Introduction

ApeX Review 2024 – DEX Established by Top Centralized Exchange ByBit

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ApeX is a powerful decentralized exchange built for leveraged traders. It offers up to 20x leverage, custody-free trading, multiple trading pairs, and cross-chain L2 support. Investors can connect their crypto wallet and start trading without KYC or registration requirements.

Interestingly, the protocol was created by ByBit, a popular centralized crypto exchange with 300+ coins and 4+ million users. They launched ApeX in 2022 with the intention of building a fully trusted trading environment.

In this review, we will describe exactly why this platform is a much-needed and very exciting innovation in the crypto space. We will also summarize the main features of the platform so that you have a good overview before you get involved in trading with ApeX yourself.

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Basic information

Page type decentralized cryptocurrency exchange
Easy for beginners Yes
Mobile application Yes
🌍Company headquarters
🌍Establishment of a company 2022
💰Deposit method cryptocurrencies
💰Selection method Cryptocurrencies
📉Number of supported fiat currencies
📉Cryptomens on the stock exchange 8
👮‍♂️Trust in society high
☎Customer support active – email, telegram
✅Self cryptocurrency Yes/ Apex
Page https://www.apex.exchange/

ApeX review

ApeX Pro Exchange is a true Web3 trading platform. The exchange offers traders access to USDC-denominated cross margin perpetual contracts through an order book trading model. Apex Pro is self-service and decentralized. It runs on the Arbitrum network, a layer 2 on Ethereum.

Unlike isolated margin, where margin is assigned to a single position that is limited to a certain amount, cross margin is best utilized by traders with multiple margin trading accounts because it allows for reduced initial margin requirements, fewer margin variances, and smaller net settlements because of the recognition of intermarket hedged positions.

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The main difference between cross margin and isolated margin is that cross margin shares margin between positions and accounts, which can be useful for long-term investors especially during periods of market volatility. It is considered a risk management tool for sophisticated portfolios that consist of digital assets or cryptocurrencies, options, or other derivatives.

The platform is built on the ApeX protocol, which enables leveraged cryptocurrency trading. ApeX Pro uses Elastic Automated Market Maker (eAMM) which provides trading like on a CEX but also allows for better capital efficiency by allowing for the provision of a single asset as the underlying asset while synthesizing the asset.

Apex review

What makes the ApeX protocol unique?

  • Not only does the exchange offer USDC-backed contracts, but platform users can also provide liquidity on any tokens and push crypto derivatives onto the Ethereum blockchain while maintaining control over their private keys.
  • The exchange's order book model leverages StarkWare's Layer 2 scalable StarkEx engine for a better trading experience.
  • The long-term vision of the exchange is to create a platform social trading   which will provide added benefits to more experienced traders by introducing paths to passive income by allowing less experienced traders to track and replicate their trades, signals and  business strategy . 
  • The protocol allows users to trade with 20x leverage.
  • With ApeX, users can create liquidity pools and add liquidity to any pairs.
  • Users can also purchase APEX token through the bond program and stake to earn a return, e.g. users can stake to earn governance tokens and transaction fee rewards.

Apex was launched in early 2022.

Easy to access, control and use 

ApeX Pro Exchange really shines when it comes to ease of access, control, and use. It's so easy that even your grandfather could do it.

With a Web3 wallet open, connecting to the trading interface takes about 10 seconds. Simply go to the exchange address and you are connected in a few clicks. Navigating the platform is easy. The trading interface is streamlined, clean and intuitive. The exchange has a narrower set of trading tools and order types, so the system doesn’t feel overly cluttered.

ApeX review

The exchange is compatible with Arbitrum, Ethereum (ETH), Binance Chain (BNB), and Polygon (MATIC) networks for deposits and withdrawals. Since the platform is compatible with all EVM chains, more networks may be added in the future.

ApeX deposits and withdrawals

ApeX Pro is a crypto-in, USDC-out exchange. To make a deposit, click on the “Deposit” icon, select the desired chain, asset, deposit amount, and confirm. Your deposited cryptocurrencies will arrive at the correct smart contract on Layer 2 in about five minutes (where they are automatically converted to USDC) and are immediately available for trading.

For withdrawals, click on the “Withdrawal” icon, select your chain, desired withdrawal amount and confirm. Since all exchange funds are denominated in USDC, only USDC can be selected. For withdrawals from the Ethereum network, users can initiate a “Fast” or “Normal” withdrawal:

  • Ethereum Fast Withdrawal: It takes approximately five minutes to receive funds. A maximum of $50,000 can be sent with Fast Withdrawal. See the “Fees” section for details.
  • Normal Ethereum Withdrawal: It takes approximately four hours to receive funds.

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ApeX fees

The exchange does not charge fees for cryptocurrency deposits or withdrawals (of course, users pay transaction fees themselves). If a user chooses to initiate a quick withdrawal on the Ethereum chain, they will pay a slightly higher transaction fee plus a fee of 0.1 % on the total withdrawal amount.

ApeX Pro is an order book model, so the platform uses a Maker – Taker fee system. The fees are 0.02 % and 0.05 %.

