ApeSwap Introduces Treasury Bills 💰

How Treasury Bills Work

Inspired by a combination of TradFi, DeFi, and NFT products, ApeSwap’s Treasury Bills allow users to purchase tokens at a discount in exchange for their liquidity provider (LP) tokens. Each Treasury Bill is a unique NFT that represents the purchased tokens, which vest over a certain amount of time.

Jungle Owned Liquidity

Treasury Bills ultimately create protocol-owned liquidity for ApeSwap. Users who purchase a BANANA Bill with their LP tokens are selling those LP tokens to ApeSwap, and we retain control of those LP tokens (instead of renting liquidity through incentivized yield farming). We can then use those tokens to generate sustainable returns for the protocol as a whole by collecting liquidity provider trading fees, which allows us to scale our product offerings and create even more innovations for the community.

Increasing Emissions Efficiency

Back in January, GNANA voters passed this governance proposal, which included an agreement to allocate one of the eleven BANANA minted per block to help create Jungle-owned liquidity. Once the Bills product launches, ApeSwap will manually transfer 403,200 BANANA to the Treasury Bills contract every two weeks.

Generating Yield with Treasury Bills

Each Treasury Bill will be minted as an NFT, which instantly simplifies and creates a secondary market for this new product. Because we are minting a unique NFT for each Treasury Bill, we can easily evolve our Bills to make them as simple or complex as needed to meet the needs of our users and partners.

The NFT Art

We use the canvas metaphor for a reason — our bills will also be a form of generative NFT art, but with a historical twist. Inspired by the history of cryptocurrency and the legends that paved the way, each component of the bond will correlate to a piece of artwork you are generating with your unique inputs.

  • The Legend
  • The Location
  • The Moment
  • The Innovation
  • The Easter Egg
  • Committed token
  • Type of Bill
  • Terms Section
  • Vesting Period
  • Maturation Date

Purchasing a Treasury Bill

Pricing

Treasury Bills are dynamically priced directly proportional to demand, and inversely proportional to time. Accordingly, Treasury Bill pricing is determined by three primary factors:

  1. The price of the input LP tokens that are used to purchase the Bill
  2. The price of the output token (i.e., BANANA or a partner project token)
  3. The time since the last bill was purchased
  4. Demand for a specific bond

Pre-Launch Beta

Our first Treasury Bills will be available for purchase on April 12th, when we’ll release two types of BANANA Bills as a de-facto beta period to fine tune the product and gather data and user feedback. Please note this product is SAFU, has been audited by Paladin and rigorously tested.

Official Launch

And then in mid-April we’ll launch our fifth BANANA Bill LP pair with the full set of NFT generative art available through our innovative Treasury Bills product.

What’s Next

After these initial offerings we anticipate opening up the Treasury Bills product to more APE-LP pairs and partner projects, allowing us to continually offer new Bills for users to take advantage of new yield generating opportunities.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store