GM Community,
With the launch of Perpetuals v2 on Arbitrum, we are pleased to introduce a new liquidity pool, the ALP Pool on Arbitrum, powered by the ApolloX platform's liquidity provider token, $ALP. This ALP pool serves as the primary liquidity pool for Perpetuals v2 on Arbitrum and allows users to become a liquidity provider and earn yield by minting $ALP. Users can also stake $ALP in the Syrup Pool to earn staking rewards. We’re thrilled to introduce you to all the benefits of the ALP Pool on Arbitrum and how to get started.
The ALP Pool: Mint $ALP to Earn Real Yield from Platform Fee Revenues
What is the ALP Pool on Arbitrum: Comprising assets such as USDC, USDT, DAI, ETH, and BTC, the ALP Pool allows users to become a liquidity provider and earn significant yield by minting $ALP with any of the aforementioned ALP pool assets. The ALP pool on Arbitrum has similar characteristics to the ALP pool on BNB Chain - for a refresher on the features and mechanisms of the ALP Pool, visit our previous guide here.
Benefits of Minting $ALP: 50% of the total platform fees on both ApolloX and PancakeSwap Perpetuals v2 are distributed to ALP liquidity providers, encompassing various components like opening/closing position fees, execution fees, funding fees, and liquidation fees. You can simply connect your wallet and click Buy ALP, or visit here for a step-by-step guide.
How the ALP Pool on Arbitrum Works:
By having multiple tokens, the ALP pool:
- Provides users with a diverse set of trading options
- Reduces the impact of individual price fluctuation of each asset
- Provides a balanced risk profile for liquidity providers
- Enables unique features such as cross-token trading pairs.
The initial issue price of ALP is $1. The price of ALP is influenced by the profit or loss of the traders and income from trading fees, funding fees and liquidations. The price dynamics of ALP tokens are directly linked to the performance of the ALP pool. Performance of the pool can be affected by net PnL of the traders that utilize the pool for leveraged trading. The performance of the pool as a counterparty to traders results in value accrual in the token. Liquidity providers can then redeem any of the constituent assets by burning/selling the ALP token.
ALP tokens are also non transferable by nature and are used to represent liquidity added into the ALP pool. ALP tokens are separate on each chain (Arbitrum, BNB Chain) and are not interchangeable.
The ALP/CAKE Syrup Pool: Earn Boosted Yield by Staking $ALP to earn $CAKE Rewards
In addition to the benefits of minting $ALP for real yield, there’s an opportunity for enhanced yields: stake your $ALP tokens and dive into over 20% APY in $CAKE rewards! This is your chance to earn CAKE on Arbitrum.
For BNB Chain, ALP liquidity providers were able to earn additional yield on their ALP tokens by staking ALP and receiving APX.
On Arbitrum, ALP liquidity providers are able to earn additional yield via staking $ALP into the Syrup Pools and receiving CAKE tokens.
To get started, simply click “Stake Now” on the PancakeSwap ALP (v2) Page, or visit here. A step-by-step guide to staking ALP in Syrup Pools can be found here. For more details on the syrup pool, including emissions and start and end dates, please visit here.
We hope this guide on the new ALP pool on Arbitrum has provided you with valuable information and insights. We invite you to explore all the exciting new features of Perpetuals v2 on Arbitrum. Explore now, rewards await!
Stack’em,
The Chefs 🥞
Disclaimer: This information presented here does not constitute any form of financial advice or recommendation, please do your own research before making any investment decisions. By proceeding to engage in perpetuals trading on the PancakeSwap platform, you confirm that you are not a resident of a restricted jurisdiction and meet eligibility criteria for trading derivatives on the platform.