Recently, the ApeSwap Core Team was approached by another entity about a potentially innovative business agreement. The opportunity would serve two purposes: (i) Buy back $250,000 worth of BANANA; and (ii) acquire an existing DeFi protocol & transition their token holders into the ApeSwap protocol. This governance proposal intends to outline the terms of the agreement and seek approval from our community to execute on this opportunity.

Unfortunately, the counterparty cannot be specified by name until the governance proposal is decided upon, as the suggestion of the following steps may influence decision making by the 3rd-party protocol’s community. For the purposes of this document, the counterparty will be referred to as “The Protocol”.

In lieu of naming The Protocol, we can highlight several key components of their platform:

• Cross-chain DeFi Protocol
• Native token listed on several major exchanges
• 5,500 token holders
• 9,000+ Twitter Followers, 3,000+ Telegram Members
• Current market cap of approximately $2.5M

Please read on for the proposed arrangement with The Protocol.

The Arrangement

The Protocol is proposing to use $250,000 in assets taken from their protocol-owned liquidity sources to buy back $250,000 worth of BANANA. This money would come directly out of The Protocol, and not out of the ApeSwap treasury.

Additionally ApeSwap would utilize $50,000 in BANANA, taken from reflect fees accumulated in GNANA staking pools, to add to the BANANA buy-back.

The cumulative $300,000 in BANANA tokens would then be distributed to The Protocol’s token holders to “convert them” to BANANA holders. This would be done through an airdrop system where The Protocol token holders would be given through airdrops over a 30 day vesting period.

Once complete, The Protocol would change all social media accounts and domain names to redirect to ApeSwap or clearly link to information about the acquisition. Public information about the arrangement would be published to the ApeSwap Medium and social media channels.

What is not in scope:

• The ApeSwap Team will not maintain the protocol in any capacity. Instead, it will sunset in favor of the ApeSwap protocol.
• None of the rewards provided in this agreement will go to the team of The Protocol. The end users we're aiming to acquire will receive all rewards.
• ApeSwap retains the option of utilizing the existing protocol’s codebases for future projects.

Voting Options

Option 1: Approve Proposal

A vote to approve the proposal authorizes the ApeSwap Core Team to move forward with the proposal, and begin the transition of The Protocol’s user base from their platform to the ApeSwap protocol.

Option 2: Reject Proposal

A vote to reject the proposal would direct the ApeSwap Core Team to not move forward in transitioning The Protocol’s users into the ApeSwap protocol. The $50,000 BANANA buy-back using reflect fees from GNANA staking pools would not commence, no BANANA tokens would be distributed to members of The Protocol, and the ApeSwap Core Team would not acquire The Protocol’s codebases.