AMA of ApeParkDAO （Round 2)
AUG 21, 2022
Topic: Redefining the savings incentive model, can ApeParkDAO become a Web3 financial leader?
Q1: For the first question of the AMA, let’s start by asking you to introduce ApeParkDAO to the new listeners of this AMA.
ApeParkDAO is a Web 3 Savings Token Appreciation Protocol initiated by cryptocurrency enthusiasts from around the world, and has now officially received a strategic investment from BXH Dumb Kids, a comprehensive digital asset trading platform.
In the last AMA, Ethan talked about the current state of Web 3 marketplace finance, which is the lack of a stable way for users to earn money in the Web 3 world.
ApeParkDAO has entered the market with this pain point, aiming to create a savings token value-added protocol exclusively for the Web 3 world, while providing traditional game developers with one-stop services for Web 3 transformation, including and not limited to asset on-chain, information aggregation, technical consulting, publishing and distribution, etc.
In terms of the agreement itself, ApeParkDAO creates a new token economy model that provides a credible savings token value-added agreement for the Web 3 world, in which investors’ long-term returns are not only limited to the ups and downs of the coin price, but also have rich incentives and intrinsic value backed by future game platform operations and chain game venture capital.
We would like to emphasise that ApeParkDAO is a truly decentralised project: all contracts are traceable and all project transaction data is available on-chain. We will never allow users to authorise private funds for their wallets. A security audit by a professional body is already being deployed and a professional audit report will be published once the project goes live. With ApeParkDAO, anyone can be assured of preserving and growing their savings.
Thank you Andy for your presentation, you have paved the way for our new listeners to follow up on their understanding of the project.
Q2: The world is in the midst of a transition from Web 2 to Web 3 and countless funds have poured into the Web 3 space in the first half of this year. ApeParkDAO has chosen to use the community vehicle of a DAO organisation in the midst of this change, what does the project see as the link between DAO and Web 3?
Although the current Web 3 venture capital market is hot, objectively speaking, almost 95% or more of the Web 3 investment funds on the market are currently less than a year old.
In my personal opinion, the ideal world advocated by Web 3 is indeed still at the conceptual stage, and it is difficult to tell clearly whether it is the underlying consensus, infrastructure or application ecology. The definition of Web 1 is readable, Web 2 is readable + writable, and Web 3 is not only readable + writable, but also has the new characteristic of “ownership”. Although the concept is still vague, the core of it has become clear: “decentralisation + freedom”.
One of the original intentions of the APD project was to create a global autonomous economy, which could not be a centrally planned economy, nor an oligopoly of a few. We prefer a decentralised structure and in this respect, DAO autonomy coincides with Web 3.
The four concepts of DAO, Web 3, metaverse and GameFi can somehow be said to complement each other.
For the general public, Web 3 still seems distant, but with the booming crypto market and especially the explosion of the metaverse concept since last year, Web 3 is becoming more popular.
This is largely based on the metaverse trend of GameFi as a form of presentation and the evolution of various gaming guilds around GameFi, with the dominant form of community organisation for metaverse GameFi now being DAO organisations.
APD wants to create a safe and inclusive platform for economic autonomy that unlocks the maximum potential of all people, and we believe that DAO organisations are best placed to realise this vision. In the future we will coordinate common goals, evaluate projects, establish accountability and ensure successful implementation through DAO autonomy, enabling APD to run a savings agreement and expand the GameFi ecosystem in the Web 3 space.
Sounds very cool! I’m sure we’re all looking forward to joining ApeParkDAO!
Q3: Whether in the meta-universe or Web 3, innovation in decentralised finance cannot be achieved without the invention of new mechanisms, and any new mechanism has the potential to be a key factor in igniting the next round of market fever. Could you please elaborate on the six innovative mechanisms in ApeParkDAO’s economic model?
When it comes to decentralised financial innovation, we can start by reviewing the history of the DeFi industry.