Cryptocurrency Deposit Free
Cryptocurrency selection Ethereum Fast : Slightly higher gas fee + 0.1 % fee on the total withdrawal amount Ethereum Normal + other chains: Free
Trading fees Maker: 0.02 % Taker: 0.05 %

 

Since ApeX Pro is a perpetual contract trading platform, funding fees are paid between long and short traders every hour. Financing fee rates are not significant. However, you can find more details here.

ApeX instructions

To use ApeX, simply visit their site apex.exchange and launch the app or click on “Trade now” and connect your Web3 wallet, e.g. MetaMaskAfter you decide to agree to the terms, you can proceed to verify ownership of your wallet and authorize trading.

Once you have completed this quick process, you can proceed and deposit funds to trade on the DEX.

ApeX review

Depositing assets will open up opportunities for you to start executing various orders on the platform. If you want to receive alerts or notifications regarding your trading activity, you can also set up email notifications.

Allow your wallet to communicate with the exchange. You can choose the blockchain network you want to use. In this example, we chose Arbitrum because it offers cheaper transaction fees.

ApeX review

The exchange offers USDC-backed contracts, so you will be asked to allow USDC deposits

You can then choose the asset you want to use and pay a transaction fee.

ApeX review

You will be able to verify your transaction on Arbiscan – Arbitrum's block explorer.

You can then simply go to the main trading interface and set up your trades. You choose how much of your total collateral you want to use for your long or short positions. We have taken a long position here.

ApeX review

ApeX review

Once your order is executed and the position is closed, you can check your profit and loss.

Staking on ApeX

Passive income can be earned on the exchange by holding cryptocurrencies in a wallet. This solution is known as Staking. ApeX offers various staking options, but the reward is charged exclusively for holding exchange management tokens. Clients can also earn additional income by referring new clients to the exchange.

 

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Additional income for holding APEX, esAPEX and veAPEX

Exchange clients who act as liquidity providers for certain pairs will receive esAPEX LP tokens. After a 6-month holding period, they can be converted to APEX cryptocurrency or locked for staking. esAPEX tokens are also credited as a reward for staking APEX. When an investor locks APEX or esAPEX coins in their wallet, they become the owner of veAPEX certificates. Their holders receive a 30% discount on trading fees on a weekly basis.

There are two staking options available:

  • With flexible terms – allows you to lock and unlock tokens at any time;

  • With a fixed lock-in period from 1 to 26 weeks.

The longer an investor locks in the token, the higher the return. For example, if you choose a fixed term option of 26 weeks, the resulting reward will be double the reward for staking the token for 1 week.

Affiliate program

As part of the referral program, traders can earn two types of rewards. The first is 10 % of fees for each referral. The second reward is 3% cash back of fees for trading derivatives.

Fee cashback will only accrue after you refer at least 10 new clients. Fee reimbursement is paid within one year of the 10th referral signing up.

How does ApeX Pro work?

The StarkEx engine that powers the exchange uses cryptographic proofs (ZK proofs) to verify transactions. These are then further processed using Validium, another cutting-edge technology that helps ApeX Pro achieve faster verification times and scalability without sacrificing security.

Using this secure and highly scalable environment, you can conduct fast and low-cost trading of perpetual contracts.

Multiple chain support

A key advantage of ApeX Pro is its multichain nature. At the moment, support for deposits and withdrawals is available on four popular blockchain platforms — Arbitrum, Ethereum (ETH), Binance Chain (BNB), and Polygon (MATIC). Theoretically, the platform is able to support other chains compatible with the Ethereum Virtual Machine (EVM). Therefore, we can expect more chains to be added in the future.

High performance

The exchange is capable of processing ten trades per second and 1,000 order entries and cancellations per second. The platform is therefore scaled down to a size that is hard to match for any other DEX platform. StarkEx helps the platform achieve stellar processing speeds as a high-speed Layer 2 solution for the Ethereum blockchain. Transacting directly on Ethereum is significantly slower (transaction completion time between 10 and 30 seconds) and in this case more expensive than routing transactions through StarkEX.

Maximum security and privacy

The ZK-proofs generated by StarkEx ensure that most transaction data is private and well protected from any security breach. In Ethereum, where the final transaction data is stored, only the balance fees are ultimately visible.

This helps to securely protect your transaction activity and hide it from the prying eyes of those who should not be privy to your trading activities. Combine this with no KYC requirements and you have fully private decentralized trading.

As such, ApeX Pro is a platform that privacy-focused perpetual contract traders will certainly appreciate.

The exchange's highly scalable and secure architecture, powered by StarkEx technology, is not its only advantage. Traders – both experienced and novice – will also appreciate the platform's significant transactional benefits.

Order a book model

The use of an order book model is among the key advantages of ApeX Pro. While the alternative automated market maker (AMM) model has become very popular in the crypto industry, it is known to suffer from some significant drawbacks, such as high slippage and the risk of volatile loss, and is undoubtedly unfamiliar to less experienced and traditional cryptocurrency traders.

