[ApolloX] [FINAL] [STIP - Round 1]

Archive Short Term Incentives Program (STIP) Round 1
12

Thank you for your question. We’d like to elaborate on our reasons given above. Two main things:

  1. Our growth increases derivatives activity on Arbitrum

ApolloX partnered PancakeSwap to launch our version 2 on-chain perp trading on Arbitrum. The grant, if accepted, would be used as trading and LP incentives for v2. On BNB Chain, we come up top for derivatives TVL, while PancakeSwap tops DeFi TVL. Both platforms are also arguably the most widely-known and used in the BSC derivatives and defi sectors. This is an opportunity to introduce BNB Chain users to Arbitrum, tapping into both APX’s and PCS’s user bases. However, users require a push factor to move to another chain or even try out perpetual trading. The incentives would help them take the first step.

We believe our current performance on BNB Chain would be surpassed with Arbitrum’s mature derivatives ecosystem. Our growth on Arbitrum ultimately contributes to overall transaction activity and TVL on Arbitrum itself. As ApolloX grows, other protocols on Arbitrum would also build upon us to introduce their own products, further expanding Arbitrum activity.

  1. Our presence supports derivatives innovation

ApolloX offers competitive product features. For example, no other prominent perp DEX offers 750x leverage for crypto perps. We have seen great trading interest for such high-leverage products. In fact, since our launch on Arbitrum, the 750x leverage contracts dominate trading activity on our platform. We also offer a 5bps trading fee, the market-lowest, on Arbitrum.

We believe our innovations in product offerings will spur other projects to innovate. They will attempt to offer the best value to Arbitrum traders and users in order to stay relevant. This is good for the Arbitrum derivatives ecosystem as a whole. However, ApolloX first has to establish itself and put down roots on Arbitrum. The grant would contribute to ApolloX’s growth, increasing trading and LP activity on the platform. This would help us to sustain user activity and interest, and help us introduce more innovations in turn.