In the summer of 2020, the DeFi wave swept the world, also known as the “DeFi Summer”, in which the top decentralised exchanges, led by Uniswap and Compound, started the “liquidity mining” boom. In the summer of 2022, the market is expected to be in full swing.
In the summer of 2022, the DeFi market was depressed by the market price slump and rumours of judicial investigations and liquidation of Celsius and Three Arrows Capital respectively, and the DeFi market was also depressed by comparison: the total lock-up volume dropped significantly, shrinking by nearly 70% compared to the historical highs. It is clear that the DeFi industry has now entered a period of contraction relative to its early stages.
From a comprehensive analysis of the major DeFi platforms, I believe that the biggest cause of the current shrinking DeFi market is the over-reliance on liquidity mining.
Liquidity mining was great for the initial growth of the protocol, but once the rewards started to decline, the money flowed out of the DEX or the protocol. The only way for users to generate revenue is to sell their reward tokens, at which point the project’s native tokens are dumped, the token price drops dramatically, and the project comes to a standstill.
ApeParkDAO will respond to the traditional project dumping problem with compound incentives to break the DeFi stalemate in the face of the “mining crisis”. The six compound mechanisms are: Unity Auto-Value, Bargain Discount Purchase, Doughnut Promotion Bonus, SellFee Relief, ER Forced Riches and Bonus Lottery.
I will describe each of the six mechanisms below.
Unity is the option to maximise the revenue of ApePark DAO. Users can participate in Unity on the official website, deposit APD to get uAPD, save coins to earn interest and receive high compounding rewards.
Unity is a passive and available long-term strategy. As the number of uAPDs you have gradually increases, the cost of the tokens you hold will continue to decrease. Therefore, even if the market price of the token falls below the price of the token you bought, in the long run: the gain from the increase in the number of uAPDs > the loss from the fall in the price of the token.
Bargain is the second strategy to maximise the returns of ApeParkDAO. Simply put, with Bargain, you can purchase tokens at a discount and they will be returned in tranches over 42 vesting periods, or approximately 14 days.
Bargain is an active and short-term useable strategy. The price movement in the secondary market makes the Bargain discount very unpredictable. Buying Bargain is therefore considered to be a more active investment strategy and the Bargain discount must be continuously monitored by the investor in order to achieve a greater return compared to Unity.
(All tokens bought through Bargain will be mapped 1:1 into the DAO contract address)
ApeParkDAO encourages long-term investments rather than day trading. Therefore, a 15% transaction fee will be charged for the sale of APD.
Doughnut is a referral reward mechanism and ApeParkDAO wants more new users to participate in the program. When a user refers another user to buy Bargain, a referral reward of up to 15% will be earned. The reward vests linearly to the referrer within 14 days.
4.SellFee mechanism is also designed to ensure that APD prices are stable, Which ApePark DAO wants to reduce by suppressing sales, This is where 15% transaction fee mechanism comes from.
The Enforce Rich (ER) mechanism is designed to curb the potential for double selloff caused by buying Bargain at a high discount while receiving a high referral reward.
Suppose a user receives a referral bonus of 100 APD through a referral; the user needs to purchase an amount of Bargain equal to the referral bonus (in this case, 100 APD) to activate the ER mechanism. This reward is released in 14 days, Bargain is also released in 14 days, after 14 days you will get 200 APD.
Bonus is an additional allowance. ApeParkDAO uses the Bonus mechanism to stimulate the buying sentiment of the market and attract potential users who buy Bargain. Follow ApeParkDAO’s Bonus page to buy Bargain, and users who meet the rules will have the chance to get Bonus reward.
Among the six mechanisms, Bargain, Unity, Doughunt and Bonus are the four mechanisms that stimulate users in many ways, from discounts, compound interest, referral rewards and bonus pools, to motivate users to participate in the project.
The SellFee and ER mechanisms and the linear release system in the program discourage day trading in APD in many ways, while encouraging users to make long-term investments.
