Disclaimer: The following text is a press release not written by Cryptonews.com.
Although the launch of ApeSwap Treasury Bills was one of the most anticipated NFTs of spring 2022, no one could have predicted their immediate success.
When the Treasury Bills went live on April 12, 2022, the first batch sold out almost as soon as it became available. The ApeSwap community ensured the success of the limited edition NFTs and was excited for the next round.
Based on early success and more future success, the ApeSwap team wanted to take a look at how Treasury Bills became a blue-chip NFT at launch, with a vision of the roadmap to come.
Why the Treasury Bill Presale was a success
The launch of the Treasury Bill product was one of the most anticipated events of the year for the ApeSwap community. Within minutes of launch, the rebate went negative – meaning the Treasury Bills price was higher than the price of BANANA – and purchases were disabled. That’s why the members of the ApeSwap community wanted to know how Treasury Bills can become unavailable so quickly. The answer lies in tokenomics.
The main use of the NFT is to sell Liquidity Pool (LP) tokens and receive BANANA tokens that will vest over a 14-day period. There are three main incentives to buying the Treasury Bill NFT: the unique art that is procedurally generated with each coin (more on that below), the opportunity to earn BANANA tokens at a discount, and the generation of protocol-native liquidity to do so the ApeSwap DAO can build long-term sustainability for the product.
How the discount rate works
As Treasury bills are minted, the BANANAS discount rate slowly decreases until it reaches 0% (or below). This has two main effects: First, a lower discount increases the return on investment (ROE) for the entire protocol and increases the inherent value of the BANANA token. Second, once the BANANA discount crosses 0% and turns negative, purchases of Treasury bills will be disabled until the discount rate turns positive again.
When Treasury Bill buyers visit the page on the ApeSwap website, they will see the LP combinations available, the current price and the discount from the current BANANA market rate. If the discount is in the red zone, it is currently negative and the buttons say Coming Soon. This serves as a countdown for buyers to look forward to the next release. Once the discount rate rises above 0%, the NFT – along with the revenue benefit from buying Treasury bills with LP tokens – becomes available for purchase.
What’s Next for Treasury Bills: New NFT Art
Building on the excitement, there is much more to come for the project. In the next phase, the NFTs will feature new artwork, with each unique piece being procedurally created at Mint.
The ApeSwap team works with the very talented iliana.ink, a Uruguayan artist who mainly designs tattoos. Her ink experience provides a highly creative eye to illustrate unique, one-of-a-kind NFTs that pay homage to designs from traditional paper notes. Although it’s their first NFT project, ApeSwap is confident it won’t be the last.
When minted, each Treasury Bill NFT will feature six variables, each with 10 options, creating over 100,000 original combinations that honor cryptocurrency pioneers. Although the history of cryptography is relatively short, the activity of these pioneers in promoting the industry is immense. ApeSwap looks forward to acknowledging and celebrating the collective past of cryptocurrency with a vision for the future.
The six variables found on every Treasury Bill NFT are:
- The certification: The border color around the legend reflects the purchase amount and ranges from bronze to diamond for the most valuable NFTs.
- The legend: The pioneers of cryptocurrency, including Bitcoin founder Satoshi Nakamoto, Ethereum co-founder Vitalik Buterin, and Lighting Labs CEO and founder Elizabeth Stark.
- The site: Digital and physical spaces that created early cryptocurrency use cases such as The Silk Road, The Sandbox and the Crypto Valley in Switzerland.
- The moment: Key developments that helped shape the atmosphere of today’s cryptocurrency, including the bitcoin hard fork, the moment Tesla began accepting bitcoin for purchases, and bitcoin as legal tender in El Salvador.
- The tendency: Trends that have developed more cryptocurrency utility and use cases, including the HODL phenomenon, GameFi, and (of course) NFTs.
- The innovation: Innovations like the mining rig, stablecoins, smart contracts, and hardware wallets that have helped bring cryptocurrency into everyday life.
The full range of the Treasury Bills NFT Collection will be launched on April 29, 2022. For those who want the special edition Obie Dobo NFT, it will be available for an additional seven days.
The Future of Treasury Bills
The launch of Treasury Bills was a successful case study by ApeSwap in creating a Simple Agreement for Future Tokens (SAFT) through an NFT, and the ApeSwap community has played a key role in this success. Selling Treasury Bill NFTs shows a demand for a liquid token where the utility buys BANANA at a discount (as needed based on the SAFT) that can be sold or traded at the discretion of the NFT holder.
Treasury bills are also one of the first recorded instances of fundraising for community-focused projects following a first Token Generation Event (TGE). By generating growth without mining more coins, ApeSwap can actively work towards keeping BANANA a deflationary token while returning rewards to NFT holders.
Finally, the Treasury Bill product is a complementary solution to ApeSwap’s liquid mining products. While liquidity mining is a short-term source of liquidity, Treasury Bills represent a more robust and sustainable source of liquidity for products. The ApeSwap DeFi Hub approach to multi-faceted product offerings meets the needs of users interested in both short-term opportunities (like yield farming) and long-term opportunities (like buying treasury bills).
The future of DeFi is a collective effort: it is up to the larger community to bring ideas to life and ultimately approve their proposed value proposition. The ApeSwap team couldn’t be more excited to build a new world of products in the crypto space and chart the future of DeFi with the incredible group of monkeys.
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