ApeSwap Taps Gauntlet for Incentive Optimization

Gauntlet is excited to announce our partnership with ApeSwap. ApeSwap is a leading decentralized exchange (DEX) on Binance Smart Chain focused on offering a premier trading experience. The ApeSwap team recognizes the importance of ensuring its LP rewards are efficiently allocated to maximize volume and revenue back to the protocol and token holders. As part of this partnership, Gauntlet’s incentive management platform will ingest the ApeSwap protocol data to quantitatively optimize rewards and drive growth.

Modeling ApeSwap’s Incentive Spend

Incentives within DeFi are an essential component to bootstrapping liquidity and growth. Successful incentive programs create a virtuous cycle of liquidity attracting users, users generating fees, and fees attracting additional liquidity. As such, it’s important to understand the effectiveness of token emissions with regards to current vs. optimal spend, which liquidity pools should receive more incentives than others, and how incentives should change over time in response to market conditions.

Additionally, incorporating factors like partner pools and other strategic initiatives are essential in ensuring holistic optimization. The Gauntlet platform ingests these and other variables into our Incentive Optimization (IO) platform to determine optimal spend levels to maximize ROI.

Improving Spend Efficiency

The obstacle that ApeSwap and similar protocols face is the parameters for these pools can have broad implications and must be dynamically managed to avoid surplus or deficit spending. Gauntlet’s solution to this problem is the IO platform, which optimizes for spend efficiency and volume while evaluating the effectiveness of rewards across all pools. To provide dynamic incentive optimization for ApeSwap, Gauntlet will refine its existing incentive models with a focus on key metrics such as ROE (return on emissions) and V/IS (volume to incentive spend). We will provide recommendations for emission parameters for native, partner, and strategic pools.

If you’re interested in learning more about Gauntlet’s IO platform, you can explore the platform and get in touch with our team here.