The three mechanisms, Doughnut, ER and SellFee, enhance the selloff response mechanism and incentive rewards to protect users from the risk of a crash while enjoying the generous promotional rewards, and represent a significant evolutionary step up from the traditional DeFi economic model.
In summary, APD’s six mechanisms are interlinked to break the traditional DeFi sell-off problem, avoiding the risk of crashes while encouraging users to hold for the long term and reap exponential returns through compounding. One of the Unity mechanisms can have a fixed daily return of 6%, increasing its value by nearly 60 times in 1 month. Assuming your current Unity total is $100 ADP, after 5 days of compounding your holding could reach $134.58 ADP, 10 days $181.13 ADP, 30 days $594.31 ADP, and 60 days total holding directly over $3532 ADP!
Even if everyone’s worst fears occur and the price of the APD falls during the pledge period, the additional compounding gains reaped because of the exponential increase in the amount of uAPD gained from the pledge will eventually far exceed the initial cost of the APD invested. Amazingly high compound interest – this is the biggest attraction that ApeParkDAO can have for its users.
With countless DeFi protocols rising and falling in the crypto market, some argue that decentralised finance is not sustainable on a token economy model alone and must have a base board that can be profitable.
Q4: How does ApeParkDAO help projects last in terms of on-the-ground applications?
The vast majority of cryptocurrencies on the market do not have the ability to last, so they collapse at the end of the economic bubble, and there are many such “pre-projects”. In this regard, our ApeParkDAO is actively expanding the GameFi ecosystem on top of the basic value-added protocols, and through the Web3 transformation of traditional game manufacturers, we are promoting the iteration of traditional games while enriching the world of chain gaming, which is also an important part of ApeParkDAO’s business model.
The future revenue composition of ApeParkDAO is divided into 2 main blocks.
1 Platform service business. Help traditional game manufacturers to carry out Web 3 transformation and upgrade, and also provide professional chain service operation and traffic support and other diversified services, so as to realize the value of chain game ecology in all aspects.
2 VC investment in chain game start-up projects.
We will conduct research and judgment on future chain game hotspots, and screen suitable start-up game teams for investment and provide technical support through DAO.
The revenue gained from the platform service business and VC investment will be shared with our $APD holders, and we are looking forward to working with first-tier CEX for whom ApeParkDAO can create more Web 3 service scenarios and $APD itself can get more liquidity support.
ApeParkDAO has not only attracted top experts from the fields of finance, gaming and blockchain, but has also gathered a group of renowned artists who have been deeply involved in art creation for more than 20 years, and their addition has injected strong technical and design genes into the platform. Combined with the grounded application of ApeParkDAO, we are very confident that it will become a dark horse in the Web 3 field!
Okay, thanks Andy for sharing.
Q5: And the last question, I am personally interested in APD’s IDO, including many of our followers! Can you tell us more about IDO?
We are actually about to launch the IDO project, so here’s a preview of the details.
ApeParkDAO will be launching its IDO on August 24, with a whitelist of 1,000 people. The plan is to raise 500,000 USDT at $5 per APD. successful whitelisted users will have 24 hours to participate in the IDO by purchasing any number of APDs worth 500 USDT. IDO participants will receive APD Ticket tokens, which they can exchange for APD Tickets at a 1:1 ratio once the tokens are available. APD.
The specific allocation of funds raised during the IDO is as follows.
40%: 200,000 USDT will create a liquidity pool at 1 PAD = 12.5 USDT and LP tokens will be locked in the Cave.
40%: 200,000 USDT to be stored in the Cave to ensure the intrinsic value of the APD.
20%: 100,000 USDT to be used for the repurchase and destruction of the APD for extreme deflation of the APD.
For those interested in the APD IDO, you can follow our official Twitter feed and we will be sure to give you notice of the IDO opening channel before it officially starts, so stay tuned!