AIP-405: [Resubmission] ApeSwap on ApeChain 

ABSTRACT

The ApeCoin DAO is built on the fundamental goal of enabling Yugaverse and ApeCoin holders with value. To date, the focus has been enabling marketplaces, a native blockchain, communications, IRL events/education, physical assets, and more.

With the launch of ApeChain fast approaching in June, a native swap/DEX product is needed in order to enable adoption and competitive functionality on ApeChain. ApeCoin DAO has the ability to establish a first-mover advantage by backing ApeSwap, a native ApeChain DEX powered by Solidity.io and Sushi Labs (Sushi Swap).

Our vision is to launch ApeSwap as a (DEX) to benefit ApeCoin holders. The ApeCoin DAO DEX will enable the decentralized exchange of tokens supported by multi-asset pools that earn liquidity providers fees from market making and swap fees. It should be noted that ApeSwap would not necessarily be the exclusive DEX of the ApeChain ecosystem.

ApeSwap will include a protocol fee for token swaps, with 50% of all protocol fees returning back to the ApeCoin DAO treasury. Immediately upon the launch and accrual of fees the DAO treasury would receive revenue distributions in accordance with the payout schedule established by Sushi Labs. In addition, ApeSwap will undergo a token generation event, and will provide an airdrop of ApeSwap DEX native tokens to ApeCoin token holders, as well as an airdrop directly to the ApeCoin treasury.

Sushi Labs, with development support from Solidity.io, will support strategic and technical efforts with the deployment, ownership, and maintenance of the DEX. In addition to this, ApeSwap will offer a token airdrop to active Sushi Swap ecosystem users to incentivize the growth and adoption of ApeChain by the broader DeFi community. xSushi (Staked sushi) holders will likely be the targets for the airdrop.

Specifications |
Solidity.iowill operate as the core service provider for the ApeSwap DEX launch. This includes conducting design, development, and deployment of a native decentralized exchange on ApeChain for ApeSwap on behalf of Sushi Labs. All data points from the DEX will be aggregated to a decentralized datastore to enable real-time charting on the platform. The $APE grant will be paid to Solidity.ioupon passing of this proposal to fund ecosystem development and maintenance for one year. Solidity.io will be the pre-selected core service provider, responsible for delivering on the product roadmap, supporting tokenomics design, go-live support, and maintenance of the product and platform for one year. With Sushi Labs being the operating entity and administrator of the franchised DEX, they would be responsible for hosting and maintenance coordination after one year if Solidity.ioand Sushi decide not to renew the initial 1-year agreement together. We expect maintenance costs after year one to fall under $100k per year for maintenance and hosting.

ApeSwap will launch a token on ApeChain to function as the core utility token for ApeSwap. $APE holders will receive an airdrop, ApeCoin DAO treasury will receive an airdrop, and ApeCoin DAO treasury will receive a portion of trading fees.

Sushi Labs will function as the legal and managing entity overseeing the DEX launch and TGE, and ApeSwap will fall under the Sushi Labs management company as part of their franchised DEX model. Sushi will provide marketing support around the DEX launch and will handle all non-technical infrastructure, including domain maintenance and ownership, and hosting and serving of the platform.

Users can swap in and out of tokens utilizing the platform’s liquidity to perform transactions. The swap will display relevant information including price impact, slippage, and deadline. In addition to swap, users will be able to add liquidity to pairs, this process will be a separate flow allowing users to customize their transaction. We plan to incentivize liquidity provision from the community and strategic partners.

At this time, final decisions have not yet been made regarding use of any existing ApeCoin DAO trademarks, or the creation of new trademarks related to ApeSwap, but the team does want to opt for an ‘Ape’ themed branding style.

BENEFIT TO APECOIN ECOSYSTEM

ApeCoin DAO needs revenue!

The implementation of ApeSwap will be a key step in creating sustainable, on-chain infrastructure that is cash-flow generative and exists as a fundamentally ApeCoin-backed asset.

By receiving a portion of the protocol fees, as well as an airdrop to the treasury and ApeCoin holders. The ApeSwap DEX represents a potential long-term revenue stream to the DAO.

With the ApeCoin community containing many Web3 users and investors, the utility of a natively owned and backed DEX will generate massive value for existing holders, and incentivize new ApeCoin holders to acquire $APE. The core of this proposal is centered around our motivation to build sustainable ApeCoin DAO treasury revenue and broader adoption of the ApeCoin ecosystem.

The goal of the ApeSwap is to create a self-sustaining, cash-flow generative addition of infrastructure to the ApeCoin ecosystem, while capturing value that a competitor on ApeChain will otherwise take.

In addition, a token drop will reward $APE holders who have long deserved some value being returned to them through the DAO.

At this time, all that can be shared is that the plan is to have airdrop/token allocations to the following parties: ApeCoin holders, ApeCoin DAO treasury, Sushi Treasury, xSushi holders, team, Rewards for liquidity provision. This is a fluid process of course and will be more solidified over time. Users will need to connect to a site/platform to claim.

OVERALL COST

Total Budget: 750,000 APE COIN

Detailed Cost Breakdown and Allocations

Platform Design & Development: $340K

• DEX UX/UI Design: $30,000
• Tokenomics & Technical Architecture: $65,000
• Smart Contract Development & Testing: $60,000
• Front-end Development & Integration: $65,000
• Back-End Development for Farming Rewards and Charting/Analytics: $45,000
• Trading Alerts Features: $25,000
• Smart Contract Audits (Internal & 3rd Party): $50,000

Marketing, Business Development, and Operations: $120K

• Business Development & Partnerships: $45,000
• Marketing & Community Engagement: $50,000
• Operations & Miscellaneous: $25,000

Legal & Compliance: $100K

• Comprehensive legal support and compliance assurance to navigate the regulatory landscape effectively.

Infrastructure & Miscellaneous Costs: $190K

• Hosting Costs: $35,000
• Blockchain Indexing/Data Storage: $25,000
• Contingency Fund: $50,000
• 1-Year Maintenance: $80,000 (Included to ensure ongoing support and updates for the platform, covering server maintenance, product updates, and bug fixes.)

While a plan to submit a follow-up AIP in collaboration with Sushiswap to continue as ApeSwap’s service provider after the conclusion of the initial 1-year term has not yet been decided, we hope revenue from the DEX will be sufficient to maintain all operations and maintenance expenses post the initial 1-year term.

PROPOSAL

Link to the full proposal: https://forum.apecoin.com/t/aip-405-resubmission-apeswap-on-apechain/22330

The AIP implementation is administered by the Ape Foundation. Implementation may be immaterially or materially altered to optimise for security, usability, to protect APE holders, and otherwise to effect the intent of the AIP. Any material deviations from an AIP, as initially approved, will be disclosed to the APE holder community.