💠PROTOCOL OVERVIEW

​For various reasons, DeFi protocols require a specific level of liquidity.

Liquidity	Example	Benefit
Native token	ETH-USDC	Treasury access to capital markets
Stablecoins	USDT-USDC	Ensure stability by minimizing depeg risk
Pegged asset	ETH-stETH	Minimize opportunity cost of converting assets

The typical ways to provide liquidity are as follows:

• Yield Farms, also known as Pool 2 emissions, encourage users to supply liquidity by offering token rewards as incentives.

• Protocol-owned liquidity delivers stability to token holders and allows projects to amass tokens from other projects.

• Tokens possessing voting rights might be subject to alternative token incentives aimed at swaying their voting choices.

INTRODUCING Apex Vault

Apex Vault is a DeFi protocol designed to assist projects in meeting their liquidity requirements in an attractive manner. Apex Vault is built on Velodrome, which in turn utilizes the Solidly codebase to provide equitable rewards for liquidity providers while considering impermanent loss. The initial Solidly system encountered numerous substantial challenges that impeded its integration into the Fantom ecosystem.

Apex Vault has implemented several enhancements to the Solidly codebase, each carefully selected to ensure the protocol executes the originally intended mechanism of enabling voters to justly compensate LPs for impermanent loss. Solidly faced several critical obstacles that hindered its success within the Fantom ecosystem.