ApeFi

ApeFi is a decentralized lending protocol on ApeChain that enables users to deposit crypto assets to earn yield and use their deposits as collateral to borrow other assets. It provides a simplified lending interface without intermediaries, following a Compound-like model with isolated markets for supported assets including wAPE, ApeUSD, and ApeETH.

Yield is generated through a basic lending and borrowing model. People who deposit their crypto assets earn interest paid by people who borrow those assets.

The protocol uses separate, isolated pools (markets) for each supported token: wAPE, ApeUSD, and ApeETH. Each pool has its own interest rate model. The rates adjust automatically based on utilization—meaning they go up or down depending on how much of the deposited tokens are currently being borrowed.

Borrowers pay interest on their loans. After the protocol deducts a small fee, the remaining interest flows directly to the depositors.

The system also includes functionality for flash loans (instant loans that must be repaid within the same transaction). It uses a price oracle—a trusted price feed—to determine the value of the collateral borrowers provide.

The protocol's design is a fork of the Compound model. When you deposit, you receive a token (called an AToken) that acts as a receipt for your deposit. Borrowers receive a debt token that tracks their loan. Interest accrues directly to these token balances over time, so your deposit token slowly becomes worth more.