloX V1 (orderbook perpetuals) launched on the BNB Chain at the end of 2021, subsequently expanding to Arbitrum in September 2022.
Similarly, ApolloX V2 (on-chain perpetuals) deployed on the BNB Chain in early 2023 and expanded to Arbitrum in late August 2023.
As Arbitrum has a thriving derivatives ecosystem, we are keen to put down roots and establish ourselves as a recognizable brand here.
On what other networks is the protocol deployed?:
- V1: Arbitrum, BASE, BNB Chain, Ethereum, ZkSync
- V2: Arbitrum, BNB Chain
What date did you deploy on Arbitrum?:
- ApolloX V1: 19 September 2022
- Apollox V2: 28 August 2023 (via PancakeSwap Perpetual), 14 September 2023 (V2 trading page live on ApolloX)
Protocol Performance:
ApolloX is the largest derivatives protocol on BNB Chain by TVL and in the top 10 on Arbitrum.
ApolloX V2 metrics (BNB Chain)
- Total trading volume: >$3 billion
- Total fees: >$1.95 million
- Total ALP minted: >$11M
- Total staked ALP value: >$11M
- More data can be found in the Dune dashboard.
ApolloX V2 metrics (Arbitrum):
- Total trading volume: >$108 million
- Total fees: >$16k
- Total ALP minted: $4.5M
- Total staked ALP value: $3.49M
- More data can be found in the Dune dashboard.
ApolloX has become the top perpetual DEX in % volume market share.
Protocol Roadmap:
ApolloX’s roadmap can be found on the Gitbook. In addition to what is included in the roadmap, we plan to:
- Bridge $APX token to Arbitrum
- Innovate new perp trading products for V2
- Integrate with existing products / aggregators
- Partner with other protocols to offer new products to Arbitrum user base
Audit History:
ApolloX V2 was audited by 3 different audit firms: Certik, Salus Security and PeckShield.
SECTION 5: Data and Reporting
Provide details on how your team is equipped to provide data and reporting on grant distribution.
Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?:
We have an existing dashboard to track our platform performance on Arbitrum.
We are also willing and able to create a new dashboard to cover additional information, including rewards distributions, all ARB spending transactions, etc.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?:
Yes. We currently prepare weekly infographic reports for V2 platform performance. We will create similar reports for our progress on Arbitrum and post them in the Arbitrum Forum.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program's funding stream?:
Yes
Caveat:
ApolloX’s V2 product is made in partnership with PancakeSwap. Trading on V2 is oracle-based and fully on-chain, with liquidity provided by the ALP pool (composed of stablecoins and blue-chip assets). Users can mint ALP and stake ALP in the PancakeSwap Syrup Pool to earn staking rewards. ALP minters can also earn platform fees via the gradual appreciation of ALP’s price.