While the AMM environment can be confusing for traders without deep experience in cryptocurrency trading and liquidity mining, the order book model is a familiar system for any current or aspiring trader. Using this very familiar business model, the exchange opens the door to crypto derivatives trading to a diverse user segment. If you thought your traditional stock market experience might not be suitable for trading perpetual contracts, try ApeX Pro.

Cross Margin Trading

ApeX Pro also supports cross-margin trading, which allows you to transfer margin between your different accounts to meet minimum margin requirements. If you have excess margin in one account, moving it to another account that is in danger of falling below its minimum will help avoid liquidation.

Low fees and higher leverage

Traders on ApeX Pro have access to leverage of up to 20x. You can also enjoy zero gas fee transactions with instant settlement. Actual trading fees are also among the lowest in the industry, with a standard producer fee of 0.02 % and a taker fee of 0.05 %.

How do I calculate the leverage on my position?

ApeX review

Position leverage indicates the effective leverage calculated based on the value of the trader's contract(s) compared to the maximum possible loss of the position. You can find this data in the dashboard overview.

The calculation is based on the following formula:

Leverage = Contract Value / Total Capital

  • Total equity = position margin + order margin + available margin + profit today
  • Profit today = unrealized profits and losses from open positions 

ApeX review

Trade-to-Earn

ApeX review

ApeX Pro offers a range of crypto rewards for regular users. Its Trade-to-Earn program rewards users for trading and staking activities. Rewards under the program are paid in BANA tokens (described later in this article) and are paid out weekly. Meanwhile, most other DEX platforms have payout/settlement with significant lock-in periods of several months or even years.

ApeX Protocol Tokens

ApeX Pro uses two key tokens, APEX and BANA.

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APEX Token

The two main functions of a token are governance and user motivation. Token holders can participate in governance voting to decide on changes or new features of the protocol and its specific products. In this context, it is necessary to distinguish the protocol itself from the products based on it.

For example, ApeX Pro specifically refers to a DEX product hosted on the underlying decentralized protocol. Owning APEX does not limit you to making decisions on ApeX Pro; the token management functionality extends across the protocol. However, it is worth noting that currently the only full-fledged product of the protocol on the mainnet is the DEX itself, ApeX Pro.

In addition to governance, APEX is also used to incentivize the platform's user community for referrals and liquidity provision.

APEX is an ERC-20 token on Ethereum. It has a maximum and total supply of 1 billion. The token's circulating supply currently stands at nearly 50 million APEX. 

BANA Token

ÄpeX review

BANA is primarily used as a rewards token. We mentioned above the platform’s innovative Trade-to-Earn rewards program, which pays out weekly in BANA tokens. The entire supply of this token was minted from 25 million APEX specifically allocated for minting BANA.

BANA rewards can be exchanged for USDC, a leading and highly liquid stablecoin, or can be used to add liquidity to the BANA-USDC pool for additional BANA rewards.

During the year-long Trade-to-Earn event, $190,000 worth of BANA tokens will be given away to participants each week. This represents a reward of nearly $10 million over the course of the year – all for active crypto perpetual futures traders. The value of BANA is maintained through a Buy & Burn Pool (BBP), with 50% of APEX’s % transaction fees used to buy back BANA tokens and burn them.

Security and privacy 

The security of user funds on the exchange is as strong as Arbitrum's core Layer 2 security, ZK rollup technology, Starkware smart contract software, and your Web3 wallet.

Starkware uses StarkEx ZK rollup smart contact technology on the Arbitrum Layer 2 network. When users send funds to ApeX Pro, they are actually sending funds to StarkEx smart contracts on Arbitrum. All of this is visible on-chain. Users have maximum control over these smart contracts. If the transaction request is not delivered properly, users can freeze their smart contracts and proceed with either a forced withdrawal or a forced trade to retrieve their funds.

Users enjoy 100% of privacy and anonymity on ApeX Pro. Because most Web3 wallets do not collect personal identifying information, and because all that is required to trade on the exchange is a connection to a Web3 wallet, trades on this platform are as private as any other DEX.

Customer support

Please note that Bybit customer support will not be able to assist with any issues with your order directly on the exchange. If you encounter any problems with your order, please do not hesitate to contact customer support via official ApeX Protocol's Discord Ticket service. To submit a ticket, read the guide How to contact ApeX protocol support.

Pros and Cons

Pros

  • Low fees: The fees for creators and recipients are 0.02 % and 0.05 %, and the network fees are zero.
  • Rewards: Potential to earn from staking, referrals, Trade-to-Earn and more
  • Easy to use: No minimum investment and no KYC or registration requirements. The user interface is modeled after Bybit
  • High security: Non-custodial and was developed and supported by Bybit, a Tier A exchange

Cons

  • Limited trading pairs: currently only five are available (BTC, ETH, XRP, ATOM, DOGE) 
  • Limitations: Not available to US citizens or residents.
  • Selection speed: Up to 4 hours for slow withdrawals.

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Conclusion

ApeX Pro is a unique platform that combines the best features of DEX and CEX. It offers privacy protection and a highly secure trading environment that features the order book model that is so familiar to many traders. Add in its great scalability and zero-fee transactions, and you'll be hard-pressed to find a better decentralized platform for cryptocurrency perpetual contract enthusiasts.

All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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