In this AMA of IOTA Foundation which took place on June 13, 2024, Jonathan hosted Julian from ApeBond to discuss the transition from ApeSwap to ApeBond, their innovative bond products, plans for integrating with the IOTA ecosystem, and more! Read our notes below to learn more.

Background

Jonathan Hellweg (Host) – Community Manager at IOTA

Julian (Guest) – Co-Founder of ApeBond

ApeBond – on-chain OTC Marketplace

Exploring the Evolution of ApeBond: From Meme Token Origins to a Decentralized OTC Market

• Julian introduces himself as one of the co-founders of ApeBond and the head of business development, responsible for public-facing activities and partnerships.
• Julian details the origin of ApeSwap, which started in February 2021 as a meme protocol during a time when the crypto market was mainly concentrated on Ethereum, BNB (then BSC), and Polygon. He describes the prevalence of scam coins, meme tokens, and yield farming projects on BSC at that time.
• The ApeSwap founders, having experienced the DeFi summer on Ethereum, decided to create something better than the existing meme tokens. They launched a DEX alongside a yield farm, which quickly gained popularity.
• Julian describes ApeSwap’s growth, becoming one of the largest DEXs on BNB chain with $750 million in TVL and 1.2 million monthly active users during the bull run.
• The team realized they wanted to provide more value than just running a Uniswap V2 fork, which led to experimentation with different products and eventually the development of bonds.
• Julian explains the problems with the token emission model used by DEXs to source liquidity, describing it as “ponzinomics” and unsustainable in the long term. This model contributed to the bear market and left many projects in a difficult position.
• ApeBond was developed as a solution to help projects generate returns on their tokens without selling them directly on the open market. Julian describes it as a “decentralized OTC market” where projects can distribute tokens at discounted rates, vested over time.
• The transition from ApeSwap to ApeBond is explained as a shift from focusing solely on liquidity provision to creating a broader decentralized OTC market. Julian says that while liquidity remains a major focus, they’ve realized the potential for a larger impact in the crypto ecosystem.

ApeBond’s IOTA Integration: Sustainable Liquidity and Discounted Token Access

• Julian explains ApeBond’s plans with IOTA: They’re bringing their bonds product to the IOTA ecosystem. This means IOTA tokens will be available through bonds, and projects deploying on IOTA can use ApeBond to build liquidity, fund themselves sustainably, and offer their communities discounted tokens.
• ApeBond is described as a decentralized crowdsourced OTC (Over-The-Counter) market. Users can purchase tokens at discounted rates, vested over time. This provides an alternative to traditional OTC deals and selling on exchanges, which can negatively impact token prices.
• Julian details how the discount mechanism works:
  • It’s dynamic, based on market demand and bond sales algorithms.
  • Higher demand leads to lower discounts, while lower demand increases discounts.
  • The smart contract contains the tokens and manages the distribution.
• He provides an example: A user buying $100 worth of tokens at a 5% discount would pay $95 and receive $100 worth of tokens linearly distributed over 30 days.
• Julian explains the benefits for projects:
  • Avoid negative price impact from selling large amounts on open markets.
  • Better returns compared to traditional OTC deals or market maker liquidations.
  • More sustainable than yield farming for building liquidity.
  • Community engagement and marketing benefits through ApeBond’s partnerships and white label solutions.

ApeBond: Vision, Strategy, and the Future of Web3

• Julian explains that ApeBond has over 130 partners offering bonds, demonstrating the tangible value for projects. He then describes the ApeBond token $ABOND and its conversion to $veABOND.
• Users can lock ApeBond to receive $veABOND, which provides tier-based benefits such as access to the launchpad and flash bonds. Flash bonds are quick sales of blue-chip assets at slight discounts, requiring a certain tier for access. Julian hints at upcoming yield opportunities for $veABOND stakers and future plans to tie the token more closely to the bonds platform.
• Regarding the ApePad launchpad, Julian confirms it’s a permissioned, curated process. Interested projects undergo due diligence, including an initial call, review of documents, and final decision by an internal committee.
• When asked about his vision for the future of Web3, Julian shares ApeBond’s goal to make bonds as ubiquitous as yield farming or staking. He believes the industry is oversaturated with networks, but sees this as a manifestation of true decentralization. Julian argues that the market will ultimately choose the winners, and this process of building and destroying is necessary for progress.
• Jonathan agrees with Julian’s perspective, noting the unsustainability of some chains that rely on “bribing” users. He expresses optimism about protocols that offer tangible benefits beyond incentives.
• Julian shared the best places to learn more about ApeBond: their Twitter account, website, and documentation.

Check out these important links

• Listen to the Twitter AMA
• Listen to the YouTube Audio
• Follow Jonathan Hellweg on LinkedIn
• Follow Julian on Twitter
• Follow ApeBond on Twitter
• Follow IOTA on Twitter
• Follow IOTA on Discord

Show Information

Medium: Twitter AMA & YouTube (Audio)

Show: IOTA Foundation

Show Title: Buildsphere AMA Ep #5: ApeBond

Show Date: June 13, 2024