ApeSwap’s Treasury Bills: Marriage of NFT and DeFi

2022.7.6  •  4 min read
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The DeFi market is going through a painful deleveraging process, but the crisis also means opportunity for well-prepared builders. ApeSwap, the DeFi Hub on BNB Chain, has underlined its commitment to bringing innovation to the industry continuously.

For a close insight on the project you can check our Spotlight Review on ApeSwap back in August 2021, when it was only 6 months old and was one of the MVBII winners that season.

In less than a year, it has grown rapidly to a DeFi platform offering a full suite of financial tools with more than $80 million TVL, nearly $20 billion total trade volume, and over 200 partners in its ecosystem.

Treasury Bills

The speed of ApeSwap’s growth comes from constant innovation. Earlier this year, ApeSwap created an innovative, well-designed product: ApeSwap Treasury Bills, which are inspired by a combination of TradFi, DeFi, and NFT products.

After launching the first of its kind - BANANA Bills in April with great success, ApeSwap followed up with Jungle Bills in June. Each Treasury Bill is a unique NFT that represents the vesting tokens and allows users to access tokens at a discount in exchange for their liquidity provider (LP) tokens.

The Success of BANANA Bills

The goal of Treasury Bills is to ensure the long-term health of ApeSwap protocol while offering new ways to generate sustainable liquidity. When the Treasury Bills launched on BNB Chain on April 12, 2022, the first batch sold out almost immediately after they became available. The ApeSwap community ensured the success of the limited-edition NFTs, with tremendous excitement for the next round.

The first sub-product of Treasury Bills is called BANANA Bills. BANANA is the primary native utility token of the ApeSwap ecosystem. Users can access BANANA tokens at a discount relative to the current market price, and the protocol receives liquidity that it controls and can use to generate sustainable revenue through trading fees.Theoretically speaking, leveraging one BANANA per block provides an approximate 90% Return on Emissions.

When a user purchases a Treasury Bill, they receive an NFT designed by the talented iliana.ink,  that represents the discounted tokens as they vest over time. The holder of the NFT is the only one who can claim tokens as they vest. Each Treasury Bill NFT consists of a combination of five procedurally-generated characteristics: Certification, Legend, Location, Moment and Trend. For example, “the Moment” will record key developments which helped to shape where the cryptocurrency atmosphere is today, including the Bitcoin hard fork, the moment when Tesla began accepting Bitcoin for purchases, and Bitcoin becoming legal tender in El Salvador.

Jungle Bills

After the successful launch of BANANA Bills, ApeSwap decided to extend the ability to create sustainable liquidity out to its partner projects. That’s how Jungle Bills came around.

Jungle Bills work like BANANA Bills in terms of the core mechanism, but instead of accessing BANANA tokens, users can access tokens from select partner projects within the ApeSwap ecosystem using liquidity provider (LP) tokens. For example, NFTY-BNB LP tokens are used to purchase NFTY-BNB Treasury Bills, which yield NFTY tokens.

Five of the Jungle's most dedicated partners join the launch of the first set of Jungle Bills in June 2022, they are: CEEK, NFTY Labs, Telos Foundation, Mogul, and HotCross. The feedback was overwhelmingly positive.

"Many companies in Web3 want to innovate, few actually do. ApeSwap is one of these few. They are not just a platform but a partner that truly thinks outside the box to offer users innovative solutions. Working with them on their Jungle Bills initiative was a seamless experience and we’re excited to be on this journey with them."

Sukesh Tedla, the Exchanges and Liquidity Lead at Telos Foundation.

“The Jungle bills program with ApeSwap has been innovative, smooth, and beneficial to our overall liquidity initiatives. We have seen significant growth from the Jungle bills program and would gladly engage again to boost our liquidity. We're always happy to work with the ever-professional ApeSwap team and their unique products and services.”

Tytaninc, Co-Founder at NFTYLabs.

When NFT met DeFi and TradeFi, that’s where the magic happened. Like BANANA Bills NFTs, Jungle Bill NFTs also featuring key legends, locations, and moments in cryptocurrency, along with the applicable partner tokens. The utility-driven, yield-bearing NFT product combines the art value with the financial instrument, and gives communities a chance to support their favorite projects through protocol-owned liquidity. For example, as the best-selling Bills among the five, $150k CEEK Bills have been sold out since launch in June.

"As long standing ApeSwap partners, we've been impressed by their consistent ability to deliver on new ideas and innovative products. Most recently, ApeSwap has worked hard to create new sustainable liquidity initiatives through their newest product offering, Jungle Bills. We couldn't be more proud to be among the first to start accumulating our own Protocol-Owned Liquidity and are excited to be working so closely with the ApeSwap team to make this a reality."

Mary Spio, CEEK CEO

What’s Next?

The consecutive successes of BANANA Bills and Jungle Bills strongly proved that giving ownership of vesting tokens at a discount provided a sustainable positive growth opportunity, and this model works well for partners as well. As the Jungle Bills have provided growth for the first five projects, ApeSwap is keen to roll out the Bills to even more projects, creating continuous growth across the entire space and helping everyone grow value and build wealth over time.

For more information about Treasury Bills you can utilize ApeSwap’s comprehensive Guide and show your support for your favorite projects.

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